The average consumer spends 127 minutes in mobile applications a day, responding to emails, browsing Facebook, and searching for places nearby. To give some perspective, that’s nearly an hour more than people spend on the web and 41 minutes shy of the 168 minutes Americans spend watching television on a given day. Marketers however, have been slow to react, allocating less than 1% of advertising spend to a medium that now accounts for 10% of all media consumption.
Unlike with television and the desktop web, where consumers are planted on a couch or at a desk, the mobile consumer is on-the-go, using their mobile device to solve problems or fill time as they move through their day. Companies like Moasis Global, xAd, PlaceIQ and Verve Mobile have popped up to deliver channels for reaching these consumers in highly targeted ways, with a focus on place-based campaigns that combine other data to help marketers tighten their ROI in ways they have never been able to do. Smart marketers are leading the way, as one of three dollars spent on mobile advertising now goes to location-targeted advertisements. That number is set to grow to nearly one-half by 2017, according to BIA/Kelsey.
The value of hyperlocal marketing rests on the belief that where we go — the stores we frequent, the neighborhoods we call home, and the places we visit — says a lot about us as consumers. The mobile platform presents marketers with a unique way to reach consumers as they move throughout their day, driving relevancy and reducing waste in a campaign.
In a new report from Street Fight Insights, “Hyperlocal Targeting on the Mobile Platform,” we survey the burgeoning industry of vendors that target individuals based on where they are, taking a deep dive into the technologies and strategies available for marketers. We also discuss the limitations and misinformation that exists in the marketplace, and outline best practices for executing a hyperlocal campaign.
Here’s what marketers will find in the report:
- How It Works: The emergence of hyperlocal targeting has created a new vernacular, language that describes the techniques and tactics that go into planning, executing and tracking a hyperlocal campaign. Terms such as “location-enabled” and “hyperlocal” inventory flesh out the nuances in how location data is collected and shared on a mobile device. Targeting tactics such as geo-fencing and device profiling demonstrate the many ways location data can help marketers connect with consumers
- The Landscape: As marketers begin experimenting with hyperlocal targeting technologies, a burgeoning, competitive vendor landscape has emerged to help them. Vendors are applying location-targeting technology to mobile display and search advertising as well as to branded mobile applications. Scores of new companies proffering such solutions are vying for marketers’ attention, with a goal of helping media buyers simplify the
- Media Buying in Hyperlocal. Adding to issues around standardization, the available pool of hyperlocal inventory is littered with inaccurate information, pushed by publishers who embellish location data they get from mobile users to garner more advertiser interest. Vendors also need to develop alternatives to CPM or CPC pricing. Hyperlocal targeting isn’t keeping up with cost-per-action metrics that are starting to dominate campaigns on the Web.
- Case Studies: Big brands are getting in the game. Pilot projects and full-blown ad campaigns from such companies as Adidas, Best Western and Pinkberry show promise. As brands ratchet up mobile spend in 2013, we’re likely to see new solutions emerge.