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Industry Trends

Location Based Ad Success Stories

By June 28, 2010July 30th, 2023No Comments

Two recent press releases by a maps, traffic and location data provider revealed the results of two location-based ad campaigns conducted on a location-aware advertising network.

One of these trials was conducted in the U.S. and the other was conducted in Finland. The trials were conducted on NAVTEQ’s LocationPoint advertising network, and both trials have yielded positive results.

The LocationPoint service can pinpoint the exact location of a user and based on this information, NAVTEQ can deliver relevant ads to consumers about establishments in that vicinity. When customers click on an ad, they are given detailed instructions on how to reach the advertiser‘s nearest location.

The average click through rate for the month-long U.S.-based trial was 2.49%, which is about 13 times more than the average click through rate of 0.19% for online banner ads. Of the people who clicked on the ad, 39% asked for further information to actually reach the advertiser’s establishment.

Similarly, the trial conducted in Finland, for McDonald’s fast food joints, received a clickthrough rate of 7%, followed by 39% of those users requesting further directions to reach the venue. The ad campaign promoted a McDonald’s cheese burger for 1 euro, which provided a suitable incentive for many users to react to the ad.

These trials indicate that the right sort of location-targeted advertising can be an effective sales tool to convert a potential market into actual clients. It also helps build the case for mobile local ads.

According to Chris Rothey, Vice President of NAVTEQ Media Solutions, “Location is the new demographic. It’s no longer just about age, gender, and socio-economics, but about reaching mobile users who are in a geographic position to buy. These findings show the power of LPA in helping advertisers find location-relevant consumers and guide those consumers into stores.”