Contextual advertising is often confused with geo-targeting. In fact, geo-targeting is a location-specific form of contextual advertising that presents users with local advertising relevant to their interests. Contextual advertising encompasses topic-based targeting, in-text hyperlinks and geo-targeted advertising methods. Each of these marketing methods can provide significant advantages to mobile app developers and advertisers. Taken together, however, they produce synergy that can boost traffic and increase sales in the mobile marketplace.
Understanding contextual advertising
Contextual advertising has dominated the online advertising field for a number of years. These advanced advertising strategies evaluate the content of a particular website or sites to provide advertising content likely to complement that content and meet the viewer’s needs. Contextual advertising essentially allows the consumer to self-select for the most relevant advertisements based on the content that consumer is currently viewing. Contextual strategies can be fine-tuned to include only ads in the local area, ads that relate directly to the topic or ads related to the subject matter of the application or webpage. Mobile advertising networks use contextual advertising techniques to monetize mobile apps and boost revenues for mobile-optimized content. These advertising methods increase the effectiveness of the marketing campaign by presenting relevant ads to the end user.
The mobile marketplace is an ideal environment for geo-targeted ads. Advances in GPS positioning and geo-location services in the mobile phone industry make it easier and more convenient for users to see only ads relevant to their interests. These advances are a boon for advertisers as well. They can choose to display their ads only in the areas where their brick-and-mortar businesses are located, allowing them to achieve more with the same marketing budget. Major search engines use this method to provide their users with local search options; geo-targeting pinpoints the audience and caters specifically to those located in the desired area or region.
Putting it all together
App developers and advertisers can achieve more by integrating both contextual advertising and geo-targeting into their collaborations. By including a few lines of code in the mobile app, developers can incorporate the revenue-building power of contextual advertising into their entire app. Application developers can choose to exclude specific categories of advertisements or certain advertisers; this can allow them to protect their branding and their reputation more effectively. For advertisers, the benefits of combining contextual advertising and geo-targeting are even more impressive:
• Contextual advertising allows the company’s marketing budget to be spent where it is likely to do the most good.
• By targeting consumers who are already predisposed to buy the products or services, companies can boost revenues and build name recognition in the mobile marketplace.
• Geo-targeting allows advertiser to achieve better ROI. Companies can focus their advertising budget to areas where they already have a physical presence, allowing them to get more bang from their buck.
The recipe for success
Combining contextual ads with geo-targeting is the most effective way to reach consumers in the frame of mind to buy. Each of these marketing methods offers significant advantages. When combined, they form a nearly unbeatable strategy that maximizes return on the advertising budget and increases revenues for app developers and advertisers alike.