3 Things Every Marketer Should Know About Hyperlocal Programmatic

If you operate a multi-location brand, programmatic advertising makes it much easier and cost-effective to operate hyperlocal campaigns. Advances in programmatic technology have given rise to the adoption of this form of advertising by multi-location marketers, but some are still in the dark about how to build the right strategy for their brand.

Looking for tips on how to run hyperlocal programmatic campaigns for your multi-location business? Here are three important tips that will help you target users accurately and improve conversion rates.

1. Know Your Target Audience

Any successful programmatic campaign depends on in-depth knowledge of your target audience. You need rock-solid data about who your customers are, what kinds of ads they respond to, and the touchpoints at which they’re most receptive to targeted ads.

There are a number of ways to build and/or acquire this data. Analytics from your website can give you significant data about consumer demographics, behavior, and preferences. Tracking technologies are another great way to build out detailed information about your customer base. Both of these methods will give you the ability to segment your audience into various micro-audiences — an important part of programmatic advertising.

The most effective programmatic campaigns are typically built on a mixture of first-hand data and data from third-party sources. Unfortunately, the quality of third-party programmatic data can be inconsistent at best. So, when purchasing third-party data, it’s often a good idea to lean on a digital marketing agency with deep experience in this field.

2. Leverage Hyperlocal Targeting & Customization

Hyperlocal programmatic marketing delivers extraordinary value to multi-location brands. The reason for this is simple: programmatic marketing succeeds through personalization, and a person’s location is a critical factor in his or her purchasing decisions.

Imagine you’re searching for restaurants that deliver to your workplace. As you browse online reviews, you see a pair of ads for two chains of Thai restaurants. One ad tells you the address of the nearest location, shows you reviews for that location, and includes how long it will take them to deliver to your address. Meanwhile, the other ad contains generic copy for the brand, with no information about their nearest restaurant.

Which ad are you more likely to click?

Countless case studies have shown that users are much more likely to click on the localized ad instead of the generic one. This underscores the importance of not only targeting customers on a hyperlocal level, but also of customizing your ads to reflect location data.

3. Personalize, Personalize, Personalize

While hyperlocal targeting is incredibly effective, brands sometimes make the mistake of focusing too heavily on geographic targeting. No matter how precisely you target customers on a geographic level, your ads will fall flat if users are not targeted along other vectors.

Personalization is the key to successful programmatic campaigns. The more accurately an ad reflects a specific user’s needs, the more relevant that ad will be to the user and the more likely that the user will click it. While a user’s location is one of their most important data points for certain types of purchases, there are a number of other data points that will be relevant to their purchasing decision.

Multi-location brands must be careful not to lose sight of this when they develop hyperlocal programmatic campaigns. While geo-targeting is a crucial element for multi-location programmatic campaigns, a successful campaign will use multiple targeting methods, drawing on several different types of user data.

Learn more about Qiigo’s Programmatic solution by clicking here.

Why Local Marketers Can’t Ignore Programmatic

Display ads are one of the oldest digital marketing formats. But recently, they’ve fallen out of vogue with local marketers. Instead, these marketers are choosing to focus on other channels and formats, like local SEO, paid search ads, and social media.

In doing so, they’re ignoring the advancements and advantages of modern programmatic advertising.

The programmatic ads of today represent a big leap forward over display ads of the past. Programmatic ads offer extraordinarily precise targeting and tracking capabilities. They’re available in a range of dynamic and interactive formats, encouraging clicks and conversions. And through programmatic ads, you can reach consumers on the websites and apps they love to use.

Most importantly, programmatic ads have a proven track record of boosting awareness and sales. Studies have found that programmatic ads can boost:

  • Branded search queries by up to 25%
  • Conversion rates by up to 30%
  • Word-of-mouth recommendations by up to 10%
  • Event registrations by up to 25%

And thanks to their targeting capabilities, programmatic ads are a gift to local marketers in particular.

The Importance of Programmatic for Local Marketers

For local marketers, precise targeting can make or break a campaign. To connect with the right consumers, you need to carefully target your audience based on who they are and where they live/work. At the same time, you’re typically working with smaller budgets, which means that every single dollar needs to count.

