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Mobile location-based ads help advertisers improve targeting, up engagement and generate better creative—if the data they rely on is accurate, according to a September 2014 Thinknear/Telenav report. The firm defined “location accuracy” as the proximity of a user’s stated location per the ad request, compared with his or her actual location in the real world—which can vary by a matter of feet or even hundreds of miles—and called out assisted GPS as the most accurate source of mobile location, followed by Wi-Fi and cell towers. IP address ranked fourth, while user registration was the least effective.
Broken down by location, hyperlocal campaigns grabbed the largest share of accurate ad impressions served in the US in Q3 2014, at 46%. This was up from 34% in Q2 2014, at the expense of regional and multiregional ads. Local campaigns held steady as national impressions increased their piece of the mobile location accuracy pie.
Research released in July 2014 by xAd and Telmetrics, based on February and March 2014 polling by Nielsen, indicated that mobile users were pretty fond of location-based ads. The majority (51%) of US mobile device users agreed that they liked mobile ads with geographically relevant info, compared with 36% in 2012, while 19% disagreed, down from 31% in 2012.
It makes sense, then, that advertisers are expected to up spending on mobile location efforts as they aim to improve the accuracy of their location data and give consumers the ads they want. In April 2014, Berg Insight estimated that spending on mobile location-based ads and marketing worldwide would rise from €1.2 billion in 2013 ($1.6 billion) to €10.7 billion in 2018 ($14.3 billion).
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