Two independent players, eTargeting and Kavanga, have almost simultaneously introduced hyperlocal ad targeting – a technology that provides user location data accurate to less than one kilometer – on the Russian market.
While eTargeting employs its own hyperlocal targeting service, Kavanga has partnered with Digital Element to adopt its patented technology called NetAcuity Edge.
The idea behind hyperlocal ad targeting is simple but important for retailers who combine online and offline sales. Ads can be shown, and consumers engaged with, in the vicinity of a shop, service center, restaurant etc. For instance, many automotive dealers say that store location is extremely important to their clients.
Both Kavanga and eTargeting determine users’ locations based on their IP addresses thanks to databases that can match an IP address with a certain area. In addition, eTargeting uses data from 3G and 4G mobile networks, as well as information about Wi-Fi networks.
“The process of linking an IP address to a geographic location started in 1999 and since then the technology has become more and more sophisticated and precise,” said Yoann Franc of eTargeting in an exchange with East-West Digital News. “‘Hyper local targeting’ was a buzz word in the USA and in Europe in 2010, and it is still growing. Companies are increasingly focused on the local online market, and local online advertising is on the verge of impressive growth as local businesses gain access to better technology.”
While Kavanga has just added hyperlocal targeting to its list of campaign instruments, eTargeting claims to have already launched 10 campaigns based on the new feature.
Among other technologies recently introduced on the Russian online advertising market – which neared $2 billion last year – is real-time bidding (RTB). In the first half of 2013, three players started operating in this segment – Tinkoff Digital, CPAExchange, and Aegis Media – following MyThings’ first move on the market in 2011.
