“Surprised Investors” made its way into this week’s business headlines, as Facebook local and mobile ads rose 75% since the last 3-month period. These ads now comprise 41% of their total ad sales, and has contributed to the second quarter success of Facebook, as their profits overall increased 17%.
However, this success speaks beyond mere financial figures. Rather, it speaks greatly of the importance and potential that mobile and local ad sales play at this day and age. With an influx of location-based apps and on-the-go services, mobile advertising should be a key component in any small business marketing strategy. Done right, ads should be placed in a spot, whether or not mobile, where the message will be relayed to greatest target reach possible. And while businesses must figure what the best placement is, ad companies need to provide a platform that is conducive in reaching a substantial audience.
Reaching out to tourists, new residents, or just travelers driving through, investing in mobile and local ads is quite imperative. With mobile marketing, you have the ability to connect with an unthinkable amount of people on a very personal level. Likewise with local ads, where you can reach consumers on a smaller and more one-to-one scale. With location-sensitive apps and physical ad space, you can relay information to a potential customer very quickly with minimal response time.
Facebook now displays ads at 5%, or 1 in every 20 stories on a given Newsfeed, with more and more people positively reacting to them. While Facebook is undoubtedly an innovator in the mobile and local ad space, such a platform is by no means their core competency. This area is one we’re eagerly watching as it continue to unfolds.