Mobile ads that combine location with profile data see 10 percent increase in click-through

xAd | 11/21/2013

By adding strong data insights such as audience profiles and mobile search behavior to details about a consumer’s location, mobile marketers can amplify the results of targeted mobile ad campaigns, says xAd, a mobile-location based advertising platform. According to the xAd Q3 2013 Mobile-Location Insights Report, xAd-powered campaigns that combined location and data saw a 10 percent lift in click-through rates, signaling the power of the combination.

Nearly all of xAd’s campaigns (97 percent) used some form of location targeting in Q3, either standard geo-location (zip code, DMA, etc.) or geo-precise targeting (areas not conforming to standard geo-boundaries). In addition to targeting consumers with mobile ads based on their location, 96 percent of xAd’s location-based campaigns now include an additional data source to enhance relevance and results.

Scion, a vehicle brand owned by Toyota Motor Corporation, used xAd’s SmartFence technology, which combines real-time mobile search behavior with location, to identify and engage in-market auto shoppers to drive foot traffic to regional Scion dealerships. When compared to a standard geo-fence, these dynamically targeted auto shoppers were more likely to click on an ad, as Scion’s CTRs for ads jumped by 40 percent. Additionally, consumers were 120 percent more likely to engage in secondary actions on the campaign’s custom landing page by seeking maps, directions and more detail or making a phone call.

“Location is a powerful tool for driving relevance of our specific messaging,” said Mike Salvo, senior vice president of strategy at ZenithOptimedia, the agency that executed the campaign. “For this campaign, we were able to use location and data to dynamically target in-market auto shoppers with the best messaging to drive action. The combination of location, dynamic mobile behavior, and messaging options provided results that exceeded our expectations.”

Overall in Q3 2013, xAd’s location-targeted campaigns performed above the industry standard CTR benchmarks for display and search at .60 percent and 8.9 percent respectively. Campaigns in the xAd network that used location alone performed at a CTR of 0.55 percent. While this is still above the industry benchmark, layering on an additional level of data increased the CTR to 0.60 percent.

“Location topped with data such as audience attributes, mobile behaviors, and visit patterns empowers marketers to create a more targeted and engaging advertising experience,” said Dipanshu “D” Sharma, CEO at xAd. “What we are quickly discovering, on our platform and across the industry, is that layering location and data together can unlock the full power of mobile advertising — truly demonstrating a ‘one-plus-one-equals-three’ marketing effect where combining two strong inputs can exponentially increase the impact of a campaign.”

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