21 Aug 2014: The Year of Hyperlocal Mobile Advertising
The headline is bold, but yes, 2014 is the year of hyperlocal mobile advertising, and there are three very important trends converging today to make this happen. The first is smartphone proliferation; according to eMarketer, smartphone users worldwide will total nearly 2 Billion in 2014. The second trend is the current boom in consumer adoption (and comfort level) of location-aware apps. A recent PuchTab survey of more than 1000 consumers revealed 88% of survey participants said they would share their locations for coupons and offers; 72%, for shorter checkout times; and 69%, for targeted alerts about sales and products they like. And finally, Ratko Vidakovic sums up the third trend nicely in a Marketing Land post:
“When you combine this with the ability to purchase ad impressions individually, through programmatic ad platforms that are powered by real-time bidding, marketers now have a cost-effective way to engage their audiences in a manner that matches ads to the context of their physical location.”
2B smartphones + secure consumers + affordable ad buys = 2014, Year of Hyperlocal Ads
We at Retailigence are already starting to see the power of this huge opportunity in front of us. Here’s a brief example. As many of us experienced, severe winter weather had a huge impact on the economy this year. Freezing temperatures and mounting snow deterred shoppers from stepping outdoors. Many brick-and-mortar stores experienced steep traffic and sales declines.
But as soon as the snow hit the ground, one of our partners – a multinational department store chain – knew it needed a way to help guide its shoppers to items they needed during the storms.
Well acquainted with the happy convergence of the trends above and armed with Retailigence’s powerful database of local retail inventory and pricing data, the department store dynamically targeted mobile consumers in blanketed areas in real time with location-based product messages related to snow. The store promoted (1) snow tires, (2) car batteries, and (3) snow blowers, and allowed the shopper to instantly see which products were actually in stock in these three categories at their nearest store. For added convenience, the store also offered shoppers the ability to Buy Online and Pick-Up In Store (BOPIS), and had those items available for pickup within 15 minutes so shoppers could quickly head back indoors.
With hyperlocal ads and Retailigence’s local data, the store was not only able to increase foot traffic and drive in-store sales, but the company was also able to reach its customers at a challenging time with relevant information about the products they needed in that moment and where to find them nearby. Today, shoppers not only want to know where they can buy what they want, but also want product and store information readily available.
According to Robert Scoble and Shel Israel, the “Age of Context” is a result of 5 major technology trends converging: mobile, social, local, wearable, and Big Data. Together, these trends will generate personalized, predictive and assistive products. As depicted in the snow example above, one unquestionable element driving the Age of Context is hyperlocal advertising, and 2014 is the year brands and retailers are taking advantage of this massive opportunity to help them better engage with their customers and grow their bottom line.
To learn more about enhancing hyperlocal ad campaigns with real-time product location data, visit Retailigence at http://www.retailigence.com/ad-solutions/.