Recently, BIA/Kelsey released its U.S. mobile local advertising forecast, which revealed that search is the largest mobile local revenue component and will be through the forecast period of 2016. It is also estimated that U.S. mobile local advertising will grow 54% from 2011 to 2016.
These results speak to the rapid changes we have recently seen within the local search space, most notably in mobile. Google reported that “50% of mobile searches have local intent,” up 10% from 12 months ago. Not only do we see local results on the SERP take up more than one-fourth of the page (depending on the searches), but a large amount of advertising is currently focused on targeting ads to users based on their location.
What does this mean for advertisers? Advertisers should be creating (if they haven’t already) mobile-specific campaigns that are targeted to individual locations rather than generalizing one campaign or message and sending it out to all locations and devices. The more advertisers focus on messaging, offers and CTAs that appeal to users in a specific geographic region, the more likely they are to see high conversion rates and sales.
Another important point to consider is that location-focused mobile ads have not yet been utilized to their full potential, meaning now is a good time to see what might work well for your business (especially within the search realm). As stated by Search Engine Watch, there is an “oversupply of ad inventory happen[ing] in mobile,” making CPC and CPM go down.
Targeting ads in such specific ways through mobile and local advertising will only become more popular in the months and years to come. Therefore, now is the time to capitalize. Stay tuned as Google Analytics makes mobile measurement their focus this year in order to help advertisers effectively measure mobile strategies across all platforms.