October 9, 2013

The local mobile marketing explosion

Written By Martin Sandhu
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It promises high conversion rates, easy targeting, and in-depth consumer profiles. And according to many it’s already delivering.

Retailers, brands and agencies are scrabbling to get on the location-based marketing bandwagon, particularly with the introduction of things like iBeacons and the highly anticipated launch of Google Glass.

Here’s four reasons why local mobile marketing is taking off, in a big way:

The new cookie:
Mobile marketing has always been more difficult than traditional online marketing as mobiles do not except third party cookies, making data collection more challenging. This is where location-based technology comes into it’s own though. Geo services give marketers new ways to track their mobile audience, as well as help to identify them – or at least build up a profile. And with the use of some clever analysis, the data collected is also very useful for targeting.

Results:
Despite really only being in its infancy, local mobile campaigns are seeing results. Verve studied over 2,500 of its mobile marketing campaigns and found that its location-based ads were almost twice as effective as the mobile industry average CTR of 0.4%. Enabling campaigns with local data produces measurable results.

Increasing budgets:
With such impressive results it’s not surprising that budgets are already being expanded. A recent survey of 400 brand executives by Balihoo found that 91% planned to increase their investments in location-based marketing campaigns in 2013. A separate study found that geo-enabled ad spend made up 8% of total mobile ad spend in 2012; this is expected to increase to 33% by 2017.

Beyond the smartphone: 
Although it started out a mobile thing, local-mobile marketing is quickly moving beyond just the smartphone. As technology continues to evolve so too do the options this type of marketing offers. Both tablets and wearable devices are growing in popularity and a becoming just as key for location ads as smartphones already are. The possibilities go even further when marketers look into the functionality of technology such a Google Glass. For example when Glass is worn outside, augmented reality could come into play for advertisements. Should a user look at the sign for a restaurant or start to head into a clothes store, Glass could show users adverts and information relevant to their current activity.

Now is definitely the time to start exploring how local mobile marketing could benefit your business.