“When you combine location’s ability to find and target consumers at the right place and time in local markets with TV’s massive reach and frequency, marketers are able to build and measure highly impactful advertising solutions,” says Eric Hadley, CMO at GroundTruth.
Location-based advertising is inherently “local,” so it’s little surprise that marketers at that level are increasingly looking for ways to imbue traditional ad strategies with geotargeting.
BIA Advisory Services is attempting to quantify that complementary function for location advertising, as the local market consultancy estimates advertisers will spend $20.8 billion in local television and $22.1 billion in location-targeted mobile to target audiences in 2018.
“Today’s marketers increasingly rely on data-infused audience targeting to deliver relevant cross-platform messaging throughout the consumer’s journey to purchase,” said Rick Ducey, managing director, BIA Advisory Services. “TV and mobile are two of the most powerful platforms that audiences are using daily in a unified, not fragmented, experience. Advertisers who integrate audience targeting on TV with location targeting on mobile can achieve an incredibly powerful one-two marketing punch.”
The report comes as SMBs and other local advertising marketers gradually shift their spending priorities and media preferences. In March, a Borrell Associates survey of 1,000 local brand execs said they expect spending to hold steady this year, while two-in-five expect spending will increase by more than 5 percent.
The Borrell report also found that quarter of SMBs spent more money on developing content for web and social media than on paid media, which means that more local budgets will be going to marketing services such as consultants.
At the end of 2015, Borrell found that “local digital” targeted banners comprised 60 percent of the digital revenue, while “untargeted” banners represented 9 percent as paid search took 14 percent and video attracted 4 percent of SMB dollars.
That has paved the way for “native-social” advertising by SMBs, driven largely by Facebook, which has placed a special emphasis on local business marketing.