Digital advertising is the growth engine in the advertising economy overall, but within that story mobile advertising is driving the headlines. BIA/Kelsey forecasts that geotargeted mobile advertising will nearly triple from $12.4 billion in 2016 to $33.3 billion in 2021. This amounts to 45 percent of total mobile ad spending by 2021.
BIA/Kelsey and GroundTruth have released a report to analyze how location intelligence is coming into the marketing mix. The complimentary report, Making Location Intelligence Actionable for Partners, Brands, and Agencies, is available for download. Let’s examine a few takeaways here.
Mobile devices, apps, and location signals have disrupted both consumer and marketer use of digital media. Turn-by-turn driving directions, geofenced mobile ads highlighting preferred merchants to consumers passing along the sidewalk, discount offers based on mobile search history, and personalized ad messaging driven by your recent locations are commonplace. The ability to use mobile to generate consumer graphs that are richly textured and actionable for marketers has disrupted their expectations for mobile as a platform and therefore their investments in mobile.
A recent study highlights how using mobile location data has been “very” or “extremely helpful” in meeting goals set by 60 percent or more of marketers surveyed including improving campaign ROI, acquiring, and retaining customers, maximizing customer relationships, and increasing conversion rates.
Combine these findings with the chart below that shows results from a Mobile Marketing Association survey of how valuable and how often marketers make use of various types types of location intelligence.
BIA/Kelsey’s expectation is that mobile devices will continue to become even more powerful in terms of display, storage, processing, and data speeds combined with greater use of location intelligence from built-in GPS, beacon, WiFi, and other sensors. The attractions only grow for both consumers seeking personalized experiences and marketers who want to connect with these consumers in contextually powerful extensions of their brand. For a deeper dive into this subject, download the report now.