A new study from Verve Mobile [pdf] looks at trends across 2,500 mobile campaigns run on its location-based mobile ad platform in 2012, examining the different strategies taken by advertisers. The study notes that 36% of the campaigns leveraged geo-aware (14%) or geo-fenced (22%) strategies in 2012, more than double the proportion from 2011 (17%). While that indicates a greater level of expertise in targeting approaches, the primary strategies remained DMA (30%) and audience (24%) targeting.
The study also analyzes how different verticals used location-based targeting, finding that restaurant (43%) and retail (32%) were the most likely to use geo-aware and/or geo-fenced strategies, while political (73%), auto (70%), and telco (69%) advertisers gravitated towards targeting based on DMA/Zip/Zip+4.
Overall, the campaigns that used location targeting were twice as effective as those that didn’t, per the report. Among the different tactics, geo-aware and geo-fence mobile programs produced the best click-through rates, while audience-targeted campaigns fared worst.
About the Data: Verve Mobile describes geo-aware and geo-fencing strategies as follows:
“Geo-aware campaigns use real-time location data to deliver specific, often dynamic, messages to the user based on their distance from the nearest retail location or proximity to a particular location.”
“Advertisers targeting users based on a set distance (often miles) from a location of interest such as a store, or physical site where known audi- ences frequently visit. Consumers outside of the geo-fence would not be served the ad because they fall outside of the location parameters. This technique is particularly useful for advertisers looking to drive foot traffic to physical store locations.”