As of a year ago, only 40% of mobile ad campaigns involved some kind of targeting. Many companies are working to change that ratio–making it easier for advertisers to target mobile consumers based on their demographics, location and previous behavior. Some, like Spotzot, are also offering the opportunity for advertisers to dynamically generate ads that deliver a specific product, offer or location to interested shoppers–in realtime.
The company claims that its SpotAds, which officially launched today, are 40% to 70% more effective than traditional mobile ads. In tests the company ran earlier this year with brands such as Macy’s, Wal-Mart, and Best Buy, 4% to 12% of shoppers who clicked on Spotzot’s ads subsequently visited stores. (How this was measured: shoppers who clicked on a BestBuy ad while they were not near a BestBuy store, and then again clicked an offer from BestBuy while at the store within a 72-hour period after the initial click.)
The company’s platform dynamically converts relevant promotions from the top 1,000 U.S. retail chains into catalogs of offers grouped by category and price that match the interests and locations of up to 100 million shoppers. SpotAds can deliver instant coupons based on shopping intent and store proximity; coupon codes based on store proximity; nearby store locations, driving directions and click-to-call telephone numbers; and deep links to e-commerce sites and online price comparison.
This is all based on the company’s relationships with more than 50 publishers–retailers such as Best Buy and Macy’s–which gives Spotzot access to shopper interests and search history. The company publishes API’s around this data that let retailers integrate the data with solutions such as QR code scanners, social recommendations, digital wallets, mall-centric shopping, check-ins and more.
By tracking each shopper’s activity, SpotAds can target offers based on individual preferences in subsequent shopping encounters. It’s this ability to target offers based on both previous preference and location that yield an average CTR that the company says is 10x to 30x higher than ads on traditional platforms.
But it’s when offers are dynamically generated in realtime to match shopper interests that the company sees the highest response rates. A Spotzot spokesperson says that its “non-exclusive SpotAds” typically generate a CTR between 5-10%. But its “Exclusive SpotAds,” which dynamically convert promotional merchandise into catalogs of offers that match each shopper’s interest and location in realtime, generate a CTR between 40-70%, depending on the product category and offer type.
Have you started experimenting with targeted mobile offers or ads?