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Acknowledgments

This report was produced by Street Fight Deputy Editor Steven Jacobs, our lead analyst on hyperlocal on the mobile platform. His interviews with key industry leaders, coupled with his ability to synthesize published data and market trends serve as the basis for Hyperlocal Targeting on the Mobile Platform. This report serves as the definitive guide for reaching local consumers through the mobile platform. It examines todays tools and techniques that use location data to help marketers reach the right consumers, at the right place, and in the right context. To reach Steven Jacobs for comment and consultations, please send an email to: steven@streetfightmag.com. This report has been partially underwritten by Moasis Global. In 2009, a startup team of marketing professionals realized the way consumers interacted with information and location was changing, but the tools for reaching them lagged far behind. Since then, the companys mission has been to unify and simplify local mobile marketing, creating new possibilities for marketers and businesses of all sizes. Moasis Geo-Grid technology platform fuses location data with multi-screen delivery, and is flexible enough to weather ongoing changes in digital media and local marketing. Moasis offers one of the most intelligent location discovery and instant delivery local-mobile solutions on the market, in a format thats both accessible and affordable.

TABLE OF CONTENTS
Introduction.................................................................4
The mobile revolution is here, drastically affecting how consumers shop and buy. Marketers can exploit the changes using hyperlocal targeting methods and a growing infrastructure of location-based tools.

The Hyperlocal Targeting Landscape...............................12


Using mobile devices to target individuals is a broad, developing practice, with as many vendors as there are methods. How it Works A Hyperlocal on Mobile Glossary..................................24 This lexicon includes geo-fencing, location-enabled impressions and other common terms used in the hyperlocal on mobile industry.

Media Buying Tips and Insights for Marketers..............27


Location adds a layer of data to standard marketing campaigns. It also adds a layer of complexity in data sourcing and metrics. Tips for Selecting a Hyperlocal on Mobile Application.........................31 Advice marketers should follow to make sure theyre using the methods and technology best suited to their needs.

Case Studies in Hyperlocal Targeting..........................37


Three typical mobile marketing scenarios show how companies can incorporate hyperlocal targeting strategies into campaigns, each with several options for delivering the best results.

Conclusion: Mobile Targeting is Proven, Yet Evolving....46


Hyperlocal targeting on the mobile platform is exciting but still in its infancy, awash in technologies that deliver unprecedented precision in delivering location-based data, but challenged by lack of industry standards and solid tools for measuring return on investment.

INTRODUCTION

Mobile Has Arrived


With 133.7 million consumers, a full 52.5% of the U.S. population1, owning a smartphone, its safe to say that the mobile platform is here to stay and growing. (Fig. 1.1, Smartphone Market Share) ABI Research projects global smartphone sales to increase by 44% in 2013, bringing the total number of smartphones around the world to 1.4 billion. Fig. 1.1- Smartphone Market Share Source: Comscore
60.0% Percentage of mobile subscriptions 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%

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Its not just the number of smartphones thats on the rise tablet use is up, too. One in five adults in the U.S now owns an iPad or other tablet device, up from 10% in 2011.2 Consumers arent just buying the hardware theyre using it, spending an average of 2.5 hours a day on their mobile devices, according to Flurry, a mobile analytics firm. A full 80% of that time is spent on apps, and another 20% surfing the Web via a mobile browser.3
1 Smartphone Subscriber Marketshare, comScore, February 2013. 2 The State Of Consumers And Technology: Benchmark 2012, US, Forrester, December 2012. 3 Flurry FiveYear Report: Its an App World. The Web Just Lives in It, Flurry, April 2013.

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In the past six years, an entire industry has sprouted up to help bond consumers to their smartphones in ways that will keep them in the grips of the pocket-sized devices for years. It has spawned companies such as Foursquare, which lets consumers share their location with friends; the photo-sharing phenomenon Instagram; and taxi app Uber. Consumers are downloading new apps at the rate of 46 million a day, according to Mary Meeker, the influential partner at venture capital firm Kleiner Perkins Caufield & Byers. And Apples App Store, which boasts of users downloading a total of more than 45 billion apps, is just the tip of the iceberg.4 More and more, apps can pinpoint location. As of July 2012, an estimated one third of the mobile applications on the App Store recognized where a user was sitting, walking or shopping.5 Mobile users are willing to share where they are with publishers and application developers in exchange for a range of services. In all, 75% of smartphone owners reported using their mobile device to access real-time, location-based information, according to a recent Pew study.6 (Fig. 1.2, Location Services on the Rise) Fig. 1.2 Location Services on the Rise
Source: Three-quarters of smartphone owners use location-based services, Pew Internet, May 2012
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Mobile users are willing to share where they are with publishers and application developers in exchange for a range of services.

