Monday, August 1, 2011

Geo-Location: The Key to Unlocking Mobile Value



Mobile smartphones have changed our lives.  Texting, social, weather, news and games at your fingertips when you are “on the go”.  Last year a Pew Research Center study found that 83% of Millennials (18-29 yr old) like to keep their phone within reach while sleeping.  A stat that I don’t find surprising at all, partially because it’s also my alarm clock.  Our phones are with us at all times, which means that the content and ads that we consume are also “on the go”.

For the first time a unique users’ hyperlocal geolocation is available for one-to-one marketing.  This is the holy grail of impulse marketing.  A city street corner targeted “buy now” coupon banner ad for coffee or some targeted item is the classic example.  Are marketers doing this now?  Is your business being left behind?  Can a store target every person that walks down their storefront street?

The quick answer is “no”, at least not at scale.  There are a couple of challenges that have staved off the adoption of this hyper-local advertising, namely that not all mobile ad calls are created equal. Normally, ad requests that come from standard mobile web browsing only contain the same level of targeting as a home desktop computer, gateway IP address.

Application based requests from platforms such as iOS and Android will contain city corner level GPS data only if the user allows the application.  This significantly reduces the scale that a marketer can leverage this hyper local targeting.  It’s also possible for a publisher to collect profile information such as address or zip code, but this won’t give you location of a user at a given moment. 

Even with this access to hyper-local, it’s difficult for marketers to effectively craft campaigns to leverage this at reasonable scale.  Most marketers are still buying on DMA basis and targeting platforms (iOS, Android, RIM, etc) and carriers.  Some publishers that have access to granular geo information are using mobile based ad servers to offer agencies very targeted campaigns, but this has not become accessible across the entire ecosystem.

Geo targeting is intrinsic to mobile advertising and will be a cornerstone to maximizing the value in this medium.  There will likely be a number of changes during the next year that will affect what publishers and marketers are allowed to do.  It is important that the partners and technology vendors that you choose to work with, allow you to leverage this information and provide you with the proper guidance on best practices.

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