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BizReport : Mobile Marketing : January 31, 2011

Why local, mobile are complimentary offerings

More ad dollars are being pushed into the mobile space this year, but the smart money is going not just to the mobile web in general but toward more specific mobile ad options. Geographically targeting ads to local consumers, for instance, has been shown to have bigger rewards than generalized mobile campaigns.

by Kristina Knight

Why? Although more consumers each day are signing on to the web via mobile device to surf or check email, the bulk of consumers continue to check in via mobile for specific things. They want to find Bob's Hardware in downtown Chicago, for instance. They want specific details, which makes a more localized approach to mobile marketing a good bet.

According to a recent BIA/Kelsey report the local mobile ad spend is expected to reach $2 billion by 2014. That is a combined annual growth rate of 57%. Meanwhile mobile search is expected to reach $1.6 billion, mobile display ad revenue is expected to reach $803 million and SMS ad revenues are expected to top $560 million.

"Location is the 'killer app' for mobile advertising," said Greg Sterling, Senior Analyst for Opus Research. "Being able to deliver visually rich, engaging ads to mobile consumers creates a great opportunity to influence both their immediate and longer-term purchase decisions."

A new release from Greystripe puts a spotlight on this local movement, connecting advertisers with relevant content and targeted ad units. Through their partnership with Media Networks, Inc. (MNI), advertisers are given access to the mobile content and ad formats offered by Greystripe.

"Together [this partnership] will enable advertisers to reach local audiences on our broad network across mobile platforms," said Michael Chang, Greystripe CEO.

Making the local connection potentially even more important is news from Pontiflex and Harris Interactive that finds consumers click onto mobile app ads by mistake. According to the report up to 47% of mobile app users report they have clicked or tapped into app ad units by mistake. That isn't to say that app ads are useless, but advertisers need to be wary of click-thru rates in mobile just as they are from online environments. The survey also drives home the point that advertising to consumers through relevant content makes more sense than blindly hoping for a click.

Tags: BIA/Kelsey, geo-targeting, Greystripe, mobile ads, mobile marketing, Pontiflex, targeted advertising

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