Originally published online: http://franchisingworld.com/taking-advantage-of-growth-in-local-mobile-advertising/
Originally published in the magazine: http://digital.olivesoftware.com/Olive/ODE/Franchise/Default.aspx?href=FWM%2F2014%2F05%2F01&pageno=52&view=document
Mobile advertising, unlike any traditional form of advertising, allows each view and interaction to be tracked, reported and optimized at the local level.
In 1965, Moore’s Law predicted that the power of computers would double every two years (exponential growth). Local mobile advertising is experiencing similar exponential growth due to the widespread use of smartphones. This is driving significant development of location-based mobile applications and the ability to measure this type of advertising.
In Nielsen’s latest survey of American consumers, it is estimated that smartphones account for 64 percent of all mobile phones used in the United States and that 80 percent of Americans recently bought a new phone or a smartphone.
Because of the extensive use of GPS-enabled smartphones throughout the United States, advertisers now have the opportunity to target those mobile devices based on users’ locations. This type of targeting is referred to as “geo-fencing.” Advertisers are now able to draw a virtual perimeter around a real-world geographic area and deliver their ads to that specific region. When a mobile device enters a geo-fence while using a location-aware smartphone, an advertiser can display an advertisement specifically associated with that geo-fence.
Mobile app usage increased 115 percent in 2013, according to Flurry Analytics, a top app-tracking company. This enormous increase provides a significant platform of opportunity for the use of location services that are included in the vast majority of today’s apps.
Mobile advertising is unlike any traditional form of advertising in that each view and interaction can be tracked, reported and optimized at the local level to provide the best brand experience desired for each brand or promotion.
The share of the overall mobile ad revenue attributed to location-based campaigns will grow from 37 percent ($1.4B) in 2012 to 52 percent ($10.8B) in 2017, according to BIA/Kelsey, a research and analyst firm.
7 Steps to Ensure Your Local Mobile Advertising Campaign is Successful
To entice a new customer to take an action, the promotion must be compelling. It must motivate the customer to want more information about the offer. Many times this promotion will include a significant discount or even a free product or service. As with traditional direct mail advertising, percentage of redemption is directly related to the perceived value of the offer. So, make the offer irresistible.
Tip: Remember to consider your customer’s lifetime value when deciding on the value of the offer you’re going to provide.
Target your campaign to a very specific location (geo-fence) since most customers buy from local businesses. The smaller your geo-fence the smaller the number of impressions you’ll receive. Another consideration is that you might experience increased frequency with your prospects if your geo-fence is smaller.
Tip: Most geo-fences are between a one- and five-mile radius around a specific location.
Noticeable banner advertisements are essential to success. Rich media and motion graphics get the highest tap-through rate of all banner ads. In most cases, banner ads with light-colored backgrounds are noticed more often than dark backgrounds.
Tip: Make sure to include the offer on the banner ad, as well as on the landing page.
Easy Landing Pages
Landing pages and expandable banners should be straightforward. At most, use three clear calls-to-action with the offer dominating the top and middle portion of the screen. Every landing page should be designed in a responsive manner, so it is visually optimized for any type of mobile device. This type of design and coding is very complex, but companies such as Bridgeline Digital have mastered the creation of mobile-optimized websites for franchise systems. A map/address or link to your Facebook page is an easy and popular secondary call-to-actions. Forms generally get very little interaction through a mobile device. Avoid forms if possible. Coupons are appealing and can be saved to images for use later. Use a short expiration date to drive a sense of urgency to take advantage of your promotion.
Tip: Some very successful landing pages use a short expiration date as a call-to-action to spark traffic.
Conversion Tracking (Redemption)
Measuring impressions, taps, secondary interactions and redemptions are important to understanding the value of and return on investment for your campaign. “Impressions” is the number of times your banner advertisement was viewed. “Taps” is the number of times your banner was tapped and also the number of times your landing page was viewed. “Secondary interactions” is the number of times your secondary calls- to-action were tapped. “Redemptions” is the number of coupons redeemed at your franchise location. Metrics about the campaign’s impressions and taps are provided by the ad network, secondary interactions are provided by the web analytics from you landing page and redemptions come from your point of sale system.
Tip: Discuss integrated analytics with your mobile advertising provider to understand your ROI, as well as what worked and what can be improved upon.
Franchise-Wide Campaigns and Reporting
Consistently branded campaigns are essential. Your campaigns in Seattle should be consistent with your mobile campaigns in Atlanta. Make it easy for your franchisees to take advantage of this new local advertising media by creating brand-approved campaigns that the franchisee can easily opt-into.
Tip: Weekly or monthly automated reporting for each location provides a huge benefit so franchise owners can make decisions and understand how their local campaigns are performing.
Continue to Test New Campaigns
As in all marketing initiatives, test new ideas continually, optimize proven successful ones and always measure results. By doing this, you will always create the best performing mobile advertising campaigns for your franchise brand.
Tip: Remember that mobile advertising isn’t just for offer-based promotions; many companies use this mobile medium to build local brand awareness.
Michael Boyer, CFE, is CEO of AdSmart Inc., a company that provides local mobile advertising for franchise companies and their franchisees. Find him at fransocial.franchise.org.
Sources of Information