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18% 12%

Geosocial services

Location based information services Percentage of mobile users

4 Apple Passes 45B Total Unique App Downloads At A Rate Of 800 Per Second With Over $9B Paid To Devs, TechCrunch, April 2013. 5 Unique in the Crowd: The privacy bounds of human mobility, Nature, March 2013. 6 Threequarters of smartphone owners use locationbased services, Pew Internet, May 2012.

Opportunities are exploding for marketers to reach consumers wherever they are. Between mobile Web surfing, apps and text messaging, location-based advertising inventory is expanding, and the channels for reaching consumers are consolidating and maturing. Companies such as xAd, Verve Mobile, JiWire, Moasis and others have sprouted up to harness location-enabled mobile ad inventory and make it accessible and conform to traditional ad buying standards. Despite the ubiquity of the platform and the immediate access it affords, marketers have been slow to go mobile. Locally-targeted mobile advertising is still a tiny portion of all local advertising. The $1.2 billion marketers paid for locallytargeted mobile advertising in 2012 was a mere .9% of all local advertising on any medium last year, according to a March 2013 local media forecast from BIA/ Kelsey.7
Mobile is expected to account for 1.5% of local advertising dollars in 2013, about $2.1 billion, according to BIA/Kelsey. Despite the ubiquity of the platform and the immediate access it affords, marketers have been slow to go mobile.

Thats changing. Mobile is expected to account for 1.8% of local advertising dollars in 2013, about $2.3 billion, according to the same report. When it comes to mobile ad spending, location-targeting is taking a

good chunk of the pie. In 2012, locally targeted ad messages accounted for 37% of all mobile advertising spending, and that number is expected to jump nearly 46% by 2017 as the mobile industry matures and location becomes an even bigger part of the advertising buy. 8 Marketers are dipping a toe in, running campaigns that mimic what they are doing on other platforms. That may account for the fact that search advertising captured 58.6% of all locally-targeted mobile ad dollars in 2012. 8 Mobile advertising spending has yet to catch up with how dependent people have become on their phones to read news, check weather and get other information. Today, mobile accounts for 10% of all media consumption by consumers, yet comprises only 1% of marketers overall spend, according to a December 2012 Kleiner Perkins report.8 (Fig. 1.3, Mobile Ad Spend v. Usage)
7 BIA/Kelseys Annual U.S. Local Media Forecast, 20122016, BIA/Kelsey, March 2013.

8 Internet Trends: 2012, Kleiner Perkins Caufield Byers, December 2012.

Fig. 1.3 Mobile Ad Spend v. Usage


Source: Internet Trends: 2012, Kleiner Perkins Caufield & Byers, December 2012
Time Spent Ad Spend

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Changing How Consumers Shop


Even though mobile is still relatively new, its already changing a consumer purchase funnel thats dominated marketing thought since advertising pioneer E. St. Elmo Lewis first identified it over a century ago. Historically, shoppers researched, thought about, and then bought something in three separate stages. Mobile users, however, often discover, research and buy a product all at once. In a March 2013 study, Nielsen and Google found that within an hour of using a mobile device to look up information about a product or service, 51% of mobile searchers visited a business, 56% called the business, and 54% made a purchase. (Fig. 1.4, Mobile Searches Trigger Quick Online and Offline Action) Fig. 1.4 Mobile Search Triggers Quick Online & Offline Actions
Source: Source: Google/Nielsen Life360 Mobile Search Moments, Q4 2012

Mobile shopping often happens away from the home. In the same survey, Nielsen found that 43% of mobile users who use a smartphone to research products or services are on the go, and nearly one third are in a store while they search. In fact, shopping queries are twice as likely to happen inside a store as elsewhere, according to Nielsen. As more consumers use mobile devices to make purchase decisions, it no longer makes sense to rely on TV ads to generate awareness and drive action days later. Hyperlocal targeting gives marketers a way to share messages with consumers at times and places where it matters.

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