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Volume 1State of the MarketLocation Powered Mobile Advertising Report2012 Annual Review
Verve is the expert in locationpowered mobile advertisinggoals of this report›› Identify and define the principalstrategies and approaches tolocation-based mobile advertisingbeing leveraged by advertisers›› Provide some quantitative distributionof the relative utilization of thosedifferent approaches›› Show distribution across key industrycategories of location-based mobileadvertising›› Analyze performance data acrossthe location spectrum›› Provide examples of successfullocation powered campaignsUnique targeting technology, unique audiences,and high quality location data make Verve thekey partner for national and local advertiserslooking to leverage location data to make theirmobile advertising more effective.As the largest location-based mobile advertisingbusiness in the U.S., Verve serves many of theleading brands and publishers and offers the mostinsightful data sets for expert-level reporting onthe state of location-based mobile advertising.METHODOLOGYVerve has analyzed 2,500 mobile campaignsdelivered during 2012, most of which werelocation powered:››››››››››By strategy of location targetingBy industry/vertical or categoryClick-through rates (CTR)Performance by strategyCreative execution type2
Types of location poweredmobile advertisingLocation targeting enables advertisers to be smarter in how they place mediaso that impressions are not wasted in areas where the advertiser has little orno presence. Advertisers are targeting particular market geographies frommetro areas, sets of zip codes, even zip 4, to specific miles radius aroundparticular locations. They are also targeting audience segments where thesegments are built on location-based data.››Geo-awareGeo-aware campaigns use real-time location data to deliver specific,Success STORY // FINANCIALoften dynamic, messages to the user based on their distance from theMaking it epicnearest retail location or proximity to a particular location.Promotion:››Geo-fencingAdvertisers targeting users based on a set distance (often miles) from alocation of interest such as a store, or physical site where known audiences frequently visit. Consumers outside of the geo-fence would notbe served the ad because they fall outside of the location parameters.This technique is particularly useful for advertisers looking to drive foottraffic to physical store locations.››Location-based Audience Data TargetingAdvertisers targeting mobile users by leveraging anonymous thirdparty offline data such as demographic types, transactional orpsychographic attributes which are then coupled with high qualitylocation data to determine audience “clusters” by geographic area.››Place-based TargetingAdvertisers targeting users based on audience segments that are builtbased on a user’s location and time. Verve has worked with a thirdparty data provider, and more recently launched its own platform, thatCredit card sports affiliate programGoal:Increase program enrollment andbrand awarenessStrategy:Content and location targeting toreach football fans at premiersports venuesExecution:›› Rich Media›› Device Type (Smartphone iPad)Result:Football fans responded to this mobilecampaign with great excitementgenerating a CTR 5x higher than theindustry average.slices the entire U.S. into micro-grids and associates multiple datapoints to each grid. So, if an advertiser wants to target “soccer moms”Verve would recommend targeting location grids that score high forthat type of audience such as suburban supermarkets or playgroundsCTR:2.0%during school hours, on weekdays.3
Mobile campaigns leveraging location targetingoutperformed non-location targeted campaignsby a factor of 2xLocation Targeting by StrategyAs 2012 progressed, advertisers began to get moresophisticated in their targeting approaches, leveragingGeo-aware14%more geo-fenced, geo-aware and location-based audienceCityZip*4%6%targeting. In 2011, only 17 percent of Verve campaigns weregeo-fenced or geo-aware but in 2012, 36 percent of VerveDMA30%Geo-fence22%campaigns leveraged geo-aware or geo-fencing strategies.2xAudience**24%PerformanceIncrease* Zip includes Zip 4** Audience includes third party data and place-based targetingWho is using location powered advertising?Of the 2,500 mobile campaigns delivered on the Verve Platform and analyzed for this report, most utilized locationtargeting, which is not surprising as Verve’s focus is location targeting. The chart below shows the percent of campaigns runon the Verve Platform that were location targeted by advertiser industry/vertical. Advertisers with physical, brick-and-mortarlocations and those with inherently local products like real estate led in the percent of campaigns that used location targeting.Location Targeted Campaigns by VerticalGroceryPoliticalHealthcareLotteryReal avelFinancialConsumer GoodsConsumer Electronics0%10%20%30%40%50%60%70%80%90%100%4
