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RESEARCH, ANALYSIS & TRENDS
Due to increased transmission rates and in some cases Using location-based advertising is making this possi-
unlimited data volumes, video formats are also ideal for ble for brands by capturing those they want to speak to,
location-based advertising. since smartphones are becoming the norm. Businesses
can target users based on their GPS location with tailor
The traditional analysis of click rates falls short in loca- ads and offers, providing a contextual ad experience
tion-based and mobile advertising. Search rates, which that people, especially millennials, are becoming more
show the extent to which the advertisement was and more accustomed to.
viewed, and the visibility of the advertisement itself are
helpful, but reflect only part of the advertising impact. A The key types of location-based advertis-
meaningful determination of the ROI is only possible in ing (LBA):
combination with media costs, target group attainment,
and achieved contacts when evaluating the quality of • Behavioral targeting is based on a user’s actions
the environment. or geographical location that enable marketers to
send specifically tailored messages. By using this
It should not be forgotten that location-based advertis- technology, brands can work out the key character-
ing is only one part of the trigger chain, tailored as pre- istics of their audience such as whether they are
cisely as possible to the user, and must be integrated
into the broad marketing strategy to achieve the de- into fitness (frequent gym goers) or if they are reg-
ular travelers and tailor their ads accordingly. This
sired effect. A balanced marketing mix ensures that a can be taken a step further if used to target com-
high-reach advertising effect is attained in the target
group - and that goes beyond the mobile device into petitors’ customers.
the entire life and media world of consumers.
• Radius targeting allows you to display your ads to
Local dealers, that use various marketing strategies people in the direct vicinity of your store. Historical-
and formats, have the best chances of reaching new ly, businesses would advertise to a whole town in a
and existing customers. Location-based advertising can directory or on a billboard but now, they have the
be an important marketing channel for local retail, es- power to target those walking past their store
pecially since it steadily gains momentum. However, to which is a powerful way of capturing your audience
reach your own target group effectively, various factors in real-time. This can have a significant impact on
must be considered that ensure that the advertising their decision to shop with you.
displayed is perceived as relevant.
• Local search advertising is when you type into
Today, marketers target specifically on behavior and Google ‘restaurants nearby’ and you will be pre-
geographical location, since the key to any advertising sented with a map featuring pinpoints which indi-
campaign is to find the people who connect with the cate where they are in your area. You may also
message. have prices and reviews pop up which is all part of
local search advertising. With almost a third of all
mobile searches now related to location, brands
are becoming increasingly aware of the importance
of this channel and are investing budgets to ensure
they appear clearly on the map. These local
searches can also link to your business page,
which in turn helps to drive more traffic to your site
and generate enquiries.
• Geo targeting is helping businesses to be much
more strategic and target people in the vicinity of
their stores and, in turn, incentivize them to shop
there.
The desired effects, such as visiting a store or purchas-
ing a product, can only be achieved if the right combi-
nation of data and advertising formats is meaningfully
integrated into the overall marketing strategy. Certainly,
the definition of the appropriate KPIs and the continu-
ous optimization form the basis for success and guar-
antee to stay ahead of the competition. ◊
By Daniela La Marca
April 2021: Immersive Technologies in Marketing 13