Spending Shifts To Location-Targeted Mobile Ads

MaxPoint, a marketing tech firm, saw 85% of its customers’ mobile ad spend focused on location-targeted ads during the 2015 holiday season (November 26 to December 25).

Mobile advertising also accounted for 57.7% of all the digital ad impressions served by MaxPoint during the same period, up from 30.6%  in 2014.

With location-targeted mobile ad revenues set to grow from $4.3 billion in 2014 to $18.2 billion in 2019, according to BIA/Kelsey, 2016 looks to be a pivotal year as budgets start to shift from non-location targeted ads, which accounted for 60% of spending in 2015), to those with location targeting or 40% of spending in 2015.

Companies like search marketing firm Yieldbot, which saw its first profitable quarter in 2015, are seeing their mobile business outgrow other portions of their company. (mobile accounted for 55% of Yieldbot’s revenue in 2015.)

As a result, Yieldbot has begun to focus on mobile location targeting to round out its offering.

MaxPoint customers see mobile advertising as a means to drive off-line actions, like visiting retail stores or test-driving cars. Location is also a valuable tool in determining the intent of consumers as they move through various physical locations.

However, location data must be accurate to do anything of value for brands and consumers. Stumbling blocks for the industry rest largely on inaccurate interpretations of data and a lack of accuracy standards within the market.

2 comments about " Spending Shifts To Location-Targeted Mobile Ads ".
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  1. Mike Greco from Indy App Systems, January 25, 2016 at 8 p.m.

    Way too much attention is still being focused on location. There are FAR more factors that go into the mobile ad optimization process. But at least we're seeing more resources and capabilities than ever before imagined in mobile advertising. You're seeing it with Yahoo's  developer suite (the Flurry acquisition was brilliant in this regard), you're seeing with social's biggest mobile ad player Facebook (their ad platform is firing on all cylinders), and you're seeing it with leading mobile ad networks like Airpush (their Optimizer Tool and  related resources are off the charts good -- http://www.airpush.com/introducing-share-of-voice-sov-the-latest-addition-to-airpushs-optimizer-tool/).  Everyone who has found success in mobile advertising is paying very close attention to mobile ad optimization. It's about more than location!

  2. Reuben Chng from Mobile Ads, August 15, 2016 at 5:58 a.m.

    Location targeted mobile ads sure is an amazing way to target customers, especially also when advertising for real estate. More on that in this blog post:


    Giving the buyer a great ad experience is important on a mobile, so that they don't just close your ads. Great points on this article.

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