2. Local is tops in Mobile
...especially in key verticals
Just one year after declaring the “year of mobile”, the industry continues to accelerate at an exciting rate as
brands and SMBs learn the value of mobile advertising. Leading the charge in mobile’s continued growth is
the value found in local-mobile targeting. From big brands to local businesses, mobile-local is making its way
into advertising budgets in a big way. A recent BIA/Kelsey forecast places local-mobile at just under 50% of
total mobile ad spend, but by 2016 mobile-local will make the leap to capture nearly two-thirds of this spend.
Locally targeted ads in mobile have shown success in multiple business categories, however, there are
several industries that show usage and mobile performance that far exceeds industry averages. Since
little has been written to date about how local consumers are using mobile with regards to specific
business industries (i.e. travel, entertainment, auto service etc.) our goal is to highlight one industry
alongside our overall network performance in each xAd quarterly report moving forward.
For Q1 2012 we will be highlighting Travel - seeing as though we are on the heels
of the industry’s peak season.
The insights provided in this report will go a long way in educating marketers on the
power of mobile advertising that utilizes location targeting, and how that translates
to performance – specifically for the travel category.
xAd Mobile-Local Performance Stats > Q1 2012 1
3. Q1 Mobile-Local Trends
What a difference a quarter makes. Since our Q4 report, smartphone penetration rose six points
from 44% to 50% according to Nielsen. Not only has the number increased - but usage has gone
through the roof.
In Q1 alone, xAd delivered close to 2 billion locally xAd Mobile-Local Search Trend
targeted search and display ads across our extensive
network of top mobile sites and applications.
In fact, from Q1 2011 to Q1 2012, mobile-local traffic
across our network increased by 300%.
Source: xAd Network & Campaign Data
xAd Mobile-Local Performance Stats > Q1 2012 2
4. Mobile Platforms
As stated in past reports, mobile activities occur both in mobile websites as well as mobile
applications. In fact, Q1 saw continued growth in usage of both apps and browser. Mobile
application search access in Q1 continued to grow at a higher rate than access via mobile
browser - a trend we have seen continue since we began tracking it in Q3 2011. In fact, from
Q4 2011 to Q1 2012 mobile search access via application gained 4 percentage points, while
mobile search access via browser increased 3 points.
Browser Search
Application Search
Mobile Applications or Browsers
(All Mobile Users)
Source: comScore MobiLens™ Trend Report
(Three-Month Average, March 2011–March 2012)
This trend is even more apparent when isolating usage to just Smartphone users. For both
iOS and Android users mobile search access is preferred in application vs. in-browser.
Mobile Applications or Browsers (iOS and Android)
Source: comScore MobiLens™ Trend Report (Three-Month Average, March 2011–March 2012)
xAd Mobile-Local Performance Stats > Q1 2012 3
5. For mobile users accessing travel related content we found that search access via browser is preferred
across ALL MOBILE users. However, when breaking out by Smartphone user we found iOS users slightly
preferred application access over browser. For Android users, the opposite trend is shown.
Mobile Applications or Browsers
TRAVEL OVERALL MOBILE
Source: comScore MobiLens™ Trend Report
(Three-Month Average, March 2011–March 2012)
Mobile Applications or Browsers
TRAVEL MOBILE iOS VS. ANDROID
Source: comScore MobiLens™ Trend Report (Three-Month Average, March 2011–March 2012)
xAd Mobile-Local Performance Stats > Q1 2012 4
6. Search Categories
OVERALL PLATFORM
Based on the top-searched keywords in Q1 2012, most mobile users entered queries related to specific
local needs, such as restaurants and gas stations.
Q1 2012 TOP SEARCH CATEGORIES TRAVEL
We dove deeper into the fast-growing
travel category and analyzed search
activity specific to the sector, which revealed
a number of key insights. Transportation
related search is responsible for nearly half
of the travel search activity this quarter,
with travel agencies, tours and lodging
rounding out the second half. But within
these subcategories, more specific search
terms such as cruises and car rental illustrate
the opportunities available in mobile for
travel marketers.
