AN INTRODUCTION TO HYPERLOCAL MOBILE DISPLAY ADVERTISING. How to Maximize the Chances of a Click on Mobile Display Ads. September 2013 Mediative.

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1 AN INTRODUCTION TO HYPERLOCAL MOBILE DISPLAY ADVERTISING How to Maximize the Chances of a Click on Mobile Display Ads September 2013 Mediative.com 1

2 About Mediative Mediative is a digital marketing company providing performance services and access to media platforms. Organizations who want to significantly enhance their digital presence and influence buyers turn to us to help generate revenue by quickly moving their targets from awareness to purchase. Location and research-based data fuels our insight, which we leverage across our consultative performance services, online properties, and location-based marketing platforms in the dynamic digital world. With precise and unmatched knowledge of how shoppers and clients buy, we take a consultative and holistic approach, based on our people s passion for insight and results, to provide the outcomes you need now, and for the future. 2

3 Table of Contents INTRODUCTION 4 WHAT IS MOBILE DISPLAY ADVERTISING? 5 INCREASING THE CLICK-THROUGH RATE ON MOBILE ADS 6 WHAT IS HYPERLOCAL MOBILE DISPLAY ADVERTISING? 6 HOW DOES HYPERLOCAL MOBILE DISPLAY ADVERTISING WORK? 7 HOW DO I GET STARTED? 9 3

4 Introduction Mobile has changed the way we interact. Information is available at people s finger-tips, any time they want it. But according to BIA/Kelsey, while local mobile search volume will exceed its desktop equivalent, ad dollars will remain lower because advertisers aren t yet keeping pace with the growth of mobile local ad inventory (BIA/Kelsey, April 2012). The huge growth of local mobile search volume and inventory, combined with the slower investment by advertisers to invest in mobile advertising, means there is a huge opportunity for those companies that do include mobile advertising in their digital strategy. With an increasing number of people using smartphone and tablet devices to consume information online, mobile marketing is no longer an option, but a requirement of your digital strategy, and it influences all other marketing channels. Worldwide mobile advertising revenue is forecast to reach US$24.5 billion by 2016, up from US$9.6 billion in 2012 (Gartner, January 2013). North American mobile ad revenue will grow from US$3.1 billion in 2012 to US$8 billion in 2016 (Gartner, November 2012). Local mobile ad spend will almost double in 2013 to US$2.3 billion, before growing to US$7.2 billion in 2016 (BIA/Kelsey 2013). Did You Know..? 47% 89% 48% 46% of Canadians own a smartphone* of smartphone users notice mobile ads** of people have noticed ads while in an app** of people have noticed ads while on a website** * Ipsos Reid, January 2013 **Google, Understanding the Mobile Consumer, May

5 Back to the Basics: What is Mobile Display Advertising? Anyone with a smart phone who uses it to access apps or a browser will have been exposed to a mobile ad they appear as a small banner across the top or bottom of your mobile device screen (see example below). Mobile Advertising Challenges The problem facing advertisers today is that they are fighting for viewer attention on websites that have multiple elements distracting the visitor. With mobile advertisers specifically, there is very limited time to catch the user s attention, as with one scroll of the page, the ad can disappear. In the majority of cases, people visit a website with a purpose, and ads have to interrupt that purpose and be compelling enough for the website visitor to halt what they are doing, and click on the ad. For these reasons, many advertisers are experiencing low click-through rates and marginal conversions. Why are CTRs So Low? Let s look at an example. In this scenario the mobile user has the following demographic profile: Female Aged Located in Kelowna, BC, Canada This is an ad that the user sees on While many people visiting this website might require contact lenses, our mobile user is not one of them, and therefore she has no interest in clicking on this ad. Furthermore, given the irrelevancy of the ad, it was likely highly frustrating. The ad at the bottom of the screen would be more appealing: First of all, it is using the user s broad location (Kelowna, BC) and is also providing her with an offer at an appropriate time (early September). The problem is that she is at work in the business centre of the city, and she is not even remotely interested in golf, therefore she will not click on this ad. Even when ads are matched with demographic content, they can miss the mark. Let s assume our mobile user does enjoy playing golf, the ad would resonate better with her if she wasn t at work. But as she is not able to take advantage of the offer, it might simply irritate her. Mobile advertising in general has very low click-through rates (CTRs). The average CTR on a mobile display advertising campaign in Canada is 0.57% largely for the reasons outlined above all too often, the ads are not relevant enough to the user s exact moment in time, which is constantly changing throughout the day. Mobile display ads do, however, have significantly higher CTRs than desktop display ads which have an average 0.07% CTR. This can be attributed to several factors: 1. Mobile screens are much smaller, and it s easier for the eyes to take in the entire screen in a glance. 2. Ads are not competing with as many elements on the page for attention. 3. Fat-finger syndrome: a portion of the clicks will be accidental. 5

