The quest for a more effective, more personalized approach to serving digital ads to consumers has led advertisers to find new and better ways to target them based on where they live and play. The “one size fits all” approach to audience targeting via segments is increasingly becoming a thing of the past. In its place, there has been a significant market shift towards localization driven by the growth of mobile and the resulting advancements in location data intelligence and insights. Against this backdrop lies the need for advertisers to evolve with the times and adopt a localized programmatic strategy. With that in mind, let’s take a look at where localized programmatic is heading and its three largest growth areas: Geo-Fencing, Addressable Geo-Fencing, and OTT/CTV.
One of the fastest growth areas for localized programmatic and the entry point for many advertisers into the local market is Simpli.fi’s programmatic Geo-Fencing. For those unfamiliar, Geo-Fencing is a location-based mobile advertising technology powered by latitude and longitude data to target specific geographic areas with custom shapes. Simpli.fi can target users via mobile devices that utilize location services. Data sources and filtering models ensure highly accurate GPS data so advertisers can reach individuals based on the locations they visit.
This targeting tactic has been growing fast in terms of advertiser adoption and has largely been responsible for swaying national advertisers to invest in localized mobile ad spend. The Global Geofencing Market is estimated to hit $1.7 billion by 2024. As reported in the February 2018 Global Market Insights report, “the geo-fencing market growth is attributed to the extensive proliferation of mobile devices such as smartphones and tablets, along with rising demand for proximity marketing solutions. The utility of mobile devices is widening as they are consolidating their role as central medium to reach an ever-expanding portfolio of applications and services.”
An analysis of Simpli.fi’s data further illuminates the increased advertising adoption of Geo-Fencing. In 2018 compared with 2017, Simpli.fi saw:
- A 54 percent growth in advertisers including Geo-Fencing in their targeting mix, resulting in 69,711 Geo-Fencing advertisers in 2018.
- A 47 percent growth in the number of Geo-Fencing campaigns on the Simpli.fi platform, resulting in a total of 187,848 Geo-Fencing campaigns in 2018.
- A 43 percent growth in the number of Geo-Fences set up on the Simpli.fi platform, resulting in 9,373,102 Geo-Fences in 2018.
Geo-Fencing is ideal for advertisers who wish to:
- Drive loyalty-marketing strategies by targeting customers who have previously visited your physical location.
- Conquest competitors’ locations and build a unique audience of potential customers who have already expressed interest in a similar product or service.
- Target potential customers who have visited specific locations of interest relevant to your product or service, or are within a predetermined physical proximity to your business.
- Reach customers who have attended an event at a specific date, time, and location by utilizing Event Targeting.
- Target individual households and businesses at the address-level with mobile, video, and OTT/CTV ads.
What’s more, advertisers can utilize our Conversion Zones and Geo-Conversion Lift technology to track online-to-offline conversions and measure campaign performance. When Geo-Fencing is combined with Conversion Zones, advertisers can track what amount of physical traffic at their location has previously seen the advertiser’s ad. The Conversion Zone recognizes the user and attributes their visit as an offline conversion.
Simpli.fi’s Geo-Conversion Lift takes attribution reporting one step further, giving advertisers some significant advantages when it comes to analyzing their Geo-Fencing campaigns. Advertisers can now determine what percentage of visitor conversions can be attributed to their advertising campaigns (i.e. what amount of foot traffic was natural conversions vs. campaign conversions).
With location-based targeting becoming a key part of any marketer’s strategy, more and more advertisers are finding a need for increased granularity, precision and scalability when it comes to their targeting efforts, especially at the address level. Enter Simpli.fi’s Addressable Geo-Fencing, a powerful, efficient, and accurate new way to target specific households and businesses with digital advertising, such as mobile, video, and/or OTT/CTV ads.
Addressable Geo-Fencing uses plat line and GPS data, rather than IP-based targeting, to deliver programmatic advertising using first party address data such as CRM lists and other offline databases. Don’t have access to first party data? Simpli.fi can curate lists on behalf of advertisers based on over 1,500 variables. Addressable Geo-Fencing is an excellent complement to other address-based marketing initiatives such as addressable TV and direct mail as it provides extended reach, increased frequency, and improved attribution.
And with our Geo-Conversion Lift technology now available for Addressable Geo-Fencing campaigns, foot traffic attribution is easy. Advertisers can track online-to-offline conversions, and provide granular insights with metrics like campaign conversions vs. natural conversions to better determine which foot traffic was naturally converted vs. influenced by an ad.
Simpli.fi’s solution meets a significant market need at a time when advertisers increasingly want to localize and personalize their campaigns, and when solutions like IP-based targeting aren’t as accurate as needed for superior performance.
While most programmatic platforms are limited in how they can approach OTT/CTV targeting, Simpli.fi has purpose-built our solution to offer three distinct methods of audience targeting to enable advertisers to reach their ideal audience on OTT/CTV devices: addressable, behavioral, and demographic.
With addressable targeting, Simpli.fi provides advertisers with the most granular way to deliver OTT/CTV ads to individual households. Using GPS data, advertisers can precisely and accurately target by physical address. This is a great way to leverage CRM and other offline databases to build custom audiences for OTT/CTV targeting. And with free list onboarding and the ability to target one million addresses per campaign with unlimited campaigns, advertisers get to do so at scale.
Simpli.fi’s behavioral targeting brings the precision of digital targeting to OTT/CTV by giving advertisers the ability to target users based on keywords, context, and various other online behaviors. This lets advertisers cover a different set of bases with their OTT/CTV targeting, and provides another granular method for reaching the right audience.
Demographic remains a tried and true method for targeting specific audiences. Simpli.fi takes advantage of numerous combinations of demographic variables to give advertisers yet another way to target their ideal audience with OTT/CTV ads.
With three distinct methods of audience targeting paired with the capability to target on both the big and small screens, Simpli.fi’s OTT/CTV solution is key driver of a platform-wide video growth of 96% over the last year and we expect this number to continue to grow throughout 2019.
It is evident that the future of localized programmatic will be centered around Mobile Geo-Fencing, Addressable Geo-Fencing, and OTT/CTV. Check out more details around the importance of localized programmatic, key drivers of growth, and reasons for advertisers to consider localizing their strategy within our exclusive industry report, The State of Localized Programmatic. Email us at email@example.com or continue the conversation with us on Twitter at @simpli_fi.