Marketers to Increase Use of Geotargeted Display

Last month, I blogged about Forrester Research’s prediction that spending on online display advertising will reach $16.9 billion by 2014.  The Forrester study emphasized two characteristics of this media form which make it attractive – an easy-​to-​measure return-​on-​investment profile and the availability of a number of display formats. A third strength of this ad format, geotargeting, was recently highlighted by BIA/​Kelsey.

Long associated with online search marketing, geotargeting is a growing force in the display market. BIA/​Kelsey analysts believe that geotargeted display ad sales will grow from $1.183 billion in 2010 to $1.884 billion in 2013, which represents a 16% annual growth rate. A closer look at the numbers reveals that local advertisers purchase about 15% of geotargeted display advertising, currently. In 2013,  that ratio will jump to about 30%. What will drive this growth rate in local geotargeted display advertising? Analysts believe  SMBs (small and local businesses) will increasingly use geotargeted display to efficiently reach their potential customers.

Matt Booth, SVP and program director, interactive local Media, BIA/​Kelsey says, “[t]he effective strategy for companies like AT&T, ReachLocal, Yodle and others will be to use geotargeting to increase margins by shifting spend from paid search to geodisplay. Booth also notes that the ever-​increasing inventory of display options means marketers will be able to  cut costs even as they narrow their target audience.

[Source: Geotargeted Display to Grow 16% to $1.9 B in 2012, BIA/​Kelsey release, February 2010] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.