Restaurants and retail led all advertisers in theuse of geo-aware and geo-fenced campaignsAdvertisers are increasingly using dynamic, location powered creative to facilitate traffic to the nearest retail or restaurantlocation. Consumer goods companies were also successful in driving mobile users to the nearest grocery or retail locationwhere their products are sold. Audience targeting is also a popular tactic, allowing an advertiser to focus only ongeographic clusters that index highly for their desired demographic .DMA / Zip / Zip 4RESTAURANTRETAIL7%Geo-aware or Geo-fencedAudienceCONSUMER 73%Success STORY // RETAILLocation is fashion-forwardPromotion:David Beckham BodywearGoal:Generate excitement around theDavid Beckham Bodywear line ata leading, global retailer. Drivetraffic to specific store locations,and participation in their mobilesweepstakes program.Strategy:Geo-fence around store locationsin San Francisco, Los Angeles,and New York. Audience andlocation-based audience targetingwas also applied.Execution:›› Dynamic›› Expandable›› Tap-to-Map›› Social Media IntegrationResult:Verve’s targeted mobilecampaign helped drivethousands of Beckham fansto select retail locations.CTR:2.3%5
Performance by locationtargeting strategyAll location-based tactics exceeded the industry average CTRs of 0.4percent. Geo-aware and geo-fence mobile programs led average CTRs.CTR by Targeting enceCityZipDMAAudienceSuccess STORY // GROCERYThird partyplace-basedaudienceCheers to locationIndustry avg. 0.4%Promotion:Not all mobileinventory is equalIn-store“Brewniverse” eventGoal:A clear trend in 2012 was the strong performance improvement ofcampaigns that incorporated location-based strategies. Equallyinteresting was the effect location had on campaigns delivered acrosspremium local media properties, highlighting the synergies betweenlocation and context.Both national and local inventory exceeded exchange-based inventory,which is known to be unreliable in terms of location quality, anywherefrom 3X-to-5X while holding location-based tactics constant.Strengthen this high-end grocer’s presence inlocal communities throughout Texas and raiseawareness of special products being promotedthrough in-store events.Strategy:Utilize dynamic, geo-aware mobile ads topersonalize messaging to users closest to thegrocer’s store locations.Execution:›› Expandable›› Interstitial›› Tap-to-MapImpact of Quality Inventory on CTR2.0CTR1.61.20.80.40.0Result:By combining effective creative with locationtargeting and by putting “user distance to storefrom location x” into the creative, KPI benchmarks were exceeded and the grocer continuedtheir mobile campaign with Verve through theholidays and into Inventory4.1%6
Beyond the click, users are engaging withbrands on mobile devices in many waysHaving clear and meaningful calls-to-action enticeuser engagement especially when coupled withlocation utility such as pointing out where a user isrelative to a store location.Interaction RateCalls9%Video4%Maps3%Calendar3%Social3%Success STORY // CONSUMER ELECTRONICSDriving foot trafficPROMOTION:Printer salesExecution:Goal:›› e-CircularIncrease awareness of aspecific printer brand amongconsumers and drive traffic tophysical retail locations thatsold the product.›› Tap-to-mapStrategy:Leverage multiple targetingstrategies to reach the rightconsumer who is in the marketfor a new printer at the rightplace and time.›› Tap-to-callResult:›› IntersitialOverall, the campaign was a success achieving thegoals determined by the advertiser. Expandableand mobile e-Circular executions were the highestperforming, with engagement rates exceeding theindustry average.›› Geo-aware expandables›› Utilize third party offlineshopper data to increaselikelihood of reachingconsumers in marketCTR:2.4%7
TechnologydrivenoptimizationAn important element of any mobilecampaign is being able to measure successand optimize in real-time. Verve hasdeveloped a proprietary heat-mappingtechnology that allows advertisers theopportunity to see where actionable mobileconsumers are across the 210 DMAs. Inthis example, we see where specific autointenders are in proximity to a leading automanufacturers’ dealer locations.Mobile leadership with a differenceVerve is the pioneering leader in location-based mobile advertising. Our customers are national brandadvertisers who want to engage consumers on their mobile devices with location-aware, data-driven and highlytargeted marketing.We also serve local premium publishers and channel partners across the nation, delivering the platforms andservices they need to power and monetize their mobile offerings.The Verve location powered technology platform and the proprietary data it generates are revolutionizing mobilemedia and advertising. It enables consumer and content brands to reach their desired audiences on the go, out andabout, and closer to the buying decision than ever before.Verve has been leading the way in location powered mobile advertisingsince 2005 and has offices in New York City, Washington DC, Atlanta,Detroit, Dallas, Chicago, San Francisco, and San Diego.For more, please visit:vervemobile.comLet’s connect:New YorkWashington DCSan Diego1450 Broadway41st floorNew York, NY 100181-800-595-08424701 Sangamore RdSuite N220Bethesda, MD 20816(760) 479.0055(760) 479.0056 fax5973 Avenida EncinasSuite 101Carlsbad, CA 92008(760) 479.0055(760) 479.0056 linkedin.com/company/vervemobileor you can contact us:insights@vervemobile.com 2013 Verve Wireless, Inc. All rights reserved.8
mobile advertising more effective. As the largest location-based mobile advertising business in the U.S., Verve serves many of the leading brands and publishers and offers the most insightful data sets for expert-level reporting on the state of location-based mobile advertising. Verve is the expert in location powered mobile advertising MethoDologY
