As if the recent hoverboard craze doesn’t spell it out for you enough, one thing is for certain: we are lazy. Ok, maybe not all of us. But we certainly love convenience! We want the quickest and most efficient way to get from point A to point B. And our purchase behaviors fall right in line. Advertising is adapting quickly to make sure we can get what we want, when we want it, while expelling the least amount of energy in the process.
This brings us to one of the biggest trends on the block: Hyper-local Mobile Advertising.
What is it and why is it so great?
Advertisers can welcome shoppers by geo-targeting them in real time with mobile advertisements based on search behavior and a variety of contextual factors, including time of day, weather, etc. It is an excellent tool for retail and restaurant brands that can base offerings around inventory, special prices, coupons, and even cool things like store openings and local events.
Awesome. How does it work?
Let’s say you’re in the market for ski boots and happen to be in the close proximity of a sporting retailer. The retailer could reach out to you via advertising while you’re in the parking lot or at a nearby location. Or, let’s say there is a local event in your neighborhood, like a marathon. And let’s say there is an energy drink brand sponsoring the event. The advertiser could use hyper-local targeting to ‘ride the wave’ in the days leading up to the marathon by pushing out ads for diet plans and training tips. The extreme relevancy created means there is a higher likelihood of click through on the consumer side. These examples show that hyper-local can work for driving in-store traffic/direct sales as well as targeted awareness as noted in the case of the energy drink.
Hyper-local ensures that brands can connect on a more personal level with their audience based on distance (geographical) as well as timely offers that apply to them right now – such as special offers that are about to expire.
Any pitfalls faced by hyper-local?
Attribution is imperfect. And privacy concerns are always prevalent. However, as many RFPs are now requesting it, hyper-local provides a great opportunity for advertisers to execute cost-effective and precise targeting. It is also more accurate than geo-targeting. Whereas geo-targeting methods rely on IP address info and cookie data that is largely based on registration information, hyper-local ensures that the residents of the targeted area will view the ad. Furthermore, the ad can reach residents that are currently out of the zip code, traveling, or at work – which is something that geo-targeting cannot deliver on.
Magnetic is an artificial intelligence company that uses machine learning to deliver smarter, faster, and more effective advertising. Our powerful AI platform continuously analyzes the attributes of over 350 million live user profiles alongside real-time inventory supply and bid opportunities to deliver highly performant audiences and profitable campaigns for our clients.