In the past, display ads offered limited capabilities when it came to user targeting. Essentially, the only control marketers had over targeting was which website the ad ran on.

With programmatic ads, you can target users with the level of precision that local marketing demands. Thanks to the reach and targeting methods of the Google Display Network and the Facebook Audience Network, you can target your ads based on individual users’ characteristics, behaviors, and location.

This way, you aren’t limited to local websites for targeting local consumers. Instead, you can serve ads to local consumers wherever online they happen to be.

5 Advantages of Local Programmatic Ads

1. Awareness & Trust

Programmatic ads are highly effective at building awareness and trust with local consumers. Compared to paid search, local SEO, and social media, you’re less dependent on user actions. You don’t need to wait for users to find you. Instead, you can serve ads directly to your audience. What’s more, you’ll be doing so on the websites and apps they trust most.

2. Precision Targeting

The core strength of programmatic lies in its targeting abilities. Local marketers can target programmatic ads via a user’s location, either via a set geographic radius or by targeting specific ZIP codes. But that’s just the tip of the iceberg. You also have the option of targeting users based on their demographics, interests, search behaviors, and their history of online interactions with your business.

3. Dynamic Ad Content

On top of serving your ads to a highly targeted set of users, programmatic allows you to tailor your ads according to users’ features and behaviors. If a user has recently searched for a product you offer, you can serve them an ad with an image of this product. If they’re within a short distance of your location, you can serve them an ad with directions to your business.

4. Detailed Analytics

Like other digital marketing formats, programmatic ads are extraordinarily rich in terms of data and analytics. The same level of precision used to serve ads can be harnessed to measure their performance, with the ability to micro-segment data for specific campaigns, specific ads, and specific audience groups. Programmatic ads are also ideal for A/B testing, allowing you to quickly optimize your campaigns for higher click-through and conversion rates.

5. Cost-Effectiveness

One more reason why local marketers should use programmatic ads? Their cost-effectiveness. While programmatic campaigns cost more than traditional display ads, they remain much less expensive than other types of digital marketing campaigns. They also deliver more immediate and tangible results, allowing you to measure the ROI of your ad spend more easily and more quickly.

US Mobile Local Advertising On the Rise

5 Yr Local Ad Spend Forecast

BIA/Kelsey’s US Local Mobile Forecast recently projected US mobile local advertising revenues will grow from $1.2 billion in 2012 to $9.1 billion in 2017. This jump represents a compound annual growth rate of 49.3%.

The US Local Mobile Forecast includes projections for mobile advertising via search, display, video, and commercial SMS. Of these, mobile search is projected to be the premier ad format. Mobile search is expected to grow from $704 million in 2012 to $5.7 billion in 2017. As a portion of all local media ad revenues, mobile US advertising is expected to increase from 0.9% in 2012 to 6.1% in 2017.

Mobile local ad revenues are just a portion of the growth expected in the mobile ad spending category. Total US mobile ad spending is expected to increase from $3.2 billion in 2012 to $16.8 billion in 2017. In 2012, locally targeted mobile ads accounted for just 38% of all mobile advertising. By 2017, that percentage is expected to rise to 54%.

Mobile Local Ad Spend by Format

Overall, mobile search advertising accounts for the largest share of mobile local media spending with display and SMS following. The breakdown of mobile local ad spending is as follows:

  • Search ads should increase from $704 million in 2012 to $5.7 billion in 2017.
  • Display ads are projected to grow from $379 million in 2012 to $2.7 billion in 2017.
  • Expected growth in commercial SMS messaging is from $101 million in 2012 to $162 million in 2017.
  • Video ads should see growth from $38 million in 2012 to $515 million in 2017.

These increases in mobile ad spending are expected to be driven by several factors including:

  • Large brand advertisers will begin shifting campaign objectives to include mobile and to take advantage of the effective and undervalued mobile local ad inventory.
  • The SMB segment is expected to embrace mobile advertising via self-serve tools and local media direct sales channels.
  • Innovation among ad networks and ad tech providers are expected to encourage the utilization of this segment.
  • Premiums developed for location-targeted ads will compound ad volume growth.

Is your business embracing local mobile advertising? Find out how Qiigo can help you utilize this exciting new marketing channel. Call our office today at (404) 496-6841.