Mobile advertising continues to pique the interest of retail marketers – and investors. Just today, end-to-end mobile marketing platform Swirl Networks closed an $8 million strategic investment round from Hearst Ventures to improve “microlocation targeting” to in-store consumers. Early brand users include Kenneth Cole and Timberland.
According to the “State of the Market: Location Powered Mobile Advertising, Deep Dive on Retail” report released by Verve Mobile, driving foot traffic to physical stores is the top objective for retailers leveraging location-based mobile advertising tactics.
Based on an analysis of data from more than 1,500 mobile advertising campaigns from 50 (small and large) brand customers over an 18-month period, Verve determined that location targeting for time-sensitive sales and promotional events was the No. 2 objective for retail marketers. The retail verticals most entrenched in location-based mobile advertising included big-box, consumer electronics and department stores, which placed ahead of grocery/convenience stores and home and specialty retailers in terms of adoption.
Although “geofencing,” or targeting placements to consumers within a certain geographic range of a retailer’s store, continues to gain steam, Verve data found that by combining geofenced ads with “geoconquesting,” or serving an ad to a consumer in close proximity to a competitor’s store, it yielded an average uplift in overall click-through rates of 30%, the company claimed. Across all campaigns, "location-verified data" (or data that underwent a latitudinal/longitudinal analysis of exchange inventory) yielded 1.04% CTRs as opposed to non-verified location data, which garnered a .23% CTR.
When retail brands combined geofencing with location-based audience targeting, there were more layers to mobile ads results. Macy’s, for example, wanted to generate foot traffic and drum up buzz and attendance at in-store events and grand openings. By geofencing store locations and deploying location-based audience targeting, the brand was able to determine insights like the fact that its sweet spot for mobile click-through-rates was within one to two miles from the physical store location. As a whole, significant drop-off typically occurred at a distance greater than six miles.
“Much of our larger, long-term retail partners are using a combination of both audience and geocentric location-powered advertising tactics and that’s where they’re seeing the greatest results,” said James Smith, CRO of Verve Mobile. “For audience targeting and demographic targeting, the combination of location and third-party demographic data is typically what we’re using.”
To prove the impact of advertising on a retail sale, for example, “we have access through third parties to credit card transactional data, scanner data, Nielsen Catalina data, which are good examples. I would bucket that into real, live transactional data.”
Smith added, “We find, in general, there is no silver bullet in location-powered advertising. It is very complex and it’s different for every advertiser for every campaign. In retail, you often have very short campaigns that are behind a particular promotion." For short-term campaigns, foot-traffic indexes could prove to be more useful than third-party transactional data, which would add more of a layer of richness over a longer period of time.
Email This Post