Verve Mobile Reveals U.S. Trends in Location-Targeted Advertising

Verve Mobile Reveals U.S. Trends in Location-Targeted Advertising
Verve Mobile, the U.S. location-enabled ad network published yesterday an interesting report that give some insights on where the U.S. market stands in terms of location-based mobile advertising.

The report aggregates data from more than 2,500 campaigns delivered on the Verve network in 2012.

First Verve noticed that: “As 2012 progressed, advertisers began to get more sophisticated in their targeting approaches, leveraging more geo-fenced, geo-aware and location-based audience targeting. (Verve defines “geo-aware“ as ads providing specific messages based on distance from a particular location and “geo-fenced“ as targeting users inside a specific radius).

According to the ad network, “In 2011, only 17 percent of Verve campaigns were geo-fenced or geo-aware but in 2012, 36 percent of Verve campaigns leveraged geo-aware or geo-fencing strategies.“

DMA, City and ZIP code continues to represent together 40% of location targeting in 2012.

Vertical differences
When it comes to verticals, restaurants and retail companies are making the biggest use of geo-fenced and geo-aware mechanisms, closely followed by travel, consumer goods and telcos.

Audience targeting - which focuses on geographic clusters that offer a high proportion their desired demographic - is also favored by consumer goods, financial, auto and - obviously - political vertical campaigns.

Campaign performance
Verve Mobile noticed that “All location-based tactics exceeded the industry average CTRs of 0.4 percent,“ Not surprisingly the more targeted the campaign, the better the CTR (Click Through Rate).

The impact of audience targeting around 0.7% CTR is however smaller than

Quality of inventory
But Verve Mobile also points out that the quality of the inventory also has a strong impact on CTR. According to their experience, the difference between exchange-based inventory and premium inventory goes anywhere from 3X-to-5X while holding the same level of targeting. This seems to be largely due to the lack of location precision of the inventory bought from ad exchanges.

Download the full report from Verve Wireless here.

Thursday, February 7th 2013

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