The sharp increase in the use of mobile devices is not only having an impact on online retail, but also offers local trade new opportunities. With location-based advertising, retailers and brands can deliver their messages and offers tailored to the user.Currently Eight out of ten Germans aged 14 and over use a smartphone and can therefore find out about products, services, offers and locations anywhere and anytime. David Lange, co-founder & managing director of adlicious, explains which factors lead to the success of a location-based campaign.
Great effect through relevance
In times of big data, advertisers have access to more data than ever before. However, this data must be properly analyzed and used for marketing activities to achieve the desired effect. Only when an advertisement is relevant — that means delivered to the right person at the right time, with the right content — can it have a positive effect on the user. Cinema visitors who receive discount coupons for sneakers from a sports shop without any reference to content are an example of how location-based advertising should not be used. However, if potential customers are in a competitor's store, a targeted approach makes sense.
Use the right ad formats
If the relevance-oriented approach is not taken into account, there is a risk that users will ignore the advertising or even be negatively influenced as a result. A recent Study by Appinio and Adzine shows that the target group of 16 to 24-year-olds in particular is difficult to reach with location-based marketing activities. The willingness to visit a retail store based on the use of mobile advertisements grows with increasing age. To ensure that advertisements are not ignored, appealing advertising material design through innovative formats is the solution.
Digital flyers
When creating, it is particularly important that advertising is not perceived as intrusive. Effective advertising formats in the mobile sector include interstitial ads. In addition, formats from the display area can be transferred to mobile. This includes, for example, the so-called digital flyer, which is based on a classic print brochure and can be visually prepared individually depending on the industry. Due to increased transfer rates and sometimes unlimited data volumes, video formats are also suitable for location-based advertising. The classic evaluation of click rates is not enough in location-based and mobile advertising. Viewing rates that show up to which part of the ad was viewed and the visibility of the ad itself are helpful, but only reflect part of the advertising effect. Only in combination with media costs, target group reach and actual contact dose achieved when evaluating the quality of the environment is it possible to determine the ROI in a meaningful way.
Wide-reaching advertising effect
It should not be forgotten that location-based advertising is only one part of the initiative chain — tailored as precisely as possible to the user — and must be integrated into the broad-based marketing strategy in order to achieve the desired effect. A balanced marketing mix ensures that a far-reaching advertising effect is achieved in the target group. And this goes beyond the mobile device to the entire life and media world of consumers. Local retailers who use and continuously optimize various marketing strategies and formats have the best chances of reaching new customers and existing customers. This allows them to position themselves strongly in view of the dominance of online retail.
Important marketing channel for local retailers
Location-based advertising is an important marketing channel for local retailers that is becoming increasingly important. However, in order to reach your own target group effectively, various factors must be considered which ensure that the advertising displayed is perceived as relevant. Only when the right combination of data and advertising formats is sensibly integrated into the overall marketing strategy can the desired effects be achieved, such as visiting a shop or buying a product. The definition of appropriate KPIs and continuous optimization based on them form the basis for success.
This post is first posted at Ecommerce magazine appeared.
