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How Geo-Targeting is Changing Digital Advertising

Location-based geo-targeting is playing an increasingly important role in the world of digital advertising. In an era of mobile devices, where nearly every consumer walks around with a location-aware smartphone in their pocket, more marketers plan to increase their spend on geo-targeted campaigns. In fact, recent research by BIA/Kelsey estimates that US spending on location-targeted mobile advertising will grow from just over $12 billion in 2016 to $32 billion in 2021. How will the growing use of geo-targeted campaigns help advertisers make their work more compelling and effective than ever before? Here are three benefits to consider.

Maximizing the potential of mobile
Location-targeted mobile ad campaigns are shown to be more effective than those without a geo-targeting element. One recent study of the quick-service restaurant (QSR) sector found that when such ads were used by QSR brands they doubled the ads’ effectiveness on metrics like click-through rate. Advertisers that don’t incorporate geo-targeting likely aren’t using mobile campaigns to their full potential.

Ensuring higher levels of personalization and segmentation
Smart use of geo-targeting can also yield significant insights into customer behavior and preferences. Consider a scenario where a retail brand runs an online video campaign. Geo-targeted creative might help that retailer gain new insights into what cities or states responded best to the campaign, helping inform marketing efforts in-store. Geo-targeted creative also makes it easier for advertisers to better personalize their ad creative, making it simpler to optimize specific versions for different languages or location-specific demographics.

Linking online ad campaigns to in-store activity
The holy grail of marketing is the ability to link advertising directly to consumer purchases. Increasingly, geo-targeted campaigns are making this dream a reality. More ad platforms like Facebook, Google and Snapchat now offer tools that allow advertisers to track how their campaigns impact in-store activity. Snap’s “Snap to Store” feature, for example, is helping brands like 7-Eleven track how spikes in foot traffic are related to advertising activity.

Geo-targeting is becoming an increasingly powerful, and important, feature of today’s digital advertising toolbox. Brands and agencies working with Extreme Reach for 3rd party ad serving are utilizing geo-targeting capabilities to enhance their campaigns. The continuing innovation in geo-targeting is good news for advertisers hoping to create more compelling and effective campaigns now and in the future.