According to a new report from Forbes Insights, in association with xAd, location-based mobile advertising is fast becoming an important tool in reaching the right consumers. The Location: A Strategic Marketing Imperative report highlights the growing need for retail marketers to drive the offline experience without replacing it through an online strategy.
Location-based mobile ads growing in importance
Despite a rapid increase in smartphone adoption, 90% of retail transaction still occur in-store. Location enables marketers to send relevant messages to mobile users at the right time to drive their offline sales.
In addition, consumers are utilising their devices to demand immediate services through apps such as Uber, Tinder and Yelp. Location data is helping people change the way they shop, eat and travel right now. This means they are expecting in-the-moment, personalised and highly relevant experiences.
Angelique Krembs, VP of marketing activation, PepsiCo North America Beverages, says:
“Location is about serving up relevant messages to consumers where they can actually act on them, which is really powerful. In the days of TV-only, you were trying to influence consumers as they sat at home and hoped they remembered those messages when they went to the store. Now you can actually talk to consumers when they’re near your store, or influence them where your brands are present.”
Among key insights of the report, Forbes found that consumers who research products/services on-the-go, show greater purchase intent. They are 45% more likely to make a purchase within an hour compared to those at home.
For 44% of consumers, mobile devices are now prime devices in driving their purchase decisions. However, since 90% of sales still happen in-store, marketers should focus on enhancing the offline – online connection, instead of solely focussing on online.
Location data enables advertisers to tailor messages and offerings according to where consumers are or have been. It is further driven by the soon-reality to measure foot traffic from mobile ads. Predicting where consumers are heading after a purchase and studying their shopping behaviours are powerful indicators for ad personalisation and driving competition.
Monica Ho, CMO, xAd, adds:
“Marketers who rely only on search and social are neglecting a huge opportunity to tap into offline behaviors. Location data allows marketers to act on consumer patterns and needs in real-time, using relevant and contextual messaging. Bridging the gap between online and offline is the key to unlocking 90% of additional commerce opportunities.”
The mobile-dependent and demanding consumer presents a challenge, but also a great opportunity for marketers to deliver engaging ads. Location-based ads can help to identify and deliver campaigns on real-time intent. It helps to tap into precise moments of decision making to drive a more personal engagement.