Mobile-location ad platform xAd has released its 2013 Year in Review Report, which outlines the most popular trends in mobile-location advertising in 2013. The trends are derived from the more than 400 billion location-verified ad requests on xAd’s platform last year.
The rapidly-growing retail category, which includes a wide range of shopping types – including brick-and-mortar stores – spent more on xAd’s platform than any other category in 2013, followed by auto (No. 2), banking/finance (No. 3), restaurants (No. 4) and telecommunications (No. 5). This is significant as retail was only the fifth-most popular category in 2012. This jump is indicative of the rapid growth of m-commerce in general, as more and more consumers turn to their mobile devices to make informed and immediate retail purchases.
XAd’s report also explores the continued rise of geo-precise targeting for both local and national brands. In 2013, 96 percent of xAd’s campaigns used geo-precise targeting, up from 81 percent in 2012. This included techniques like geofencing, geoconquesting and targeting on search behavior. The increased focus on precise geotargeting makes sense, considering consumers’ expectations when using their mobile device to aid in a purchase decision. For example, xAd’s Path to Purchase series (free; registration required), released last year, asked shoppers how close they expect a location to be when searching for information on their device and up to 65 percent said within five miles.
In 2013, the most popular post-click activities overall (a consumer’s first action after clicking on a mobile ad) were calls to a business. However, post-click behavior varied by industry. For retail, the most popular activity after clicking on an ad was to look up directions or maps to a store, demonstrating the power of mobile in this category to create foot traffic to brick-and-mortar locations.
“The rise of geo-precise targeting is a testament to how effective techniques like geofencing and geoconquesting are for driving customers to visit retail locations,” said Dipanshu “D” Sharma, CEO of xAd, in a press release. “This is particularly true for retailers, where consumers are often looking to make a fast transaction. By Q4 of last year, a third of retail campaigns on our platform had shifted focus away from click-through rate and towards a primary goal of driving in-store visits. This is a trend that we’ll continue to see grow in 2014.”
In Q4 2014, Columbia, the popular sportswear company, partnered with xAd to increase awareness around its Omni-Heat jacket and entice mobile users to visit a store to experience the product in person. Users were targeted in and around locations offering the jacket with a location-aware message. Post-click users were taken to a custom location landing page that showed contact details for the nearest retailer and one-click access to additional product details and map and driving directions. As a result, click-through rate was 52 percent above industry average.
“Mobile, especially combined with location, can be an extremely powerful tool for not only raising awareness but bringing people into your stores,” said Juli Johnson, associate media director at BSSP. “Highlighting Columbia’s innovative technology and product paired with details on the nearest retailer, we were able to drive even more relevance to the consumer and support retail partners.”
Download the full 2013 Year in Review Report here (free; registration required).