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A Five-Mile Radius Is All It Takes For Effective Mobile Ads For Retail, CPG

Quick Serve Restaurant ads can be targeted as far as 10 miles away, says NinthDecimal.

80 percent increaseConsumers are increasingly “mobile-first” when it comes to making offline purchasing decisions, as a NinthDecimal industry report found shoppers were twice as likely to research new products and brands on a mobile device last year versus 2013.

The report also shows that while self-identified “mobile shoppers” still prefer to make most of their purchases at retail locations, the amount of purchasing they’re doing is shifting to e-commerce and m-commerce.

Specifically, in 2013, 34 percent of consumers shopped for goods and items on their mobile device before purchasing. Of that 34 percent group, 58 percent completed that purchase at a physical store. A year later, 54 percent of people browsed for products on their mobile devices, but only 47 percent of those shoppers were led to a brick-and-mortar location.

Those numbers suggests two things: consumer spending is shifting to mobile, though in-store remains the dominant destination for shopping. For the most part, laptop-based e-commerce has remained under 20 percent of all purchases between 2013 and 2014.

But the primary takeaway is this: local businesses without a clear omnichannel strategy are likely to lose out to rivals who do offer digital options to complete a purchase.

NinthDecimal's David Staas
NinthDecimal’s David Staas

“With mobile, now the first screen for consumers and mobile media consumption, on the rise, the need to understand what’s working in the mobile ecosystem has become critical for marketers,” said David Staas, NinthDecimal president. “In our latest report, we looked across the points at which mobile influences the purchase path, sharing insights and best practices from engagement to conversion.”

Overall, NinthDecimal’s report also demonstrated the growing effectiveness of mobile advertising generally, and of geo-targeted ads in particular.

For example, mobile ads on behalf of Retail and Consumer Packaged Goods marketers showed the best performance when served to people within five miles of a brand’s physical location. To put that in context, ads tied to store visitation lift did 24 percent better than the average clickthrough rate, an indication that CTR is not the best metric for online-to-offline advertising.

In the case of Quick Serve Restaurants, the geo-targeted ads offered the greater return on investment when smartphone users were situated within five-to-10 miles from the intended business.

Average Time to First Visit Index: Q4 Retail Campaigns (Store Visits by Day Following Ad Exposure vs. Avg. Visits)
Average Time to First Visit Index: Q4 Retail Campaigns (Store Visits by Day Following Ad Exposure vs. Avg. Visits)

The company’s Mobile Audience Insights Report is based on data gathered from a survey of 1,535 randomly selected mobile users, as well as the billions of data points from NinthDecimal’s advertising platform.

Other highlights from the NinthDecimal report included:

  • Store visitation rose 80 percent within the first day a mobile ad was served compared to average store visits.
  • Even six days later, in-store visits tied to mobile ads remained above average.
  • CPG mobile ads performed best when served within several hundred feet and two miles away from a store — 13 percent better than the average CTR.
  • QSR mobile ads performed 18 percent better than the average CTR when served within five and 10 miles of the establishment, but underperformed when served less than 2 miles away.

Audience-targeted mobile video saw a 31% increase in completion rates from Q3 to Q4 2014.

About The Author
David Kaplan David Kaplan @davidakaplan

A New York City-based journalist for over 20 years, David Kaplan is managing editor of GeoMarketing.com. A former editor and reporter at AdExchanger, paidContent, Adweek and MediaPost.