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Cutting through the hype of GeoTargeting

Posted on December 02, 2012
By Shringar Pangal, Senior Product Marketing ManagerSenior Product Marketing Manager

Considering that Geo Targeting is one of the advantages of mobile advertising over other forms of advertising, there is a lot of hype around the feature, and rightly so. If you did a search on Geo Targeting on Mobile, my bet is that the top 5 results will talk about all the niche offerings of Geo Targeting such as hyper local targeting, geo-fencing, location based services etc. But let's take a step back and look at the some of the basic features of geo targeting “ state and city targeting. The question now would be Why look at the basic features while there are so many advanced features in Geo Targeting? The answer is two fold. The first lies in the campaign performance data around city targeting and the second is objective of the advertising campaign. I have tried to cover both these aspects in this blog. So, let's look at some data on city targeting. City level targeting usually costs less (CPC/CPM) than the more advanced geo targeting features, hence providing more impressions for the same cost. The high scale that you achieve helps you reach out to interested users scattered across the city/state. The Click Through Rates (CTR) of these ads have also proven to be fairly high varying from 0.7% to 1%. As an example, if I assume a CPC of $0.6 and a budget of $10K, you will able to generate awareness in the order of 1.6 Million impressions and approximately 16K clicks. All these numbers are a good indication of the kind of scale that is achievable using state & city targeting. The deciding factor for an advertiser has to be based on the objective of the advertising campaign. City targeting caters to a wide range of advertising verticals ranging from telecom operators, to airline industry to retail stores to financial services. The gamut of advertisers who could benefit from city targeting is large. Below are some specific use cases on how you could leverage city targeting for an ad campaign

  • An Airlines Operator

    who wants to promote the airline or special holiday season ticket prices/deals could target premium users & travelers in top travel routes across major cities in the country.
  • A Telecom Provider

    who wants to increase the user base could target Tier 2 and Tier 3 cities with new and competitive offers so as to lure them to move from their existing provider
  • A Credit Card Company

    who wants to sell more cards could target users coming from metropolitan & tier 1 cities with higher economic standards so as to reach the high income users
  • A Hotel Accommodation Provider

    could target cities with different ads advertising its different hotels & accommodation in each city
  • A Retail Chain

    could target all cities having a retail store to drive footfalls/ acquire more customers during the upcoming holiday season

These are only a few examples of how city targeting is being leveraged by advertisers and can be easily adapted to fit a lot more advertiser scenarios. Essentially it boils down to how an advertiser can incorporate city targeting in their advertising campaign to reach out to the right audience. In the end, achieving scale while maintaining relevance needs to be a strong focus for a successful advertising strategy which can be enabled by using city/state targeting smartly in the advertising campaign.



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