Studies Show Trend for Geo-Precise Ads Skyrocketing

As studies show, the last year has proven to be remarkable for mobile advertisers and geo-targeted advertising. The improvements in location-targeting technology allow location-focused mobile providers to reach and engage target audiences like never before. By using the GPS device within the smart phone or tablet to get an exact location of the user to display ads tailored to where they are, rather than zip codes or cities, geo-precise advertising is gaining momentum as one of the most potentially successful ways for marketers to spend their advertising dollars. In focusing the campaign on the consumers for whom it’s most relevant in real time, an advertiser can increase the inclination of consumers to click on their ad, which can ultimately increase profits. According to xAd’s “Mobile-Location Insights – Q1 2013” report, “location, offline offers and promotions” were found to be the top drivers of consumer response and engagement. The study showed that the percentage of campaigns using standard geo-targeting dropped from 64% in Q1 to only 13% in Q4. At the same time, the proportion using geo-precision, such as geo-fencing and geo-specific behavior targeting, tripled from 27% to 81%. The report clearly points to a growing interest from marketers to concentrate on location as one part of developing more effective, contextually-relevant mobile advertising.