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Local Advertising: Mobile Ads and the Future

October 14, 2013

mobile-adsWhat if you were standing in front of a pet store and your phone starts to vibrate. When you look at the screen, you don’t see a text message, email or even a site notification. But instead, you see an advertisement for the pet store that you are standing in front of. The store has good discount on some pet food.

There are all types of ads available such as device, interest and keyword based ads. Now, location based ads are being added to the mix. There are over 700 million GPS phones in operation and they use location based advertising, which is the new wave.

The funny thing is that this type of advertising has been utilized for the last ten years. GPS has been popular since Google Adwords came on the scene.

As a result of geo based IP databases, most online advertisers have some kind of location based advertising plan. You will have good results if it is used correctly, which is ultimately a good thing for the future.

Research shows that users deal better with ads that are for local businesses. The conversion rates are higher when the ads are locally based.

But then again, there is a lack of interest when customers are too close to the companies that are placing the ads. It has been proven that the conversion rate is greatly reduced when a company is only about a mile away.

A lot of this can be as a result of the goal. Besides, when customers are that close by, they might not need to see ads to buy products. But, then again, it could be about precision or a lack of it.

One thing that location based advertisers have to deal with involves not having the right location information. Even though almost 75 percent of smartphones utilize GPS, only ten percent of mobile impressions can use GPS information.

As a result, location based advertising is getting more and more exact, considering that the GPS latitude and longitude is easier to get. This means that location based advertisers don’t have to stick with the regular types of marketing.

Since click through rates of 3 to 4 percent can be obtained, amounts as high as four times as much can be obtained.

Since smartphones are on the rise, more people are getting GPS smartphones. Location based ads will have two good choices, which is more positive than going after a larger group of people.

That should be a good thing. Location based ads are getting more exact and mobile users are growing in numbers. Mobile CPCs are the same, which means that you cannot ignore how beneficial location based ads can be.

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