LOCATION BASED PROGRAMMATIC ADVERTISING
Location Based Programmatic Display Advertising – an intro
It’s possible to serve ads on mobile phones only on/in specific locations. These locations are defined by geo-fences (circles) of as small as 25 meters (radius). Mobile phones can forward a GPS based location within an adrequest. This location can be as accurate as 10 meters.
In our geo-tool it’s also possible to (automatically) upload hundreds, thousands or even hundreds of thousands of addresses (based on zipcode and housenumber). We are not aware of any other geo-tool (within a DSP) that is able to process and actually serve on these huge amounts of addresses, within one campaign/line. The tool allows you to change the radius of all (!) these geo-fences in one time/with one action. It’s also possible to apply individual sizes for each geo-fence.
Problems and challenges
The functionality has some problems. For example; many of our clients ask us to serve a banner on their specific phone – by setting up a geo-fence above their company location. In many cases we are not able to show the client a specific banner. This situation significantly undermines the apparent abilities of serving of ads on specific locations.
Some reasons for a person not seeing a banner:
An active ad-blocker (in many cases a person is not aware of this and does not know how to disable it)
Active ad-blocker based on app preferences
The GPS location that the phone upholds does not ‘match’ the geo-fence
It is worth mentioning that although location transfer possibilities via browser (mobile web) are on the rise, a location transfer via an adrequest based on app traffic is - to date - still the most reliable method.
The fact that it is very hard to show a client a banner (based on a geo-fence ‘above’ his/her actual location) is problematic. You can even state the functionality (location based advertising) does not work. There are – however – possibilities to drastically enhance the possibilities of a client seeing an actual banner on his/her phone – when requested – and prove the technique works. For example, communicating the device ID of the phone in question enhances chances of seeing an ad (on that particular phone).
Luckily there is another method to prove the technique works. A method that we will describe in this case study.
One of our clients (an agency) had an unusual campaign objective. Their client, a care provider for elderly people, urgently needed 18 new employees. The agency asked us what we could do in terms of Programmatic Display Advertising. Because of previous successes with the following campaign strategy, we recommended to serve ads ‘above’ actual locations of nursing homes and other ‘care’ related companies, government locations and hospitals. The client agreed, and we bought an address list containing 12.526 locations/addresses that match those criteria. Usually these kind of address lists are not hard to come by.
We created banners (standard IAB and a rich media interscroller) and uploaded the list into our platform/geo-tool. We set-up geo-fences ‘above’ all these locations and upheld a diameter of 110 meters. It’s worth noting that this campaign was the only marketing method active for finding these 18 new employees. Secondarily we launched a campaign with the exact same ads/banners, but without Location Targeting. Hence, the ads where served in the entire Netherlands. Overall, we served 1.428.000 impressions during a 3-week period. The good news; the client received enough applications to fill all the 18 vacancies. There is more to it though.
The main line (serving ads on these 12.526 specific addresses/locations) realized a 0,72% CTR based on the standard IAB banners. A 1,56% CTR was achieved with the Interscroller format.
The landingrate for the IAB set was 74%, while the landingrate for the Interscroller was 56%.
As explained we launched a campaign with the exact same creatives, but without location targeting. These ads where essentially served in the entire Netherlands (again; no location targeting on specific addresses). The results were as follows:
A CTR of 0,23% for the IAB banners. The interscroller achieved a 0,82% CTR.
The landingrate for the IAB set was 44%. The landingrate for Interscroller was 36%.
What do these results tell us? Well, for starters that the banners served ‘above’ specific addresses/locations realized a significantly higher CTR. The same goes for the landingrate.
The CTR of the standard IAB banners WITH location targeting is more than 3 times higher than the CTR of standard banners served WITHOUT location targeting.
The CTR of the Interscroller WITH location targeting is almost 2 times higher than the CTR of standard banners served WITHOUT location targeting.
The landingrate of the standard IAB banners WITH location targeting is approx. 85% higher than the landingrate of standard banners served WITHOUT location targeting.
The landingrate of the Interscroller WITH location targeting is approx. 65% higher than the landingrate of standard banners served WITHOUT location targeting.
In turn, this tells us that the banners served WITH location targeting have a drastically higher CTR than the banners served without location targeting. Furthermore, the landingrate is higher within the Location Targeted campaign, while the landingrate within the campaign that is not targeted on any specific locations, is lower.
Apart from the actual filling of vacancies, these results prove that when ads/banners are being served on specific locations, and the apparent audiences present ‘in/on’ these locations have a higher interaction with the ads served (because they are relevant) – reaching audiences by serving on specific locations; works.
Reach out to learn more and/or to discuss what kind of Location Targeting options might help you reach your audience in better, more cost-efficient ways.