Use of Geo-Precise Targeting Techniques Widespread Among Mobile Advertisers in Q2

August 15, 2013

xAd-Mobile-Advertiser-Use-of-Geo-Precise-Techniques-in-Q2-Aug201390% of national brand advertising campaigns employed geo-precise targeting (targeting areas that do not conform to standard geo-boundaries) in Q2, according to [download page] the latest quarterly report from xAd. While the study notes that these types of techniques are typically more popular during Q2 and Q4, the percentage of campaigns using them in Q2 represented a new high, up from 81% in Q4 2012 and 64% in Q2 2012.

The researchers highlight what appears to be a growing use of “geo-conquesting,” which they describe as “a form of geo-precise targeting leveraging a user’s current or past competitor visitation behaviors to target ads.” A popular use case is targeting a mobile user while they are near a target competitor, while another form targets users who have visited a competitor’s location in the past.

During Q2, 32% of geo-precise campaigns used geo-conquesting, up from 22% in Q1. The study cites a particular geo-conquesting campaign (a 5-mile “SmartFence” around other casual dining locations) from Outback Steakhouse.  The geo-conquesting campaign enjoyed an 11% lift in conversion actions, such as access to a store locator, demonstrating that patrons of other casual dining locations were encouraged to count Outback as a dining option.

The top advertising verticals leveraging this technique in Q2 were: restaurants; retail; financial services/insurance; travel; and gas and convenience.

Other Findings:

  • xAd’s locally-targeted campaigns achieved average click-through rates of 0.58% for targeted display and 9.1% for search, both above industry standards.
  • Financial services and insurance was the top mobile advertising category in Q2, as it was in Q1, followed by telecommunications, restaurants, retail, and auto.

About the Data: Metrics are based on xAd’s platform and campaign data (April – June 2013) from more than 200 unique national brand advertiser campaigns.

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