Top 10 Travel Keywords
Compared to previous quarters, Q1 saw an increase • Car Rental
in search traffic for a few categories due to seasonality – • Travel Agencies
most notably Health & Medical, Home & Garden, • Limousine Services
and Travel. • Airline
• Tours
• Transportation Services
• Rentals
• Resorts
• Cruises
• Amusement Parks
Travel Category Breakdown
Transportation
Travel Agencies
Tours and Attractions
Resorts & Lodging
xAd Mobile-Local Performance Stats > Q1 2012 5
7. Mobile-Ad Performance
Due to mobile’s ability to target an audience based on more refined geographic
areas, we continue to see performance metrics that rival traditional
desktop search and display. But we at xAd can go even deeper, targeting
an audience based on both location data (city, zipcode and lat/long)
and area search activity. For this reason we are able to drive some of the
highest performance rates in the industry. Compared to Q4 of 2011, average
click through rates for display campaigns on the xAd network increased from an average 0.6% to an
average of 0.72%. For search campaigns, we also saw an increase in average CTR, which grew from
a 7% average in Q4 2011 to over 8% in Q1 with a secondary action rate of 36%.
Average Display Performance across xAd Network Secondary Actions Post Search
Q1 Display CTR = 0.72%
Average Search Performance across xAd Network Calls
Q1 Search CTR = 8.13% Maps & Directions
Description
Q1 Search Secondary Action Rates = 36% More Info
Other
TOP TRAVEL CATEGORIES – SEARCH PERFORMANCE
Going deeper into mobile search activities related to the major travel sub-categories – Car Rental,
Hotels, and Airlines – we can better understand how a user relates to specific ad experiences, and
what information is most important. All categories exhibit very strong click-through-rates but it is
what happens after the initial click that is most interesting. For instance, for Car Rental and Airlines,
the top action that occurred after the initial ad click (secondary action) was calls with 43% and 59%
of clicks turning into a call to a business vs. Hotels whose top secondary action is access to maps &
driving directions.
Car Rental Search Hotels & Lodging Search Airlines Search
• CTR – 17.06% • CTR – 9.71% • CTR – 17.8%
• Click-to-call – 43% • Click-to-call – 7% • Click-to-call – 59%
• SAR – 60.22% • SAR – 28.38% • SAR – 65.85%
Breakdown of Secondary Actions
xAd Mobile-Local Performance Stats > Q1 2012 6
8. Where Mobile Is Tops
Region
In Q1, as in previous quarters the majority of U.S. search and display activity stemmed from the South,
followed by the West. Quarter over quarter we saw a shift in city ranking as Redmond, Wash. fell toward
the bottom and made room for a big jump from Houston, Texas. But when looking at the cities ranked
by overall search activity in travel, the top 5 are shaken up a bit when Washington D.C. enters the list at
#5. Upon closer analysis, the cities representing travel’s top 5 are also major airline hubs.
REGIONS xAd NETWORK OVERALL TRAVEL
South 35% 31%
West 26% 26%
Northeast 21% 25%
Midwest 18% 18%
Top Cities
OVERALL NETWORK TRAVEL
New York, NY New York, NY
Los Angeles, CA Los Angeles, CA
Chicago, IL San Francisco, CA
Houston, TX Chicago, IL
Miami, FL Washington, DC
San Francisco, CA Houston, TX
Mountain View, CA Atlanta, GA
Dallas, TX Miami, FL
Atlanta, GA San Antonio, TX
Redmond, WA Dallas, TX
xAd Mobile-Local Performance Stats > Q1 2012 7
9. Demographics
To further support travel’s relevancy in the local-mobile space, travel-interested mobile user
demographics remain in line with overall local-mobile user profiles. The characteristics of those
accessing local search through their mobile device are the same as users accessing travel
related content, which creates the perfect situation for performance-driven campaigns.
