Retailer Geo-​Targeting is Rapidly Growing

Bricks and mortar stores have plenty of completion from online competitors and other enterprises in the local market. One way to get an edge on the competition is to court potential customers who mobile purchaseare in the immediate area. xAd, a mobile-​location ad platform, has just released its assessment of  geo-​targeting based on information its has been compiling from its clients and sees a bright future for this ad format.

xAd analysts report soaring growth from retailers who are seeking to connect with consumers. Retailers are now the top category of marketers using this technology, followed by the auto, banking/​finance, restaurants, and telecommunications sectors.

Another growing trend is geo-​precise targeting. Both local and national brands are interested in this option and xAd reports that 96% of its campaigns are now geo-​precise. The specific geo-​precise tools include:

  • Geo-​fencing: Establishing a physical boundary and then sending promotions to consumers who have opted in when they enter the boundary
  • Geo-​conquesting: Goes further than geo-​fencing and establishes a fence around a competitor’s perimeter. Once an opted-​in consumer enters the competitor’s zone, the marketer can email a promotion to try to win the consumer back
  • Targeting on search behavior: Show messages from marketers whose products and services match the consumer’s search activity.

When consumers use their phones as a shopping tool, 65% expect  a potential destination to be within 5 miles of their location. Once they see a message from a retailer, their most common reaction is to find out how to get to the store, by walking or driving.

As a result, more retailers are shifting the focus of their mobile campaigns. Instead of merely getting consumers to click through on their ads to learn more, they are trying to drive foot traffic to their physical locations. It is this type of activity that is likely to lead to higher revenue. Manufacturers are also joining in these types of mobile campaigns by showing consumers where they can purchase their products in the local market.

To learn more about Mobile Marketing Responders,  check out the AudienceSCAN report available on the Research Store at ad​-ology​.com.

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.