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02.05.2014
In the past few years, we have witnessed what is possibly the most rapid adoption of technology by the masses.
The holy grail of information delivery is the ability to be able to push the right information to the right user at the right time and place from the right store.
The system needs to have comprehensive and detailed information both about the user and the stores. The system needs to be able to process the information correctly to understand context so that the correct information can be given to the user.
True hyper-local mobile startups are essentially companies working on building such an information delivery system that is based on a user’s location, habits  and other input parameters to   and understand context and then provide users with the right information from offline stores be it offers, products, menu, etc. Information distribution: Most offline businesses rely on traditional media to be promote themselves or yellow pages to be discovered. New user acquisition and user retention: For online businesses, new user acquisition is relatively easily as various ad networks help drive traffic to a website. To improve user retention several offline stores work on a loyalty points based model so that they can collect data about a user and then reach out to them. Analytics: Websites and apps constantly monitor metrics bounce rate, repeat visits, page views and they strive hard to improve them by looking at numbers, running experiments and figuring out what works. Without sources to distribute information, networks to acquire and retain users and tools to measure what works and what does not, offline business are truly handicapped and have to resort to means like pamphlet distribution, buying expensive hoardings or run half baked loyalty programs all of which are very inefficient but the best what the current system can provide. Intelligently target those users by understanding context like location, time of day, preferences etc  so that information given to a user is relevant and useful. Give back information to stores on what works and what does not, then offline store could easily grow their user base, improve retention and reach out to a wider audience and hence solve one of the most crippling problems that companies like Google, Facebook et al have been trying to solve since a long time.
Since launching in 2002, Crisp Media has been on a mission to convert Sunday circular promos to location-based mobile advertisers that change on the fly with personalized products. The combination of hyperlocal targeting and programmatic ad exchanges has opened up a whole new world for advertisers. When you combine this with the ability to purchase ad impressions individually, through programmatic ad platforms that are powered by real-time bidding, marketers now have a cost-effective way to engage their audiences in a manner that matches ads to the context of their physical location. When a person uses an app on their smartphone, the app may ask for permission to access the location data of the phone.
For other apps, like Flixster, which allows you to find movies playing nearby, it’s not crucial to enable location sharing, but, it definitely makes the app more useful. If an app user accepts this location-sharing request, the app will basically be aware of their GPS coordinates at all times. Based on our company’s view into multiple marketplaces, about 44% percent of mobile inventory in programmatic ad exchanges is location-aware.
Basic Radius – At its most basic level, hyperlocal simply involves creating a zone or “geo-fence” around a GPS coordinate, and targeting all users that pass through it. The reasoning behind basic radius hyperlocal is the same as the reasoning for targeting a particular website: you are essentially targeting a location where you believe a specific audience congregates. An additional use case would be for a local business with a physical location within that basic radius to target ads to people in its proximity, with the aim of driving foot traffic.
Contextual – In the desktop world, contextual targeting usually refers to the content of a specific web page: that is, keywords, language, sentiment, category, and so on, appearing on the page. These are just a few of the examples of the types of contextual targeting data that can be used for hyperlocal advertising. For example, you could target a conference center hosting an industry trade show at a hyperlocal level.


