Like many other developers, uLocate works closely with ad networks to monetize WHERE, its free mobile app that is available on a number of carrier networks and Android, iPhone and Palm (NSDQ: PALM).
But WHERE often struggled to keep its fill rates high, and when campaigns ran out, it had to use less desirable banner ads pushing ringtones and wallpapers, said uLocate’s VP of Marketing Dan Gilmartin. Today, the Boston-based company is launching an ad network that it created internally to remedy the problem and has been using since December. The ad network, which it calls the WHERE Ads hyper-local advertising network, is now available outside the company, and is being used by various publishers, including Geocade, Jambase, MocoSpace and Superpages.com.
The problem WHERE is solving is a common one that many mobile application developers and publishers are encountering as they generate audiences and millions of page views faster than brands adopt mobile as a potential advertising platform. Gilmartin said it continues to use Quattro Wireless, which was recently acquired by Apple (NSDQ: AAPL), but new sources of local ads dramatically increased click-through rates and CPMs.
How is WHERE doing it?: Gilmartin was a bit reluctant to give away all of its secrets, but said they are working with about a half a dozen local ad providers that work in other mediums, such as directory services, coupons, event sources, and other aggregation services. They provide local offers and ads that can be matched to users who search in the WHERE app for activities or nearby restaurants.
The reaction: Gilmartin said they were able to start replacing ringtone ads for ads that were relevant based on what a consumer was looking for…if they were searching for a nearby restaurant, an Italian restaurant may have popped up. Customers’ reactions were surprising and thanked WHERE ‘for removing the ads,’ Gilmartin said. “It’s contextually relevant to what the consumer is doing, and it’s locally relevant to where they are, and it’s designed to look good in the app, so it’s not an obnoxious banner.”
How things have changed: He said now instead of getting paid per click, often the ads are paid for based on performance, a person may have to visit to website, a menu, or click to call. Then, when a user clicks, they are redirected to a mobile landing page that Where’s made, and can deliver local information to the consumer.
How it is different: All mobile ad networks aspire to provide local ads in their network, but inventories are often low. Results can also vary based on how locally targeted the ad is—is it based on the person’s country, state, city, or neighborhood level? Obviously, the neighborhood ad will be more relevant, but often time is the hardest one to get.