xAd 2015 global location snapshot final

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July 2015

xAd’s 2015 Global Location Snapshot


To understand the global state of location-based mobile advertising, xAd surveyed 574 Ad Agency Representatives and Marketing Decision Makers at consumer-facing brands across the world to understand current media spend, use of location-technology, and plans for the coming years. Respondents for the online survey spanned 11 countries in four key regions: North America, Western Europe, Asia Pacific, and Latin America. Results of the study can be used to understand major trends and perceptions around location-based advertising worldwide.

North America (n=141)

Western Europe (n=142)

Asia Pacific (n=145)

Latin America (n=146)

Agency Representatives (n=172)

Marketing Decision Makers (n=402)

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2015 Global Location Snapshot


Mobile is a priority for marketers around the globe

More than half of both ad agency leaders and marketing decision maker’s view mobile marketing as a significant priority.

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2015 Global Location Snapshot

Globally, marketers are optimistic about the growth of mobile in both continued adoption among consumers and increased spend from advertisers. xAd’s Global Location Snapshot provides a look into the major trends impacting location-based mobile advertising around the world.

Measurement is perceived as mobile’s limiting factor

3 in 10 marketers worldwide said the inability to measure success was their top concern with mobile location advertising.

Marketers are using the places people visit to reach the right people

Of the 80% of marketers using location targeting, the top strategy is audience targeting, reaching a specific group of people based on their visitation behavior.

Retail dominates globally, additional category popularity varies by region

Across all four regions, retail is one of the top three industries for location-based targeting, which drives significant results in store visits and sales.


19%

38%

24%

19%

27%

42%

16% 16%

Mobile advertising is a top priority

Mobile advertising is a significant aspect

Mobile advertising is a small, complementary aspect

Mobile advertising is not an aspect at all

Marketing Decision Maker

Agency

Mobile is a global priority for marketers 1 in 5 consumer-facing brands and 1 in 4 ad agencies worldwide report that mobile advertising is a TOP priority for their business

Question Used: Q6. Which statement best describes the role of mobile advertising in your/client’s overall marketing plan? Brand (n=402), Agency (n=172)

Mobile Advertising as a Priority

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32%

33%

They are active and engaged with mobile advertising

They are unaccustomed to mobile advertising but could be receptive to it

Consumers are open and receptive towards mobile ads Globally, two thirds of marketers believe their consumers are either currently engaged with mobile or will be in the future

Question Used: Q25. Which of the following statements do you feel best describes your customer base or that of your clients?

Brand and Agency Marketers (n=574)

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Question Used: Q16. In what ways do you use location-targeting as part of your / your clients use location-targeting as part of their mobile advertising campaigns?

Brand (n=402), Agency (n=172)

46%

37%

31%

50%

43%

30%

To target a specific audience

To target consumers around businesses or points of interest

To send location-relevant messages

Marketing Decision Maker

Agency Yes 78%

Use Location for Mobile Ad Campaigns Ways Location is Used

Nearly 80% of marketers are using location targeting Audience targeting is the most common use of location, indicating marketers are aiming to reach consumers not only where they are in the moment, but also based on their behaviors and interests

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Lack of attribution holds location spend back 3 in 10 marketers worldwide said the inability to measure success was their top concern with mobile location advertising

30%

21% 21% 18%

10%

29%

19%

23%

18%

11%

Ability to measure success Education around use cases and benefits of location

Campaign performance Data accuracy Available location-verified inventory

Marketing Decision Maker Agency

Reasons Brands Not Spending on Mobile Location Advertising

Question Used: Q21. In your opinion, what is the biggest factor holding back brands from spending on mobile location advertising?

Brand (n=402), Agency (n=172)

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Mobile and location-based spend will continue to grow All regions expect ad spend to increase over the next year with the most growth coming from APAC and LatAm

30% 31% 29%

38%

13%

22%

11%

18%

North America Asia Pacific Western Europe Latin America

Increase by Less than 50% Increase by More than 50%

Expected Change to Mobile Ad Spend

Question Used: Q10. How do you expect your mobile advertising budgets to change during the next two years? US (n=40), EMEA (n=110), APAC (n=95), LatAm (n=107)

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North America North America is currently the global leader in mobile advertising, with marketers spending nearly $30B in 2015.1 With a relatively developed industry and educated consumers, privacy concerns are top of mind, and location targeting is leveraged heavily.

Western Europe Western Europe is already the second largest market for smartphone use2 making it a prime region for local, mobile ad growth. Marketers in this region share North America’s concern with privacy, and are poised to continue to adopt location based advertising at a steady rate.

Asia Pacific APAC is set to overshadow all other region’s mobile ad spend. By 2019 economists project APAC will spend 13% more than North America.3 APAC leads in device innovation and is made up of primarily developing markets where marketers are using mobile to reach new consumers.