6 Increasing Click-Through Rates on Mobile Ads There are several best practices that can help to maximize the chances of getting a click on your mobile display ad. Make 1your creative design stand out. Your ad will be competing with several other components on the screen for the user s attention. You have limited space, visibility, and size, therefore keeping the ad to the point is critical. Test different ad messaging. Ensure 2 your ad messaging speaks to the various audience segments that are going to see it. Consider testing multiple ads on a single audience segment to see which perform better. Create a compelling call to action. 3 To win the conversion, tell users why they should click on your ad. What is the immediate benefit to them? Words such as buy now, discount, call now or free will tempt users to click on your ad. Bright colours and clickable shapes are essential. Get 4hyperlocal with your ads. Keep in mind that site users are only likely to click on the ad if it matches their intent. If a campaign s goal is to generate sales through display advertising, you should ideally only be targeting web users who have demonstrated an intent to buy. What is Hyperlocal Mobile Display Advertising? Hyperlocal display advertising takes mobile marketing one step further, allowing businesses to target consumers as they move through different locations and environments, at different times of the day. Ads become more effective as the creative messaging is increasingly aligned with consumers changing needs and (subsequently) intentions relative to the changing environmental ones. Targeting users with the same golf ad mentioned before when they are in residential areas, early in the morning, or on the weekend when they are planning out their day, would be much more likely to garner a qualified click don t waste impressions (see definition below) on people in business districts when productivity and efficiency goals are top of mind. Hyper-relevant mobile display ads are the most effective and cost efficient way to reach the smartphone and tablet user. With a limited number of purchased impressions necessary in a targeted zone, hyperlocal ads yield better ROI than traditional display campaigns by converting ad dollars into higher CTRs which means more qualified traffic to your site. What Happens Beyond the Click? Ideally, once the user has clicked on an ad, they would be taken to a landing page that very clearly states a call to action (e.g. driving directions, call the location, visit the website) depending on the content of the original ad that won the click. Remember, content must match the intent of the visitor. Quick Tips: Providing several options gives the user a better experience as they do not have to convert immediately. Action buttons are going to be the most effective (such as call the business, visit the website, driving directions, etc.) and these also generate more insight for the marketer into what works and what doesn t. Did You Know..? The average mobile display ad campaign CTR in Canada is 0.57%. Hyperlocal advertising can achieve average CTRs in the range of 0.80% 1.10%. What do we mean by Impressions? When we talk about impressions, we are referring to the number of times an ad is shown to a user, whether it is clicked on or not. The key with impressions, in a hyperlocal advertising sense, is that the impressions are to relevant, targeted website users, browsing the web or apps on their mobile device, and therefore we know their exact location at the time of the impression. 6

7 How Does Mediative s Hyperlocal Mobile Display Advertising Work? 1. With its access to local business listings (business names, addresses, and latitude/longitude maps) via the Yellow API, Mediative has aggregated an exhaustive list of locations where like-minded consumers have similar interests and, subsequently, purchase intentions. These Lifestyle Zones are exclusive to Mediative. 2. When designing a campaign, Mediative identifies which creative message (via a 320x50 banner) should be delivered to a specific location, at a specific time of day, and specific environmental conditions (e.g. weather, traffic). 3. Looping in API data feeds from weather and traffic services, Mediative can tell you when a snow storm is coming, or where a traffic jam is happening and then deliver relevant messages that are dynamically adjusted based on these factors. 4. When all the demand criteria match (environment, location, time) Mediative pushes a call for demand via a demand-side platform (DSP) on the ad exchange. 5. A mobile publisher puts their inventory onto a mobile ad exchange via a supply-side platform (SSP). When the demand criteria and the supply information match, Mediative places a bid in the ad exchange for the given impression, and wins it when the bid is highest. 6. Given that this all happens within real-time microseconds, the user effectively sees the ad as s/he loads a mobile app or mobile webpage seamlessly. 7

8 How Does Mediative s Hyperlocal Mobile Display Advertising Work? Mediative s Exclusive Lifestyle Zones target people when they want and need your offer. Below is an example of Mediative s Hotel Lifestyle Zone. All Lifestyle Zones can be viewed at: hyperlocal-display 8

9 How Do I Get Started With Hyperlocal Mobile Display Advertising? Getting started is easy. Contact your Mediative rep to work on the following: Identify 1 where your customers are, at what time, and when they want and need your product or service the most. 2 3 Provide a list of business locations to Mediative. Develop messaging that identifies how your product or service fulfills the customer s need in that exact moment and location. Mediative will create the banner ads for you! Within 410 days, your campaign will launch, and your banner ads will be pushed onto apps and websites that are loaded by smartphone users within the stipulated locations, environments, and times. 9

10 Hyperlocal Mobile Advertising Success Stories Using Hyperlocal Mobile Display to Drive More Relevant Traffic: Find out how Mediative delivered CTRs that were over 3x higher than the industry standard. Display Drives Leads: How Mediative pinpointed people in the market for new housing within a relatively small community. Specific Audience Targeting Generates 40% More Qualified Leads: Driving qualified leads, and generating more clicks with fewer impressions. Hyperlocal Mobile Success - Generate Better Audience Targeting: Targeting all Canadian smart phone users within business districts, during business hours. Questions? Ask One Of Mediative s Digital Marketing Strategists info@mediative.com Mediative.com September Info@Mediative.com