Localizing Advertising Budgets

According to US Census data, 75 percent of consumer spending occurs within 15 miles of the average American’s front door, meaning 50 percent of the nation’s GDP is dependent on consumers buying locally. With these statistics in mind, it’s important for brick-and-mortar businesses—and the brands that sell within them—to connect with consumers to drive them into stores.


Over the last six decades, newspapers, magazines, TV, radio, direct mail and free standing inserts were the primary channels for reaching and serving ads to a target audience. More recently, advertisers have recognized the importance of digital advertising and have been putting more of their local advertising dollars online. According to a report by media research company BIA/Kelsey, the rate of digital ad growth outstrips total local media expenditures and is expected to rise 2.6 percent annually through 2016 to $151.3 billion.

So what do advertisers and brands need to consider when allocating local advertising budgets online?

  • It’s the scale and reach, cost-effectiveness, speed and flexibility of digital that enables advertisers to efficiently drive in-store traffic. Digital intrinsically offers greater flexibility for a campaign, and localized digital advertising solutions allow advertisers to target different ads to different neighborhoods around the country.
  • Not every consumer lives within close proximity of a retail store. National retailers waste a lot of national ad spend on consumers who live outside a store’s retail trade area. This waste gets only more pronounced as retailers get more local. With localized advertising solutions, only consumers who match a retailer’s shopper profile and who live within a specific radius of a retail location will see your ad.
  • Although most advertising programs require brands and retailers to create campaigns weeks or months in advance of when they’d like to generate interest in their product or services (for example, during a certain time of year or around a special event), highly localized digital campaigns of any size can launch within a matter of hours because you can leverage existing creative assets.

[via iMedia Connection]

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