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This report analysis from vervemobile.com provides insights into how auto advertisers are finding location powered mobile advertising to be an effective means of driving foot traffic onto auto lots, targeting the "in-market" audiences, and engaging consumers in brand messaging.
Here are a few key take-aways from the report:
A.) Tier 2 is the auto sub-category utilizing location powered advertising the most.
To date, location powered advertising, has been primarily embraced by automakers to support regional dealer groups, aka Tier 2 marketers, because of location powered advertising's proven ability to drive foot & lot traffic. This leaves substantial opportunity for Tier 3 marketers, as only 2% are currently utilizing location powered advertising.
B.) Geo-Fencing and Geo-Conquesting are extremely effective at driving lot traffic.
Analysis shows that for Tier 2 campaigns measured with Geo-Fencing as a significant tactic within the media campaign, the auto campaign's average foot traffic lift was +295%. Similarly with campaigns as Geo-Conquesting as a significant tactic showed an average lift of +377%.
C.) Geo-Fencing and Geo-Conquesting lead to strong ad engagement.
Consumers spend as much time (average 20+ seconds) within secondary "informational" sections of an OEM's ad creative when on competitive lots as they do when on the OEM's lots. This means that in-market consumers are engaged and interested prospects, both on-lot and on competitor's lots.
D.) Location-aware creative outperforms non-location creative
Regardless of campaign objectives, "location-aware" advertising creative - that is advertising that utilized some type of location/mapping engagement opportunity in the creative unit - outperformed other creative by 60% for CTR (click through rate) with an average CTR rate of 0.6% - 0.9%.
It looks like there is tremendous opportunity for Tier 3 marketers in the the geo-conquesting mobile advertising space. With only 2% participation in Tier 3 currently, this is bound to be a game-changer for the effectiveness of mobile advertising in the auto industry.