While mobile use is continuing to skyrocket,mobile advertising is comparatively falling behind. Enter location-based advertising, which has been recently utilized as a tool for mobile advertising. LBA uses geo-targeting and geo-fencing to serve ads to consumers based on their location.

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Location-Based Advertising Helps Marketers
Reach Moving Targets
http://tier10lab.com/2013/05/23/location-based-advertising-marketing-moving-targets/
May 23, 2013
By Ally Reis
While mobile use is continuing to skyrocket, mobile advertising is comparatively falling behind. Enter
location-based advertising, a technology that’s not necessarily new, but has been recently utilized as a
tool for mobile advertising. Location-based advertising, or LBA, uses geo-targeting and geo-fencing to
serve ads to consumers based on their current location or frequented locations.
With location-based advertising there are two different types of ads that can be served: push ads or pull
ads. The push category involves ads sent to a user based on their device’s location. If provided with more
data about any given user, these ads can be more finely targeted. Pull ads are deployed when a user
“pulls” for information by Googling keywords or using search apps. Say a user is within a few miles of a
Macy’s department store; if that user searches for store hours, they could be served an ad about a sale at
that Macy’s.
In the past, LBA could have been as simple as a billboard advertising a steakhouse “ONLY TWO EXITS
AWAY!” But now, when applied to mobile, the technology allows marketers to essentially track the
activities of their target audience and serve ads based on their closest or most convenient location. As
cell phones become more and more a part of daily life — not only for communication but for
entertainment, e-commerce, search and GPS uses as well — the relevance of tracking app usage for
effective advertising equally grows.

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While there are many potential uses of LBA, allowing companies to track your activities, shopping
preferences and general location can sound more like Big Brother than successful advertising to the
average mobile user. To avoid any negative attitudes towards location-based advertising, it will be
important to maintain openness with consumers about how safely and privately this research is being
conducted and applied to advertising.
One particular platform, AdMatch, brings together location data and behavioral profiles of users in order
to accurately predict and build audiences for particular ads. This not only helps organize consumers, but
creates a data compilation of an individual based on their own behaviors.
Despite the ability to point out deals and sales at nearby locations or at their online equivalents, simply
targeting a consumer based on their close proximity to a store may not necessarily gain their interest.
However, by compiling location-based data, much as AdMatch does, it’s possible to develop profiles of
consumers, which can then be organized into the marketers’ desired audiences. For example, if there is a
demographic of businessmen who drive Toyotas and frequent the same carwash chain in a given area,
marketers could store this consumer profile and target them for specific advertising campaigns.
Companies such as NBCUniversal, Google and Expedia have seen success using LBA as a way to
specific target audience groups and serve them specific content. As this location-based technology
advances further, its effectiveness in advertising will only continue to increase.
[Sources: Forbes, MarketingLand, AdWeek]
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