Author: JT

A great deal of money is flowing into location based advertising for smartphones and there are many reasons why.

According to the latest reports in the mobile marketing environment, companies are continuing to pour their money into geolocation based efforts because it is proving to be worth every dollar spent.

Advertising over mobile using location based techniques promises surgical targeting, high conversion rates, and consumer data.

According to many reports, these goals for targeting, conversion rates, and rich customer profiles are delivering when it comes to geolocation. Therefore, companies that have already started using this type of mobile marketing are pouring more into it, and those that haven’t yet started are scrambling to begin.

Geolocation based mobile marketing techniques take in a number of different types of efforts.

It includes everything from geofencing to geoaware ad campaigns, hyper local keyword optimizing, and offering Wi-Fi hotspots. Among the most common consumer targets are bargain hunters, moms, coffee enthusiasts, and others.

BI Intelligence recently released a mobile marketing report that looked at geolocation and the progress that it is making in the industry as well as the success that it is achieving for its users. It determined that location based advertising can help in everything from encouraging consumers to buy to building customer profiles that are dense with useful purchasing behavior and preference information.

Among the reasons that geolocation is a growing leader in mobile marketing are the following:

• Geolocation is the equivalent to cookies on the standard web. Location based marketing offers the ability to collect data that can be used to provide consumers with relevant information that is more appropriate to their preferences and behaviors. This is important as many mobile devices do not support third party cookies.
• Money is being made from the money spent on Geolocation. For that reason, the majority of companies that have not started these campaigns are planning to, and those that already are using them are boosting their spending. This was discovered by Balihoo and Berg Insight.
• Geolocation provides consumers with the information they want and need to make informed shopping decisions that are relevant to them no matter where they happen to be.

Mobile games are getting more attention in the marketing sector

Mobile games have come to represent some of the highest rates of consumer engagement within the mobile sector. Consumers throughout the world have proven that they have an insatiable appetite for mobile games and the popularity of these games continues to grow rapidly. Mobile games are not only growing more popular with consumers, of course, and advertisers are beginning to look at these games as ideal platforms through which to connect with consumers.

Report shows that advertisers are beginning to favor mobile platforms

Advertisers are beginning to focus on mobile games more heavily around the world. A new report from App Annie and IDC notes that as mobile games grow among consumers, so too does the amount of money that advertisers are spending on such games. Advertisers do not typically invest in the development of games, but they do purchase marketing space within that game. Marketing in console games has been tricky due to the fact that consumers can rarely engage typical in-game marketing. This is where mobile games shine for advertisers.

Mobile games could be ideal marketing tools

Mobile games are, essentially, nothing more than applications for mobile devices. These applications are lightweight programs that are somewhat fluid when it comes to the features that they offer. This means that it is relatively simple to include some kind of advertisement into these applications. Moreover, these advertisements can actually be interacted with by consumers, making them quite effective when it comes to consumer engagement. Mobile games, which already involve consumer participation, have proven to be effective marketing platforms due to the fact that consumers will often interact with ads they see in their mobile games.

Advertising revenue in the mobile games sector to reach $12 billion this year

According to the report from App Annie and IDC, the total advertising revenue coming from the mobile games space is expected to reach $12 billion this year. Advertisers are likely to continue focusing more heavily on mobile games in the future in order to engage a new generation of consumers. Consumers have, thus far, been relatively welcoming to the advertisements that they see in mobile games, though some argue that these ads detract from the gaming experience.