Hyperlocal advertising targets audiences in small geographies, starting from few hundred feet within a point of interest (POI), a street or a neighborhood, although a target area may be bigger as deemed fit by a merchant or a brand depending on where their local audiences are and their shopping preferences.
According to figures released by BIA/Kelsey, US local ads spending is expected to hit $151.2B in 2018, a 5.2% increase over $140.9 billion in 2017. 64.7% of this spend is expected to go towards traditional media while rest going towards digital channels.
Digital advertising outfits, be it local, regional or national agencies, or digital platforms face enormous sales and marketing challenges in building a demand channel at scale. For local and regional outfits, tenancy based pricing for merchants is perhaps the most attractive proposition to generate recurring revenues. Two blocks in Manhattan has ability to generate $20,000 in monthly demand as proven by some digital outfits ! National digital agencies and brands with local campaigns usually rely on innovative solutions from digital platforms that aggregate hyperlocal traffic.
Sourcing and aggregating hyperlocal traffic though has been relatively easier because of pervasive use of smart phones across the globe. According to a new report from AppAnnie, users access over 9 apps per day or 30 apps on a monthly basis with South Korea Brazil, Mexico, Japan and India showing highest average time spent every day. This has created opportunities for app developers, publishers, exchanges and demand side platforms to aggregate and access geo tagged traffic and build hyperlocal solutions. Some digital outfits have attempted to offer geo-contextual targeting by aggregating local pages on large and long tail websites.
Audiencelogy offers geo fencing features to its clients on the DSP platform. Its a powerful feature to create multiple points of interests and target ads to mobile users from local merchants and advertisers.
Contact our sales team today to help you strategize and execute your next hyperlocal campaign.
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