The document discusses trends in mobile location-based advertising, highlighting the growth of location-targeting tactics such as geoaware, geofencing, and geoconquesting. It emphasizes the importance of consumer opt-in rates for accurate location data and notes that real-time location targeting can enhance ad performance. Additionally, the use of location history to segment audiences and the need for privacy considerations in data collection are key takeaways.

1. ©2014 eMarketer Inc.
Cathy Boyle
Senior Analyst
Top Trends in
Mobile Location-Based
Advertising
M A R C H 2 0, 2 0 1 4
sponsored by:

2. ©2014 eMarketer Inc.
Agenda
 Outlook on mobile-local ad spending
 Six degrees of location targeting
 Inventory availability: Balancing reach and
relevance
 Precision targeting tactics and results
 Location history
Twitter – #eMwebinar

3. ©2014 eMarketer Inc.
Location-
based ad
targeting
grew far
more
popular
worldwide
in 2013

4. ©2014 eMarketer Inc.
In the US,
spending on
local-mobile
advertising
is rising
rapidly and
will surpass
spending on
national
campaigns
in three
years

5. ©2014 eMarketer Inc.
Mobile ads can be targeted to standard
and nonstandard geographic areas
COUNTRY
STATE
CITY
ZIP
DMA, MSA
LAT/LONG
Six degrees of location targeting

6. ©2014 eMarketer Inc.
 IP location detection
A device’s location is derived in various
ways, with varying degrees of precision
Twitter – #eMwebinar Image source: http://tipzzntrickzz.blogspot.com/2010/07/how-to-track-exact-location-of-any-ip.html

7. ©2014 eMarketer Inc.
 IP location detection
Twitter – #eMwebinar
 A cocktail of signals
A device’s location is derived in various
ways, with varying degrees of precision
Cell Tower
Triangulation
Image sources: http://www.clker.com/clipart-cellular-tower.html, http://www.amazon.co.uk/Certified-Refurbished-Kindle-Dolby-Dual-
Band/dp/B00AG4KSG6 , http://stackoverflow.com/questions/6958695/displaying-progress-dialog-at-the-start-of-a-gps-application

8. ©2014 eMarketer Inc.
 IP location detection
Twitter – #eMwebinar
 A cocktail of signals
 Indoors: Wi-Fi, NFC and Bluetooth
Beacons (Bluetooth low energy)
A device’s location is derived in various
ways, with varying degree of precision
http://tech.mn/news/2013/12/10/the-nerdery-labs-apple-ibeacon/

9. ©2014 eMarketer Inc.
New York, NY
Precise latitude/longitude is required to
target nonstandard geographic areas
Peoria, IL
Twitter – #eMwebinar Building icons made by Adam Whitcroft from Flaticon.com
Sale
Sale
The cocktail of signals provides the most accurate lat/long data.
Inventory availability and campaign scale must be
considered when relying on lat/long.

10. ©2014 eMarketer Inc.
When targeting gets granular …
… it’s not always easy to reach a significant slice of
the population.
“Sometimes it’s hard to find meaningful inventory
when you micro-target.”
—Rory O’Flaherty, group media director at R/GA
“Once you start geofencing or radius targeting … it starts
to get a bit pricey. … It will limit the audience you’re
reaching.”
—Roxanne Gross, media planner for Neo@Olgilvy

11. ©2014 eMarketer Inc.
“We find between 18% to 20% of the inventory comes through
with accurate and validated lat/long for location points.”
—Monica Ho, vice president of marketing for xAD
“Because users have to give consent for an app to pass
along their GPS coordinates, hyperlocal inventory is on the
smaller side. It’s roughly 20% of what’s available.”
—Adam Soroca, chief product officer of Jumptap, which was
acquired by Millennial Media
10% to 20% of mobile display inventory
has ‘clean’ latitude and longitude data
“A lot of the location data coming through is erroneous. So
there’s a lot of scrubbing to do to get a precise and
accurate lat/long. Of all the inventory, 10% to 15% has
lat/long.”
—David Staas, president of JiWire

12. ©2014 eMarketer Inc.
The key to increasing inventory is
increasing consumer opt-in rates
Twitter – #eMwebinar
40% rarely
or never
give
permission

13. ©2014 eMarketer Inc.
Consumers need a compelling reason to
share their location

14. ©2014 eMarketer Inc.
Precision Targeting:
Tactics and
Effectiveness

15. ©2014 eMarketer Inc.
3 leading location-targeting tactics
 Geoaware
 Geofencing
 Geoconquesting
On the rise:
 Indoor targeting
 Audience targeting
via location-derived
insights

