Shoppers and marketers have spoken: both see the retail category as a major player in location, with one-third of online retail shopping deriving from mobile.
During their retail-related research and decision process, consumers are searching for and interacting with locations at every turn. xAd’s Mobile Path to Purchase study found that 25% of mobile retail users now leverage their device all the way through the purchase process. So what are they searching for? One in four smartphone users considers proximity to a retail location the most important factor in their research, while 53% expect those locations to be within five miles of them. But here’s the clincher: 77% of smartphone users that conduct retail research on their device actually complete a purchase in-store, at the physical locations they were searching for.
According to eMarketer forecasts, more than 50% of total media spend by retail brands this year will be in mobile. Within that mobile budget, 15% of marketers and agency reps in North America see location as a top strategy for their retail clients and campaigns. Retailers are developing location strategies and tactics that go beyond engagement in-device, but drive consumer interaction at physical storefronts.
In 2014, sportswear company Columbia wanted to promote their Omni-Heat jacket and entice shoppers to experience the product in person. “Mobile, especially combined with location, can be an extremely powerful tool for not only raising awareness but bringing people into your stores,” said Juli Johnson, associate media director at BSSP. “Highlighting Columbia’s innovative technology and product paired with details on the nearest retailer, we were able to drive even more relevance to the consumer and support retail partners.”
Philips’ SlimStyle bilingual campaign leveraged proximity targeting. The ads focused on the area immediately surrounding home improvement retail locations where the Philips SlimStyle light bulb is sold. “Running an international mobile campaign can seem daunting, but xAd was able to provide a clear cut strategy, with the technology, reach and performance to make this campaign successful,” said Victoria Sorina, planning supervisor at Carat. “Our target audience was accurately identified and engaged in Canada, proving that mobile location is truly a global solution.”
Forecasting marketplace growth
When asked what they consider the biggest recent development in mobile advertising in the Global Location Snapshot, 22% of marketers and agency reps named accurate location targeting. It’s clear location has made a major impact on the North American marketplace and will continue to impact ad planning, strategy and technology in the coming years. As ad spend continues to shift toward mobile, a focus on reaching savvy consumers with location targeting will remain top of mind, not just in mobile, but throughout all mediums.
“Location capabilities will become more pervasive and technology will allow greater connectivity to other location-based mediums such as outdoor billboards, digital features, local events and in-store experiences,” added Starkoff. “This will allow marketers to enhance brand experiences by customising based on the context of location, time and environment in a way that wasn’t possible or thought of before.”
With this location-powered focus on all their efforts, marketer mindset will expand beyond the confines of mobile or mobile-location, but toward a new media category in simply location.
- 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
This advertisement feature is brought to you by xAd, sponsors of the Guardian Media Network’s Future of advertising hub.
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