Why Local-Mobile Marketing Is Exploding

localvnatl-1Location-based mobile marketing promises the sky: high conversion rates,  surgical targeting, and rich consumer profiles.

But does it deliver? According to many accounts, it does.

Not surprisingly, retailers, brands, and agencies are scrambling to hone  their location-based approaches. These encompass everything from  “geo-aware” and “geo-fenced” ad campaigns, to hyper-local efforts keyed to Wi-Fi  hotspots, and algorithmic location-based targeting of audience segments like  soccer moms, bargain hunters, coffee enthusiasts, etc.

A new report from BI Intelligence on  location-mobile marketing takes a look at key stats on the  location-based services marketplace that indicate it’s supremacy in mobile  marketing, explain how the most important techniques (such as geo-aware,  geo-fenced, audience-based local-mobile campaigns) work, examine the  cornerstones – such as data and audience building – to a successful  location-based mobile strategy, look at who has the valuable location-based  data, and analyze the six most effective local-mobile marketing  tactics.

Here’s an overview of the location-mobile marketing  explosion:

  • Location is the new  cookie: Collecting  data has always been difficult because mobile does not support third-party  cookies that travel easily across the ecosystem, allowing for straightforward  tracking and data-gathering. That’s where location-based  mobile technology comes in. It gives marketers new ways to identify and track mobile  audiences, and with the aid of algorithms, it can also group them into  behavioral and demographic segments for targeting.
  • Money  is flowing into location-based mobile  marketing: A recent survey of 400 brand executives by Balihoo found that 91% planned to increase their  investments in location-based marketing campaigns in 2013. Finally, a study by Berg Insight found that  location-enabled ad spend reached about 8% of total mobile  ad spend for 2012. This proportion is expected to increase to 33% by 2017.
  • Location-based data is driving much of the interest –  and success: Enabling  campaigns with local data produces measurable results. In  a study of over 2,500 of its mobile marketing campaigns, Verve found that its location-based ad efforts were about twice as  effective as the mobile industry average click-through rate (CTR) of 0.4%.  Geo-aware ads, geo-fenced ads, and location data paired with audience  demographics or purchase intent are all proving to be extremely  successful.
  • Location is extending beyond the  smartphone: The location conversation may have started out  as a way to take advantage of mobile phones, but as technology continues to  evolve, the conversation needs to broaden. In 2012, only 12% of smartphone owners and 17% of tablet owners  said they used their device throughout the entire shopping process. This year,  one-third of smartphone and tablet owners said they did so. Additionally, more tablet consumers are beginning their shopping process on their  tablets. This  shows that location ads should be targeted to tablets as well as smartphones,  because the first search for a local business might take place on a  tablet.

By Josh Luger, July 2, 2013 For Business Insider Tech

Read more:  http://www.businessinsider.com/local-mobile-marketing-exploding-2013-6#ixzz2Y0o2mBko

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