It is important to note that almost everyone (about 80% of all Americans) now uses a smartphone and uses smartphones to track products and services locally. A recent report by SearchEngineLand found that local searches are growing 50% faster than mobile searches in general.
Local businesses are now able to serve area-targeted mobile ads that are highly relevant to their target audience. They show the right ad, at the right time and in the most appropriate place. This kind of accuracy led to a gradual increase in the amount spent on local online advertising.
Will this be the year of local digital advertising?
In the online world, the term ‘mobile year’ has been discussed for years. Forbes declares for the third consecutive year that 2014 is the year of the cell phone and extends longevity until 2015. LifeHack defines 2016 as the year of the cell phone.
The reality is that people initially used the Internet more often on a desktop and then switched to mobile devices. This is evident from the data collected in recent years. You can measure how people are getting better access to the Internet by looking at the medium with the most advertising spend. These are clearly mobile devices. It shows that we live in the era of furniture.
Here are some statistics for you:
- Facebook’s ad revenue in 2016 is estimated at $ 26 billion, of which about $ 22 billion in mobile ads. That’s almost 80% of total ad revenue, showing that Facebook is primarily a cell phone company.
- Almost 70% of programmatic digital image ads are displayed on cell phones.
- Businesses make two dollars in revenue for every dollar invested in local ads through AdWords.
- Small and medium-sized businesses in the United States spend more on advertising, especially mobile devices. Why is this happening? This is because most people have a smartphone today. How do most people have a smartphone?
Android democratized the smartphone market, introducing cheap and affordable smartphones. So people who previously didn’t buy smartphones because they couldn’t pay or didn’t want to spend a lot of money on a phone now have a much cheaper option.
In the mobile era, companies are shifting their advertising spend from traditional channels to mobile channels to take advantage of this trend. Some of the best mobile marketing channels are:
- Local AdWords audience and Facebook ads. Companies can direct customers some distance from the business address.
- Snapchat filters can be targeted at customers in a specific location. Imagine the impact this can have on a small restaurant next to a major music festival.
- Advertising on Yelp allows you to be listed on the profile of one of your competitors on Yelp as a similar recommended deal, and this is useful on mobile phones.
- Instagram’s exponential growth and popularity among people throughout the day make it an extremely valuable marketing tool for local companies with a focus on design.
- Small local businesses can thrive when they accept that digital marketing exists to stay and dominate. However, if they do not accept this, the 800-pound gorilla will remove them from the appropriate equation.
Amazon is the 800-pointed gorilla in today’s local business and marketing conversations. Prime arrives at Amazon at just $ 8 billion a year in subscription costs. No matter how much money they earn from the products Prime members buy!
Can small businesses compete with Amazon? Yes, but you need inspiring ideas and skillful execution. Let’s look at the example of local chains in the USA, such as CVS. CVS is great in major American cities. However, thanks to Amazon, its stores are increasingly being redeemed.
How can they compete then?
Here are some interesting statistics about local advertising:
- More than half of local searches on mobile devices lead to a visit to the store.
- More than 60% of local searches are made by users who have not yet made a decision about a store, which means that there is traffic intended to
- Three out of four buyers say they are more likely to respond to an ad based on location.
- One in three mobile searches is local, which means that there is a keyword related to the location. For example, a restaurant near me or a bar closest to me.
- Just under 70% of customers expect business search results to be less than three miles from their location.
How small and local digital ads can be Local enterprises like automotive dealerships will probably never deal with a digital competitor. It is possible that at the start of the 21st century, there were fears among car dealerships that places like eBay could occupy some space in the business of selling cars. However, today even used car dealerships are thriving. This shows that online selling has not made a big difference to the way cars are sold.
Other companies that operate locally, such as restaurants, also do not necessarily have to be partners with Amazon but are against local delivery organizations and services that serve meals in your office. Here is also an opportunity. Just because a company has nothing to do with Amazon’s competition and is therefore on the verge of extinction, it doesn’t mean that it doesn’t need creativity in the digital world to stay relevant.