In xAd’s Global Location Snapshot study we surveyed 574 ad agency representatives and marketing decision makers worldwide, to understand how they have come to know and use mobile, unique challenges that persist and their plans for the medium as the marketplace continues to grow.
North America is the current global leader in mobile advertising with $29.9bn in marketer budget invested in the medium this year alone. This continued shift in spend is driven by the market’s savvy smartphone users – topping 59% of the US population and 56% of Canada’s this year, and growing to 71% and 68% respectively by 2019. Mobile is a part of North American consumers’ everyday lives – with weekly usage reaching 627 hours. Consumer activity is driven by convenience, which is greatly impacted by where they start their search, whether at home, at work or on the go.
Alongside advanced consumer usage, marketers and agency leaders in the US and Canada have moved far beyond beginner utilisation of mobile. They understand the medium and its unique benefits. Creativity in both targeting technology and development of the ads themselves has increased consumer engagement with mobile and location, as well as boosting competition throughout the region and the world’s top brands (most notably in the retail category) for that attention.
Location as a key driver
To say that growth in mobile advertising in North America has been explosive over the past few years is an understatement. In fact, 46% of marketing and agency leaders in North America feel that mobile advertising is a significant or top priority in their planning. According to eMarketer forecasts, mobile display ad spending in Canada has increased 65% year on year, and 59% in the US, which accounts for 16.6% of the country’s total media spending this year, up 52% from 2014.
It’s clear the North American marketplace has advanced beyond the early days of mobile, where marketers were simply deciding between mobile search or display dollars. Consumer activity is increasingly focused on location: where they are, where they have been and where they are going. xAd’s Mobile Path to Purchase study has revealed how user location is an important element of the consumer path to purchase at all stages of the consumer journey.
When consumers start their research process with the help of mobile, 61% look for a location nearby and 52% look up directions to visit a local store. When considering their final decision, 52% visit a physical storefront to check out their options in person. Finally, more than half of mobile consumers actually complete their purchase in-store.
With these findings in mind, marketers are now shaping their strategies and budgets to focus on these location-centric activities. More than 70% of marketing decision makers and agency representatives leverage location-targeting in their mobile campaigns. By 2018, BIA Kelsey forecasts location-targeted mobile ad spend will account for 42% of total mobile ad spend in the US.
“Our ability to gather unique, location-based audience insights enables marketers and agency leaders to uncover new ways to reach existing customers and prospects,” says Brandon Starkoff, vice-president of global strategic partnerships at xAd . “Location strategies and targeting connect with consumers through the mobile channel and create personal value for them on behalf of the brand, driving meaningful business outcomes.”
- For an overview of the key trends and use of location-based marketing around the world, download the 2015 Global Location Snapshot
Annisa Teich is senior marketing manager at xAd
To find out more about the potential of location marketing, get in touch with the xAd team at contactus@xad.com
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