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This week saw a major new development in Facebook’s advertising offerings with the launch of their “Local Awareness” ads. Using geo-targeting, these ads will allow small businesses to target consumers within a specific radius of the location of their business with specific call-to-actions or offers. Location-based marketing is the hot new trend in mobile advertising, with spend in this area set to increase by 55% from $2.9 billion in 2013 to $4.9 billion this year, and reach $15.7 billion in 2018, according to figures from analysts BIA / Kelsey.
It’s growing so aggressively because it works. According to research featured in this IAB report, national brands that add local advertising to their campaigns see the average click-through-rate increase by as much as 400% (from 0.17%-0.67% average mobile CTR to +0.7% on average).
Location-based advertising adds a new dimension to digital advertising and is another example of how sophisticated and varied digital advertising formats are becoming. Looking around my office, in addition to my desktop computer, I have my laptop, iPad and smartphone near at hand. – all devices I use on a daily basis, all of which I have researched purchases and then bought on, and all of which I am served ads on.
From a brand point of view, it’s exciting to be able to interact – or at least maintain a presence – with a target audience as they move from one device to the next. But the proliferation of devices we use also presents a significant challenge in connecting the dots between the person using each device and their actions on each. Ideally, an advertiser would be able to see the complete brand interaction and path to purchase across each device used.
This new reality is why cross-device advertising is the new industry buzzword and why developing a strategy that is efficient, effective and measurable is key for any brand and business. This week Ad Age released a comprehensive report (available for download here) which provides a great overview of the current state of affairs and also provides insight into the challenges around effective cross-device targeting (for the time-starved, Digiday’s Q&A format report on cross-device tracking is an excellent round-up).
Here are the key takeaways:
If you would like to discuss how ARTÉMIA can help shape your 2015 multi-channel, cross-device marketing strategy, please get in touch. Together we can make these exciting technological developments work for you.
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