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Radio broadcasters see uptick in ad revenue on location-based targeting
Radio groups such as Sinclair Broadcast Group, Cumulus Media, Beasley Media, Digity, Radio One, Delmarva Broadcasting and Saga Communications are targeting mobile users based on current and past locations to drive in-store traffic.
Radio broadcasters are serving their marketing partners successful advertising results through location-based mobile advertisements, driving in-store foot traffic to retailers. The stations are seeing positive results, as marketers have discovered an uptick in sales driven by the mobile ads and broadcasters are increasing the location-based ads.
"Location is critical in mobile advertising," said Martin Kristiseter, vice president of mobile solutions at Marketron. "Through our ad platform, we enable our partners to deliver mobile campaigns that leverage location to better understand consumers, deliver better ad experiences, and evolve the way our partners engage with their customers."
Radio broadcasters are increasingly adopting the location ad solution developed by Marketron, following positive results. For instance Delmarva Broadcasting 13 percent of its digital revenue comes from location-based advertising and Digity?s West Palm Beach is seeing about 20 percent of its income from the ads.
After just one year, numerous radio stations are flocking to increase their revenue through this solution. Marketers are more inclined to advertise with the stations due to the benefits of location targeting.
The advertising technology delivers ads based on current and past location information. The solution can determine if consumers have been to competitor locations and delivers ad content such as rival offers that will draw them away from competition and to the marketer.
If mobile users are close to a bricks-and-mortar location, advertisements for the retailer will appear. Also, if customers have visited the store location before, ads will remind show up to entice them to return.
For instance, if a consumer is near an Audi dealership or has visited on in the past, the solution will serve Audio ad content to the user. If the car shopper is located on a competitors? lot, Audi advertising will attempt to steer them to its location with cheaper deals.
As it has become more difficult to bridge mobile marketing ventures with bricks-and-mortar locations, the platform is making significant strides for these broadcasters in terms of ad revenue.
Location, location, location
Location-based ad targeting can be a highly beneficial tool for marketers, and brands should take note.
Customers who frequent the same locations at the same time typically have similar purchase preferences, pointing to how marketers can enhance their advertising strategy by tapping the location history of consumers, according to a report from Columbia Business School (see more).
Also, Executives at the 2015 Mobile Marketing Association Forum New York revealed that 68 percent of mobile marketers are leveraging location-based targeting and using it as a target parameter in their media buying, although mobile still remains a small component of many digital budgets (see more).
"The main goal is to bring our broadcast clients into the mobile advertising world, quickly, with the best ad stack in the market that is tailored to their needs," Mr. Kristiseter said. "We strongly believe that our partners have a great opportunity to get their fair share of the $28B mobile advertising spend and we are seeing real proof of that after just our first 12 months with our solution.
"The mobile ad spend bucket holds a lot of promise for our station partners to help increase the revenues for the stations and better serve their advertisers," he said. "In addition, their advertisers are also looking for more solutions from their station partner.
"Our partners have great digital and mobile assets, but we help bring significant scale through our 40+ SSP integrations to make sure we can place ads across any and all inventory in the market place vs just the station apps/sites. We will be at 1,000 stations by end of year, we have over 6,500 station partners in North America, so we're just getting started."
Final take Brielle Jaekel is editorial assistant at Mobile Marketer