Marketers have increased response by segmenting online consumers by location, especially with paid search marketing. These strategies often use IP addresses to target online ads to visitors from specific regions or cities.
Now GPS is being added to mobile devices. The coordinates are accurate within a matter of feet, rather than miles. This is opening an opportunity for much sharper location-based advertising.
GPS-based location-driven ads have the potential to be very effective, according to a survey by Marketing Research Services Inc., on behalf of NAVTEQ. NAVTEQ provides digital mapping services to companies including Garmin and BMW.
MRSI sampled 757 users of NAVTEQ ad-enabled GPS devices who were 18 and older with an average household income over $50,000. They found:
o 72% viewed the ads as acceptable to the navigation experience
o At least 50% of respondents recalled seeing an ad for each of the advertised brands (aided and unaided)
o 19% of people who recalled seeing a specific ad clicked through for more information
o Up to 6% visited a business location because of seeing an ad on their navigation device
The release describing the survey lacks some important details, such as what the ads look like, if they included offers and what “up to 6%” really means. However, I do not dispute the validity of the data. I expect that GPS-targeted ads will become very popular and effective in the mobile advertising world.