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Location aware ads consumer engagement tops 11%

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Location-aware ads guide mobile users to advertised merchant locations, reaching engagement levels of over 11%.

Location-based advertising is a new form of advertising that integrates mobile advertising with location-based services. The technology is used to pinpoint consumers location and provide location-specific advertisements on their mobile devices.

According to Bruner and Kumar (2007), “Location-based advertising refers to marketer-controlled information specially tailored for the place where users access an advertising medium” (Wikipedia)

The location aware ads campaign results exemplify the power of location when combined with search. LocationPoint is the way to reach consumers when they're in a mindset to buy. Photo courtesy of Rotorhead

The location aware ads campaign results exemplify the power of location when combined with search. LocationPoint is the way to reach consumers when they’re in a mindset to buy. Photo courtesy of Rotorhead

Location aware ads debut on Poynt location-aware apps

NAVTEQ’s announced the results of its first hyper-local ad campaign targeting millions of users of the Poynt application. Poynt is a convenient and timesaving GPS-enabled application that connects consumers to local businesses, people, restaurants, movie theaters and gas prices at the moment they want to buy or acquire products or services.

In a series of highly-targeted campaigns, NAVTEQ LocationPoint delivered location- and contextually-aware ads to Poynt users actively conducting related searches.

The maiden campaign featured location aware ads for gas stations and restaurant brands all over the United States. All four campaigns performed three to five times better than the industry average* click-through rate (CTR) of .49 with an average CTR of 2.68% across campaigns. Post-click user engagement ranged from 4.49% to as high as 11.25%, depending on advertiser.

The campaign results exemplify the power of location aware ads when combined with search. Definitely, this is the way to reach consumers with intent to buy.

“The combination of location and contextual search proved extremely effective in this series of campaigns,” said Osis, CEO, Poynt Corporation. “The results underscore the value to our users as well as to potential advertisers.”

LocationPoint from NAVTEQ is a location-based mobile advertising network that delivers location aware ads to smartphone users when they’re in the proximity to go, buy and shop at advertised merchants. These location-aware ads guide users to advertised merchant locations.  Brand advertisers can reach a large-scale audience, actively engage consumers near points of purchase and route them their advertised brands and merchants. They can also obtain metrics that measure return on investment.

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Mobile Location-Based Services Market to exceed $12bn by 2014

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The combination of smartphone proliferation, a surge in application storefront launches and new developments in hybrid positioning technologies are expected to help drive revenues from mobile location-based services (MLBS) to more than $12.7 billion by 2014, according to a new report from industry analysts at Juniper Research.

Advertising is likely to form an increasing share of MLBS-related revenues over the next five years

Advertising is likely to form an increasing share of MLBS-related revenues over the next five years

The Mobile Location Based Services report found that while MLBS had experienced in number of false dawns over the 2000-2007 period, improvements in handset user interfaces – exemplified by the iPhone – together with easier consumer access to an array of app distribution channels had led to greater interest from service providers in providing MLBS applications. In addition, growth was being further facilitated by the deployment of high capacity network infrastructure and attendant increases in mobile Internet adoption, providing greater opportunities for browser-based services.

Furthermore, the Juniper report noted that advertising was likely to form an increasing share of MLBS-related revenues over the next five years. According to report co-author Dr Windsor Holden, “Location-based applications are extremely interesting for brands and retailers in that they allow those companies to direct consumers to outlets in their vicinity while simultaneously providing information about the products on offer. When these are allied to measures such as mobile coupons and vouchers, you have the combination of information and financial incentive which can be compelling for consumers.”

Other findings from the Mobile Location Based Services Research include:

  • Improving the user experience of MLBS on feature phones will be key in driving usage beyond the core smartphone base
  • Despite the confluence of factors driving growth, deployments may still be affected by constraints including privacy and information security
  • While service usage will be highest in Far East & China over the next five years, greatest revenues will come from Western Europe

About this study

Juniper Research assesses the current and future status of mobile location-based services based on interviews, case studies and analysis from representatives of some of the leading organisations in this critical area of the mobile industry. Whitepaper and further details of the study ‘Mobile Location Based Services: Applications, Forecasts & Opportunities 2009-2014’ can be freely downloaded from http://www.juniperresearch.com.