16. ©2014 eMarketer Inc.
Geoaware: Location is detected and a
location-appropriate message is served
Goal: Raise awareness of
Omni-Heat jacket and increase
foot traffic to participating retailers
Tactics: Served location-aware ads
with landing pages that carried contact
information and directions to closest
retailer
Case study published by xAd, 2013 Year in Review report.
Results:
CTR was 52% above industry average

17. ©2014 eMarketer Inc.
Geofencing: Targeting devices within a
specified radius of a particular location
Goal: Engage consumers when they were near a
Quiznos restaurant at mealtimes to increase
restaurant visitation
Tactics:
 Geofenced Quiznos restaurants and served ads to
mobile devices (and web-enabled vehicles) within the
geofence at specific times of the day
 Consumers who gave the ad a “thumbs up” received
an email with a coupon offer for the nearby Quiznos
“We measured performance through coupon
redemptions and were very happy with the
results.” —Susan Lintonsmith, CMO, Quiznos

18. ©2014 eMarketer Inc.
Geoconquesting: Targeting devices
within proximity of competitor locations
Case study published by PayPay Media Network
Quarterly Report, Q2 2013
Goal: Increase mobile traffic to
reservation bookings engine
Results:
 Average CTR: 0.95%
 CTR on highest engagement day:
2.3%
Tactics:
 Geofenced top-3 competitor hotel
locations, airports, plus Best
Western hotels
 Location-aware ads included
distance to nearest Best Western
 Booking engine was embedded on
landing page

19. ©2014 eMarketer Inc.
On average, geoprecise targeting tactics
deliver the strongest results
Twitter – #eMwebinar

20. ©2014 eMarketer Inc.
However, the power of proximity varies
by industry
Twitter – #eMwebinar
For some, ads served “in-store” can be far
weaker than ads served “near-store”

21. ©2014 eMarketer Inc.
The
clickthrough
rate is the
baseline
metric but
secondary
action rates
give greater
insight
into ad
performance

22. ©2014 eMarketer Inc.
Various methods are used
to measure foot traffic lift:
 Tracking the location of future
ads served to a device
 Consumer panels
 Device ID tracking to delineate
natural visitation from
ad-inspired visitation
Multiple solutions have emerged to
measure the impact on foot traffic
Twitter – #eMwebinar
Example solutions include:
 Location conversion index
(JiWire)
 Place visit rate (PlaceIQ)
 Store visitation rate (xAd)
 Foot traffic index (Verve Mobile)
Blind case studies suggest geotargeted mobile ads
generate a 2.5x lift in store visits

23. ©2014 eMarketer Inc.
Indoor targeting: On-location technology
is used to deliver messages
Wi-Fi
Near Field Communication (NFC)
Beacons (Bluetooth low energy, audio)
Image source: http://9to5mac.com/2013/09/27/ibeacon-briefing-what-is-it-and-what-can-we-expect-from-it/

24. ©2014 eMarketer Inc.
Will iBeacons be a boon for retailers?
“We did a pilot in the second and third quarters and it
was wonderful. The data was great. The ability for
us to drive traffic where we wouldn’t have had traffic
otherwise made us continue the exploration of this
technology.”
—Ryan Bonifacino, vice president of digital strategy for Alex and Ani
“Coming out of the gate, this technology is going to be
leveraged and driven mostly by large retailers who
already have their own apps and have the large
app audience.”
—Rob Murphy, vice president of marketing for Swirl

25. ©2014 eMarketer Inc.
Leveraging Location
History to Identify
Audiences

26. ©2014 eMarketer Inc.
More brands are using location history
to pinpoint audience segments
“Most marketers today are engaging in location-based
advertising through geofencing—targeting everyone in
the same areas, within a circle, with the same ad.
We’re targeting based on decisions
consumers have made in the past.”
— Tim Kraus, senior interactive manager for Quiznos, in a
June 2013 article published by Mobile Commerce Daily
To reach consumers while they were making lunch
plans, Quiznos leveraged location history to target
mobile users who had been to local restaurants
similar to Quiznos within the past 30 days.
Twitter – #eMwebinar Tim Kraus photo source: www.linkedin.com/in/timkraus

27. ©2014 eMarketer Inc.
Patterns of movement help marketers
identify and reach new audiences
Samsung found an audience of tech
enthusiasts by identifying mobile users who
had recently visited a list of electronics stores

28. ©2014 eMarketer Inc.
Knowing where a device has been
provides insight into consumer intent
Twitter – #eMwebinar
“The fact that a person has actually been to the Ford
Motor Co. dealership is a bigger indicator they’re
interested in a car than the person going to the Ford
website.”
—Scott Symonds, managing director of AKQA Media
“Location could change mobile advertising
the same way intent data changed desktop
advertising. Knowing a user walked onto a car lot is a
strong signal of intent and it’s a unique piece of data
that’s available only in mobile.”
—Jeff Frantz, vice president of mobile at BlueKai
Jeff Frantz photo source: http://www.linkedin.com/pub/jeffrey-c-frantz/13/922/240

29. ©2014 eMarketer Inc.
Greater data availability means greater
responsibility to protect privacy
“The more we can marry location
and audience, the better.”
— Jeff Gooding, director of consumer marketing at Ace Hardware
The challenge for data providers lies in parsing
the vast amount of historical mobile location
information in a way that is both useful for
marketers and respectful of consumer privacy.

