National Brands Thinking Local for Mobile23 Jan, 2013 By: Doug McPherson
CHANTILLY, Va. – National brands that avoid doing local mobile ad campaigns will leave serious money on the table, Mike Boland, program director for BIA/Kelsey's Mobile Local Media practice, told MediaPost.
BIA/Kelsey predicts local mobile campaigns will grow from $664 million in 2011 to $5.8 billion in 2016 – an annual growth rate of 54.2 percent.
Boland told MediaPost that national brands have begun to see a “clear increase in performance” for location-based targeted mobile ads. Adoption has been relatively slow until now, but Boland says he now sees signs of change coming from national advertisers.
One example: Millennial Media, the second-largest mobile ad network, reported last year that location targeting in mobile ads rose 53 percent year-over-year. A 2012 Balihoo survey indicated mobile local ad growth from national advertisers.
Boland said another network, xAd, shows mobile local display ad click-through rates of 0.72 percent, compared with a 0.1-percent mobile average, and 8.13 percent for mobile local search, compared with the 5-percent mobile average.
Even though CTRs offer measurement, Boland said mobile marketers should take a closer look at what happens after the click because there's a high likelihood an ad can generate a phone call or request for directions. "We know ads generate user intent, so craft the campaigns to include click-to-call links or an easy way to get directions for those that rely on foot traffic," Boland said. "It provides a tool to measure performance."
More than a third of search clicks measured by xAd resulted in at least one secondary action. Nearly 60 percent were phone calls, followed by 36 percent for directions, and 1 percent clicking to view more information about a business.