Mobile users that access local content
0% 10% 20% 30% 40% 50% 60%
Male 53%
Gender
Female 47%
13-17 6%
18-24 18%
25-34 26%
Age 35-44 21%
45-54 15%
55-64
9%
65+
5%
<$25k 13%
$25k to <$50k 21%
HH Income $50k to <$75k 19%
$75k to <$100k 15%
$100k+ 32%
Grammar school or less 2%
Some high school 8%
Completed high school or equivalent 14%
Education Some college (but no degree) 28%
Associates degree 9%
Bachelors degree 26%
Graduate degree 14%
Mobile users that access travel related content
0% 10% 20% 30% 40% 50% 60%
Male 59%
Gender
Female 41%
13-17 5%
18-24 17%
25-34 31%
Age 35-44 24%
45-54 14%
55-64
6%
65+
3%
<$25k 11%
$25k to <$50k 18%
HH Income $50k to <$75k 16%
$75k to <$100k 20%
$100k+ 35%
Grammar school or less 3%
Some high school 7%
Completed high school or equivalent 12%
Education Some college (but no degree) 21%
Associates degree 11%
Bachelors degree 29%
Graduate degree 17%
xAd Mobile-Local Performance Stats > Q1 2012 8
10. Summary
Beyond “the year of mobile” we have seen continued growth in local-mobile
search and a stand-out opportunity in the fast-growing travel sector.
• y 2016, local-mobile ad revenues will account for 65% of mobile ad revenue,
B
reaching 5 billion dollars.
• ravel stands out as an emerging category in local-mobile advertising thanks
T
to the location-specific nature of the industry.
• eMarketer estimates 16 million Americans will book travel via mobile this year,
and by 2016 that number is expected to more than double to 36.7 million.
• Peak season for travel search on desktop translates to seasonal mobile-local
search seen in the category – both culminating in the summer months.
• ransportation related search accounts for nearly 50% of all travel search on the
T
xAd network.
• op 5 travel related keywords include Car Rental, Travel Agencies, Limousine Services,
T
Airline, and Tours.
• Overall mobile search activity seems to ebb and flow throughout the work week
with a lull on the weekends, but the travel category remains relatively steady
throughout the week, peaking on Friday.
• Compared to Q4 of 2011, average secondary action rates for display campaigns
on the xAd network increased 27%.
• nalysis of three key travel categories revealed a variety of preferred secondary
A
actions driving campaign performance
– or Car Rentals, calls accounted for 73% of secondary action rates.
F
– or Hotels, Map and Driving Directions drive 76% of secondary action rates.
F
– irlines drive an incredible 89% of secondary action rates to calls.
A
• Demographics for mobile users accessing local content is nearly identical to users
accessing travel related content, further supporting travel’s relevancy in the mobile space.
xAd Mobile-Local Performance Stats Q1 2012 9
11. About This Report
Published quarterly, this report provides, particularly how consumers are using mobile to search
for, find and interact with local businesses. By juxtaposing consumer demographics with mobile
behaviors, devices and platforms, the data contained herein will help businesses make informed
decisions about their current media strategies and future initiatives.
For the purpose of this report, the local-search audience is defined as mobile-phone
owners who access the following content categories, either through their mobile browsers
or applications: business directories, classifieds, maps, movie and restaurant information,
news, real-estate listings, traffic reports and weather.
Metrics and insights provided are a combination of xAd’s network and campaign data
(January 2012–March 2012), as well as the comScore MobiLens™ Audience Profile Report (three-
month average ending March 2012) and the comScore MobiLens™ Trend Report (three-month
average, March 2011–March 2012). The MobiLens™ product is derived from an online intelligence
survey of a nationally represented sample of mobile subscribers 13 years old and above. Data on
mobile-phone usage refers to a respondent’s primary mobile phone and does not include data
related to his or her secondary device.
For questions or to provide feedback, please contact us at 415.814.9837 or GetLocal@xAd.com.
About xAd
Established in 2009, xAd is one of the largest mobile-local advertising networks in the U.S. and
the only one offering both targeted search and display. Across our network, we aggregate and
manage over a billion location-specific ad requests per month, billions of business listings, and over
one million national and local advertisers.
Our proprietary technology and quality-score algorithm, which takes into account nearly 30
variables such as user behavior and search location, deliver local and contextual relevance for
better advertising performance: monetized calls, clicks and visits generated from ads across the
mobile Web, owned and operated local apps, publisher partners, and mapping and navigation
systems. That comprehensive ad inventory facilitates higher conversions for advertisers, who can
reach a vast mobile audience with a single touch point, while publishers can experience high
eCPM and also access a large, accurate database in one location.
Based in San Francisco, xAd has research and development facilities in Sunnyvale, California,
and Gurgaon, India; sales centers in New York City and Charlotte; and several satellite offices
across the U.S. For more information, visit xAd.com.
xAd Mobile-Local Performance Stats Q1 2012 10
