xAd Releases Q1 2013 Mobile Advertising Trend Report

xAd | 05/07/2013

Popularity of Geo-Precise Mobile Targeting More Than Doubled in Q1 2013 Compared to Q1 2012

NEW YORK, May 7, 2013 /PRNewswire/ — xAd, the leader in delivering targeted mobile ads based on accurate user location and search context, today released its latest quarterly report, Mobile-Location Insights Q1 2013, focused on mobile advertising trends in Q1 of this year. According to the report, which is derived from xAd’s network and campaign data from January 1 through March 31 of 2013, mobile targeting trends continue to show a steady shift towards geo-precise targeting, which represented 58% of all national brand campaigns in Q1 2013, compared to just 27% in Q1 2012.

Geo-precise targeting, which leverages mobile’s unique ability to target users based on their specific location, continues to provide a much higher ROI for brands than standard geo targeting, which is often seen in desktop or traditional marketing (based on standard geo boundaries such as zip, city or DMA areas). xAd’s 2012 Year in Review Report, released in March, revealed that ad waste was reduced on average by 20-30% and performance increased double digits across campaigns that leveraged geo-precise targeting techniques, including behavioral targeting (based on geo-precise mobile search behaviors) and geo fencing (the ability to reach a consumer based on a set proximity or distance away from a specific place or point of interest).

xAd customer, Pinkberry, is leveraging geo-precise mobile targeting in order to drive foot traffic into Pinkberry stores and generate awareness of current promotional offers to try the new Pinkberry greek yogurt. Through xAd’s SmartFencing(TM) technology, which uses accurate location signals combined with real-time mobile search behaviors, Pinkberry is able to serve relevant ads to mobile users within a one-mile radius around Pinkberry locations. As a result, mobile ad performance doubled within just two weeks of launching the campaign.

“With location-based ads, we can capture the attention of the right audience within a mile of our store,” said Laura Jakobsen, VP of marketing at Pinkberry.

“The rapid adoption of geo-precise targeting techniques, which enable brands to target users based on their exact location, comes as no surprise,” said Dipanshu Sharma, CEO at xAd. “National advertisers are becoming better acquainted with the power of precise mobile location and its ability to not only reach specific audiences based on their current or past location behaviors, but its unique ability to reach users at the specific moment they are most likely to view and engage with an ad message.”

The report also revealed the top industries leveraging the power of mobile location and the most targeted mobile U.S. cities and regions in Q1 2013. Financial Services/Insurance, Telecommunications and Restaurants leveraged the power of mobile-location advertising most heavily in the first quarter of the year. The Restaurant category (including brands like Pinkberry) jumped to #3 (from #4 in 2012), while Health & Beauty also saw significant mobile-location advertising adoption in Q1, landing at #4.

The most targeted mobile cities in Q1 2013 were Houston, Chicago and Los Angeles, with Philadelphia and Miami rounding out the top five. The South continues to be the most popular region for mobile advertising targeting, securing five of the top 10 city slots in Q1, and for good reason. According the latest comScore numbers (MobiLens Audience Profile Report, February 2013), the South region currently makes up the largest portion of smartphone (38%) and tablet users (37.3%).

to download a full copy of Mobile-Location Insights Q1 2013