POIdo, one of a number of location-based advertising startups, is putting a new spin on the concept. The Moscow-based company is able to target advertisements at users based on their exact locations, the context of them being there, and their recent behavior in other applications on their phones.
[aditude-amp id="flyingcarpet" targeting='{"env":"staging","page_type":"article","post_id":197792,"post_type":"story","post_chan":"none","tags":null,"ai":false,"category":"none","all_categories":"business,mobile,","session":"A"}']A pay-per-action advertising platform, POIdo is able to deliver ads when mobile users happen to approach a certain virtual billboard, or when they search for specific addresses that happen to be nearby. Advertisers compete for a limited amount of ad slots for every given location in an auction-based model online so that mobile users don’t feel overwhelmed or spammed. According to POIdo, location-based ads can convert as many as 20 percent of people who see them into customers.
“POIdo is the world’s first location-based advertising platform that creates a competitive marketplace where the price of advertising is determined by the market,” the company says. “Advertisers compete for ad visibility.”
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In addition to serving marketing messages, POIdo can also be used to send coupons, special offers and event information to users when they are near relevant locations. The billboards that prompt ads to pop up can be placed at optimal locations, not just at businesses. It has also released its API for publishers and advertisers to spur development of third-party apps built on top of the platform.
POIdo launched in March, and is currently available to local businesses and entrepreneurs in and around Moscow. It’s planning to come to the U.S. later this year.
The startup will compete with Cirius Technologies, the Japan-based developer of AdLocal, as well as NAVTEQ LocalPoint, and Adenyo, now that it has acquired MoVoxx. Placecast, Ulocate and ReachLocal have also carved out niches in the location-based advertising arena, and may rival POIdo more directly as it scales.
The company brings in revenue by taking a percentage of all advertising revenue it helps generate.
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