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Mobile: Redefining Boundaries

We know it. We live it every day. Mobile marketing’s growth is not slowing as we move into 2017. All industry reports indicate that mobile is one of the fastest growing and most impactful drivers in connecting consumers where they live, work, and play. This can’t be ignored and certainly needs attention before others gain the attention you want and need as a brand, whether national or local.

Check out the facts.

  • Mobile’s overall U.S. ad spend (local and non-local) is estimated at $33 billion in 2016, growing to $72 billion by 2020, a 17% compound annual growth rate. (BIA/Kelsey)
  • Zeroing in on the location-targeted portion of that overall mobile ad spend, it will grow from $12 billion in 2016 to $32 billion in 2021, a 21% CAGR. That translates to 38% of overall mobile ad revenues today, growing to 45% by 2020. (BIA/Kelsey)
  • More than a third (37%) of US retail sales in 2016 were influenced* by mobile, which translated to $1.4 trillion in sales. (EMarketer)
  • O2O (online to offline) estimated spending at $4 trillion, while the mobile segment of that spend is just over $2 trillion. (BIA/Kelsey)

Numbers like these tell the story: for mobile marketing, a moment of transformation is at hand.

Why local matters?

According to BIA/Kelsey, one of the biggest mobile success factors is native thinking: building content, apps and ads that fit the device’s unique form factor, rather than porting formats from legacy media. Nowhere does this principle apply more than location targeting.

The smartphone’s location-tracking abilities and portability, combined with users’ transitory behavior, make location-targeted content a natural fit. Google reports that 30 % of searches have explicit local intent, while 76% of those result in a store visit within a day. For brands, looking to drive local traffic, this is your wish come true.

What else matters?

Here are some key best practices that marketers should consider as they plan their next mobile strategy.

  • Audience targeting: Master the art of using location data to build consumer profiles, which are then used as ongoing ad targeting triggers.
  • Format: Be diverse. Search, display, video, messaging and native-social (formats that are built “mobile first” or “mobile only) advertising will all continue to grow in its importance to reach the consumer directly.
  • Go beyond the click: As BIA/Kelsey states, the true mobile play is to drive measurable results to local businesses. That means content that captures their interest; and ad features – navigation, voice calls and bookings – that capture their actions.

Want to explore local mobile opportunities? Talk to one our digital media experts.

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