Both Facebook and Google have been making a lot of noise in the past few months about maintaining a focus on local brick and mortar businesses. With mobile being so pervasive, and harnessed with GPS tracking to boot, hyper-local has become the topic du jour.
In fact, just a few short weeks ago, Facebook announced the launch of hyper-local advertising that allows brick and mortar establishments to target ads within a certain distance from their stores.
Facebook also allows for native ads, which tend to get a better response from consumers. Combine native advertising in the social sphere where detailed information about ‘passion points’ and brand preferences run rampant, and you can see where the opportunity lies. Add this to the advantage of real-time tracking, and you’ve got a phenomenal market for timely impulse purchases like fast food and retail shopping.
Getting down to the numbers
It’s no wonder that companies like Millennial Media, which offers exclusively geo-targeted mobile marketing, published their 3rd quarter revenue at $69.8 million with a year over year increase of 24.4%.
And their clients are doing just as well.
Millenial Media and competitors like MoPub have published some pretty impressive case study stats recently:
Hyper-local marketing on mobile
Let’s go back to this for a second.
Hyper-local marketing, combined with real-time notifications, could have tremendous advantages for both marketers and consumers.
A pizza joint can advertise a ‘no wait’ status for their line at a pizza joint, snagging hungry people out running errands that might otherwise not have been compelled to stop.
They can also add in special perks and streamline the buying process.
When you compare these methods to the more traditional billboards or mall advertisements, the potential savings for advertisers is astronomical. They can now advertise to the right person in the right way, and only pay for it when the ad is served to that audience.
Retailers may also be able to influence consumer behavior over time by driving purchase with say, meal promotions or a Sunday sale—and staff accordingly.
For brick and mortar shops, that could lead to a positive influence on overhead.
As you can imagine, that could offer savings that span well beyond just a company’s marketing budget.