SXSW session notes: Location-based marketing

Spoken | August 9, 2016

Mobile advertising The session is titled Location-based Marketing and Advertising: Targeting the Mobile Consumer. The session was led by Shawn Gunn of NavTeq, the turn-by-turn direction service for mobile users and drivers. And the topic focused on powering navigation devices, mapping and social networking applications
with advertising. The idea is to help advertisers target consumers where they are when they are looking for information.

Key takeaway: the future of (mobile) advertising is local–getting local traffic to brick-and-mortar stores.

Fascinating stuff. Gunn started with some key facts:

  • Brands have been absent from mobile because positive ROI is hard to prove.
  • Over half the world’s yearly $458 billion advertising budget is spent on local advertising.
  • Mobile has a unique approach to advertising: use a pay-for-performance model, not a CPM or pay-per-click. This is possible due to tracking capabilities–advertisers can measure exactly who used a location-based coupon
  • Interestingly, 94% of retail sales are still through physical stores.
  • Consumers accept advertising in exchange for free content.
  • 19% of people who recall seeing a specific ad reported clicking through for information on nearby locations.
  • Goal of mobile advertising: drive traffic to brick and mortar stores.

Conclusions drawn from this session: because mobile advertising is easy to target, easy to measure, and location-based, it will be easy to apply, test, tweak and reapply. If mobile advertisers listen to users and track their behavior, that goal of ads being useful (versus annoying) can be reached.

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