Using geo-contextual and behavioral insights gleaned from that audience, you could then determine certain characteristics (such as neighborhoods, demographics, interests, and other data) that index high for that group, and subsequently launch another campaign that targets anyone with those characteristics. Some opinions expressed in this article may be those of a guest author and not necessarily Marketing Land.
Ratko Vidakovic is the founder of AdProfs, where he teaches marketers about programmatic advertising technology. MarTech: The Marketing Tech Conference is for marketers responsible for selecting marketing technologies and developing marketing technologists. SMX Advanced, the only conference designed for experienced search marketers, returns to Seattle June 22-23. Selling to local merchants is a challenge in a post-Groupon world, where many small business owners have grown skeptical of the long-term value that digital marketing solutions can provide.
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Mobile phone have become ubiquitous, internet speeds available now are 10x compared to what was available even 2-3 years ago, growth of smartphones across the world has never been higher, computation power and storage space that would fill up a box now sits comfortably in our hands. What is important to note is that such companies could not have existed 3-4 years back simply because technology wasn’t good enough. Build a product, distribute information about the existence of your product, get users to use your product, measure what works what doesn’t and repeat. Go and talk to a restaurant owner and you will realize how incredibly difficult it is for them to reach out to and be discovered by new users.
For an offline business, there is no analytics to tell them which users did what, there is no user based personalization, in the real world there are no cookies. Running an offline business is tough, online store are eating up their margins, growth is slow and scale is difficult to achieve. And this is the exact opportunity hyper-local mobile start-ups are creating for offline business.
The New York-based mobile tech player has evolved from building rich media ads to developing hyperlocal mobile promos aimed at tracking the entire path to purchase for clients like Unilever, Walmart, McDonald’s, American Express and Chrysler. Hyperlocal, as it’s called in ad tech circles, allows marketers to use a smartphone’s GPS data to geographically target audiences for the purpose of delivering relevant ads. For check-in or dating apps like Foursquare’s Swarm and Tinder, the app is essentially unusable if you do not accept.
If the app also happens to be supported by ads, it’s highly likely that these coordinates will be passed along to the ad network or ad exchange that sells the ad space to advertisers.
That amounts to over 7 billion impressions per day — a tremendous amount of ad inventory with which to reach audiences in a hyperlocal manner.
Once you understand that audiences can be targeted at the hyperlocal level, the next step is understanding the various targeting options available.
Targeting an audience by proxy might seem crude, but is actually quite effective in both cases. It should be noted, however, that contextual data can also be used for the purpose of extracting insights about audiences from broader mobile campaigns. And the potential applications for this targeting technology is bound only by your imagination. As the adoption of location-aware apps grows, and smartphone proliferation continues, the possibilities and potential for growth in hyperlocal mobile advertising will only continue to expand.


He started his career in 2001 as a publisher, co-founding ToyotaNation and growing it into the web's largest Toyota enthusiast community. Early stage hyperlocals without established track records have additional hurdles to overcome, as they struggle to prove themselves in a crowded marketplace. Each smartphone today comes pre-fitted with a wide variety of sensors which continuously keep users data from being consumed by millions of apps out there.
Social media and online doesn’t work because most of these channels cannot do regional targeting. They are providing them with a scalable, easy to use platform to reach out to the right user, at the right place and the right time.
Most buying platforms have either a mapping integration built-in, or allow you to upload a list of GPS coordinates that you want to target. You could then capture the device IDs of everyone in that radius for subsequent retargeting. All these obstacles are forcing hyperlocal vendors to get creative with the way they target local merchants, foregoing traditional tactics like cold calls and feet-on-the-street in favor of email drip campaigns and strategic community partnerships. All of this data gives us a lot of information about the users and helps apps understand context. We are already seeing that with taxi companies like Uber and local delivery companies Instacart etc and this is only going to grow. The ability to quickly scale and reach out and tell a potential user about the features that their product has literally does not exist. After several years as a digital marketing consultant, Ratko joined SiteScout as part of the founding team. There’s no more certain way to invoke a negative response than to interrupt the normal flow of business to try to make your sales pitch — no matter how short.
It costs money, but there are not a lot of better options on the web [that work] this fast. And understanding context helps apps and websites provide users with information that they are looking for or, in the case of assistant apps like Google Now, might need. At SiteScout, he built the marketing machine that grew the DSP business to over 60,000 users and 8-figure revenue — all without an outbound sales team, and all on a shoestring budget.
It takes longer than knocking on doors, but it also scales a lot better and most startups that build themselves an army of door-to-door salespeople don’t have great economics.
First you have to see if there is a natural way of getting the email addresses [of potential clients]. So be sure to go during a slow time, when the manager or owner can take a free minute to listen to you and consider your pitch in a non-stressed state of mind. Take the keywords you bid on in AdWords and start writing copy around them, starting with your most relevant keywords. In today’s information and data driven world, you are the product and every company tries to push more information to you based on the data that they have on you. These need to be good, and there are a lot of systems out there for sending them — MailChimp is an easy one.
A rule of thumb is that a lead needs roughly seven interactions before it turns into a customer.



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