30. ©2014 eMarketer Inc.
Three takeaways:
 Permission is paramount: Consumers need a
compelling reason to opt in and marketers need more
inventory with lat/long data. Increasing opt-in rates for
location tracking is critical to success.
 Real-time location targeting improves
performance: Knowing where a device is now enables
brands to deliver ads that are relevant to a mobile user’s
immediate surroundings.
 Location history provides valuable audience
insights: Knowing where a device has been can be
used from an analytics standpoint to pin audience types
to particular places and even build unique audience
segments based on visitation patterns.

31. The Leader in Mobile Monetization

32. OpenX Overview
Experienced Team Investors Accolades
Founded in 2007
300+ employees
Global Offices
LA (HQ), NY,
London & Tokyo
$150M+
Revenue in
2012
#7 Forbes Rank
Most Promising
Companies
#5 Deloitte’s Rank
Technology Fast
500™
Well-capitalized
$75M+ to date
Infrastructure
5 data centers
3 continents
5,000+ servers
History

33. Multi-Screen Monetization
Platform
Ad Server
Ad Exchange SSP
With OpenX, you have one ad technology platform to manage direct and remnant
inventory revenue across desktop, mobile and video

34. Mobile Monetization Platform
Multi-screen Ad Server Multi-Screen Ad Exchange SSP: Mobile Ad Network Mediation Mobile SDK for iOS & Android
• 300+ Demand buyers
• 250+ Billion ad transactions
monthly
• 12+ Billion bids/day
• 40K advertisers
• Set minimum prices
• Brand level whitelists/blacklists
• Ad Quality filters
• Private Exchanges
• Supports OpenRTB 2.1
• Supports in app, mobile
web and all operating
systems
• Easily integrate ads into
mobile apps and mobile
websites
• Serves display, native,
mobile, video ads
• All inventory competes in
one platform
• Operate off your own sub-
domain = Keep your data
• 20+ Ad Networks
• Not a point solution, reduces
impression leakage
• Optimize against all your
demand sources
• Super auction vs. sequential
selling
• Ability to block bad ads that
redirect to the app stores
• Ad format support includes:
interstitial, IAB/MMA banners.
Native, VAST pre-roll, Click-to-
action, Mobile Rich-media Ad
Interface (MRAID), Celtra, &
HTML5 ad units.
• Target multiple screen sizes and
display orientations and include
custom ad parameters using key-
value pairs.
• Configure event listeners and
view messages coming back from
the ad server in real-time.
• An optional Unity plugin allows
you to incorporate OpenX ad
inventory into your Unity 3D app.

35. Mobile Programmatic - Location based buying and selling
• In-app SDK allows the app
publishers to acquire GPS derived
location.
• Mobile Optimized Websites require
the user to opt-in to provide
location.
• App publishers that have location-
sharing capabilities can choose to
expose the latitude and longitude of
each impression into the exchange.
• True GPS derived lat/long location
data is one of the only things that
can give a publisher’s mobile
impressions a price boost.
• Buyers are seeking accurate
GPS derived location,
DeviceID and App ID.
• These parameters are passed
in the bid request in addition
to any other targeting
parameters.
• A bid request is sent from the
media exchange to the
advertisers. Afterwards, the
system of the advertiser
values the impression. If there
is positive feedback and the
impression is highly valued
including true GPS derived
location, the system places a
bid on the auction.
Ad Exchange
Supply Demand

36. ©2014 eMarketer Inc.
Q&A Session
Top Trends in Mobile
Location-Based Advertising
Sponsored by:
OpenX
You will receive an email
tomorrow with a link to
view the deck and
webinar recording.
Cathy Boyle
Learn more about digital marketing with an
eMarketer corporate subscription
Around 200 eMarketer reports are published
each year. Here are some recent reports you
may be interested in:
 Mobile Ad Targeting: After Years of 'Spray and Pray,'
Signs of Sophistication Appear
 Mobile App Marketing: 10 Tactics Used by Successful
App Marketers
 Cross-Platform Attribution: A Status Report on
Overcoming Select Attribution Challenges
 The Effectiveness of Geotargeted Mobile Ads:
How Location-Based Data Pumps up Performance
To learn more: www.emarketer.com/products
800-405-0844 or webinars@emarketer.com