Latin America For many LATAM consumers, mobile is the only internet touch point they own.2 Marketers worry that local attention spans might not hold for mobile ads. However, they show confidence in interactive ads to stand above the mundane.

1. eMarketer March 2015 2. eMarketer “Worldwide Internet and Mobile Users Q1 2015 Complete Forecast” May 2015 3. eMarketer, March 2015


$29.9

$23.7

$12.1

$1.4


2015 Mobile Ad Spending by Region (billions) Source: eMarketer, March 2015

2015 Mobile Ad Spend by Region 10


Top Challenges with Mobile Advertising

Question Used: Q23. In your view, what are the biggest challenges for mobile advertising? US (n=79), EMEA (n=142), APAC (n=145), LatAm (n=146)

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North America Privacy Concerns (24%) Consumers Ignoring Mobile Ads (20%) Lack of Standardized Metrics (14%)

Western Europe Privacy Concerns (22%) Consumers Ignoring Mobile Ads (19%) Lack of Standardized Metrics (11%)

Latin America Consumers Ignoring Ads (21%) Privacy Concerns (17%) Lack of Agency Expertise (16%)

Asia Pacific Privacy Concerns (19%) Consumers Ignoring Mobile Ads (18%) Lack of Mass Market (14%)


Biggest Recent Developments with Mobile Advertising

Question Used: Q24. In your view, what are the biggest developments in mobile advertising? US (n=79), EMEA (n=142), APAC (n=145), LatAm (n=146)

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North America Accurate Location Targeting (22%) User-Created Content (20%) New Devices (17%)

Western Europe New Devices (20%) User-Created Content (19%) Interactive Ads (18%)

Latin America Interactive Ads (30%) Accurate Location Targeting (16%) New Devices (14%)/Real-Time Bidding (14%)

Asia Pacific Interactive Ads (22%) New Devices (22%) Accurate Location Targeting (22%)



Retail Banking Retail Banking

Restaurants Retail Restaurants Retail

Travel Telecom Auto Restaurants/Telecom/Auto*

Top Industries Leveraging Location

*Categories tied for third in Latin America

Question Used: Q18. Across all the companies that work with your agency, what are the top industries you see using location as part of their mobile advertising campaigns?

US (n=39), EMEA (n=32), APAC (n=50), LatAm (n=39)

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Top industries worldwide demonstrate the power of location combined with mobile to not only reach the right consumers digitally but also impact real-world behavior by driving them to nearby storefronts, banks, or restaurants.


Key Takeaways

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•  Mobile and location are key parts of marketing plans worldwide; globally marketers are optimistic about the growth of mobile in both continued adoption among consumers and increased spend from advertisers.

•  Of the nearly 80% of marketers using location for their mobile ad campaigns, the top strategy is audience targeting. The use of location-based audiences shows that marketers are leveraging location not just to reach people based on where they are, but also to understand consumers’ intents and interests.

•  North America is currently leading the regions in terms of mobile ad spend and use of location, however heavy reliance on mobile devices and new innovations in technology and advertisements put APAC in a position for significant growth in the coming years.

•  Industry focus varies by region: North America and Western Europe use location heavily for Retail, while

APAC and Latin America are focused on Banking and Finance.


Global Implications

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Location-based marketing is predicted to become very big, very quickly. Marketing techniques used in traditional and digital advertising (e.g. census-based audiences, cookie profiling) won’t suffice anymore because the world of location-based data demands performance and speed. Consumer expectations are shifting to a mobile mindset – they expect to be able to have what they want, when they want it, where they are – and businesses of all shapes and sizes across the globe need to start thinking about how they are going to leverage this newly available and unique data that mobile and location provide. And, it’s no ordinary data. It’s live, real-time, up-to-the millisecond, accurate data.

The results of xAd’s Global Location Snapshot prove that mobile and location are top of mind for marketers worldwide. They believe consumers are receptive to mobile advertising and plan to grow budgets accordingly. Location is being used not only to reach consumers where they are, but also based on where they’ve been, proving that marketers are maturing in their understanding and use of location beyond the static geo-fence. The biggest issue impacting location-based mobile advertising growth is the lack of a mobile-first attribution model. Privacy concerns are also prevalent across all regions.

However, developments in device technology, ad formats, and especially location accuracy will continue to contribute to the use and adoption of this advertising technique. Mobile and location’s full impact can really be seen in industries like retail, banking, and restaurants where it can be used to influence consumers’ online and offline behavior. Reaching people in the digital world to impact their real-world visitation behaviors.


Stop the Guesswork. Hit Your Mark. For more mobile location insights visit www.xAd.com/location-university

xAd 2015 global location snapshot final

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