xAd: Behavioural Geo-Targeting on the Rise in Mobile Search Ads

xAd: Behavioural Geo-Targeting on the Rise in Mobile Search Ads
Mobile Local U.S. Ad network xAd has released last week its latest quarterly report Mobile-Local Performance Stats, focused on trends throughout 2012, which revealed that search behavioral targeting (targeting based on geo-precise mobile search behaviors), grew 212% from Q1 to Q4 2012. – more than any other mobile targeting technique.

Although search behavioral targeting saw the most growth, geo fencing (the ability to reach a consumer based on a set proximity or distance away from a specific place or point of interest) was the most popular targeting technique overall, ending the year with over 55% of campaigns utilizing this type of targeting. Standard geo targeting (targeting by ZIP code, City or DMA), on the other hand, declined from 64% of campaign targeting in Q1 to just 13% by Q4.

According to xAd, this rapid shift in targeting focus can be attributed to the increased performance and efficiency experienced through more precise mobile targeting techniques.

Across campaigns that leveraged more precise geo-targeting, xAd indicated that ad waste was reduced on average by 20-30%, while ad performance increased by double digits. Search behavioral targeting provided the highest lift on average, increasing performance 60% over the industry benchmark. Place-based targeting was a close second, delivering a 55% lift.

Throughout the year, xAd’s display and search ads performed above mobile industry standard performance rates, with locally targeted display averaging a CTR of 0.8% and targeted search a CTR of 8%.

Many U.S. national brands are using location-based advertising as a tool to advertise around the premises of their competitors - a practice known as “conquesting“ in advertising jargon.

In an email to Screenwerk, Monica Ho, Chief Marketing Officer of xAd reveals that “Of the national advertisers that are leveraging place-based targeting, which is 67% of national advertisers who run on our network, 9 out 10 are doing conquesting.“

Metrics and insights provided are based on xAd’s network and campaign data (January 2012–December 2012) from over 1.5 million advertisers.

See the full report here.

Monday, March 11th 2013

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