Report: Geo-Conquesting Mobile Ads Deliver 11% Conversion Lift

XAD | 08 / 14 / 2013

This morning local-mobile ad network xAd released its Q2 Insights Report. The report focuses on trends related to “geo-conquesting” on its network. In March, xAd told me, among “national [xAd] advertisers that are leveraging place-based targeting, which is 67% .  . .  9 out of 10 are doing conquesting.”

As a general matter xAd’s advertisers are using location in two very distinct ways:

  • Audience targeting (where location is a mechanism for developing audience profiles)
  • Geo-fencing/geo-precise targeting (where conquesting is a subset)

In the audience targeting category, location is largely in the background. This technique is now quite common across several mobile ad networks. With geofencing/geo-conquesting the campaign is all about specific locations.

In its Q2 report xAd contrasts the top ad categories on its network with the top geo-conquesting categories.

Overall xAd’s ad inventory, the company says, outperforms mobile ad-industry norms and benchmarks — both in terms of clicks and conversions (measured in different ways). The figures below reflect only CTRs, which is a generally poor metric for mobile ad performance.

Despite the appearance in the graphic below that geo-conquesting doesn’t perform as well as general location-targeted display, secondary actions data (post-click) reflect they typically outperform conventional location-targeted ads — which in turn outperform regular mobile display ads.

In a case study involving Outback Steakhouses xAd showed that engagement and intent to buy (as measured by landing page store locator lookups) was significantly higher with geo-conquesting ads. The company said, “Post-click activity was highest on the geo-conquested portion of the campaign showing an 11% lift on conversion actions such as access to a store locator.”

The Outback campaign used 5 and 10 mile geofences around various competitor restaurant locations and sought to stimulate visits from loyal customers and potentially change behavior among those considering other causal dining establishments.

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