Location-based Mobile Ads Influence Real-World Shopping Behavior

Location-based Mobile Ads Influence Real-World Shopping Behavior

xAd Study Provides Location-based Mobile Advertising Tactics Across Auto, Retail, and Restaurant Categories

NEW YORK, NY — A new location-based mobile advertising study by xAd and Nielsen measured campaign effectiveness across retail, restaurant, and automotive categories. The study analyzed nearly 80 individual mobile ad campaigns by 12 leading brands to help marketers understand how location-based mobile advertising can be used to influence real-world behaviors and how to leverage mobile to measure offline behavior.

According to estimates from the U.S. Department of Commerce, nearly 90% of retail commerce happens offline. Yet marketers have not been able to tie what they know about consumers’ digital behaviors to offline physical actions. xAd’s study, Mobile Ad Measurement: Campaign Design for Driving In-Store Visits, reveals how location-based proximity targeting and relevant messaging can affect purchasing outcomes and outlines ways to design a location-based mobile advertising campaign to encourage offline activities.

xAd tested several elements to understand the best way to design a mobile campaign including: How does reaching a consumer when they are close to a store impact their likelihood to visit? Is serving ads around competitors’ locations a successful tactic? And how can creative message be optimized to increase visitation?

“Each industry varies quite a bit in terms of needs, immediacy, and frequency,” said Sarah Ohle, Director of Marketing Intelligence at xAd. “As a result, each industry has specific tactics that work to move consumers from their devices into a business location.”

Retail: Nearly 1 in 10 consumers visited a retailer after being exposed to an ad for that brand. Adding a proximity-based message to creative campaign showing the closest business was the strongest overall driver of foot traffic for retail.

Restaurant: Like Retail, tests confirmed that adding a location message directly to banner ads was the strongest performing tactic for driving foot traffic. Competitive targeting is crucial for the long-term, but may not have an immediate impact. When someone is already near a competitor’s location, serving an ad may not lead to an immediate visit, however it’s a strong tactic to raise awareness for future restaurant decisions.

Automotive: Auto purchases have a long consideration process and requires different engagement tactics. In general, Auto has the lowest visitation rate of the three categories studied, however considering the size of these purchases, even the smallest bump to visitation can make a serious impact. Raising awareness is the best tactic. Proximity-based marketing in auto is not as important as in other categories for driving immediate visitation. Geo-targeting is still important to make sure consumers are getting the right message in the right context to stay top of mind.

NFC Enabled Smartphone“We understand that mobile plays a key role in the consumer’s path to purchase, but we need a better understanding across each industry on the direct impact that mobile advertising can have beyond on-device activities,” explained Monica Ho, SVP of Marketing at xAd, who also serves as the co-chair of the Mobile Marketing Association’s Location Committee. “The insights we gain from mobile-location data allows us to connect the dots between online and offline sales – and back to specific campaigns and marketing efforts.”

Free Trend Report: Why Location Is the New Currency of Marketing

Free Trend Report: Why Location Is the New Currency of MarketingFinding effective ways to deliver branded messages in today’s complex media environment is one of the biggest challenges facing advertisers. Traditional methods of advertising have become less effective as consumers spend less time in places where marketers have traditionally had an advantage in reaching them. In addition, consumer attention has fragmented across multiple channels as media options and device platforms increasingly diversify.

Active consumers spend money, and while they are going about their daily routine, they are also actively looking for information. According to Google, more than 50% of all mobile searches have local intent, and 17% of search happens while consumers are on the go.

Digital Out-of-Home (DOOH) advertising, also known as Digital Place-based (DPb) media, utilizes strategically placed, networked digital signage displays to reach on-the-go consumers while they are outside of their home with highly targeted messages. Location-based mobile and digital out-of-home media are part of a larger multiscreen ecosystem that effectively amplifies brand messages to create a deeper level of engagement with active consumers.

Why Location Is the New Currency of Marketing is aimed at CMOs, media buyers and strategists and provides insight into why marketers are increasingly shifting their advertising dollars to these rapidly emerging media platforms.

Highlights from Why Location Is the New Currency of Marketing include:

  • The Connected Consumer
  • Leveraging the Moment
  • Multiscreen Campaign Planning
  • Amplifying Reach With DOOH Media

Download your free copy here

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