Location-Based Marketing on the Rise
Location based marketing is a powerful tool and more marketers are investing in this tactic to meet their customer acquisition and retention strategies. In fact, eMarketer predicts that marketers will spend $26.5 billion on mobile-location marketing advertising in 2019.
In a report by Factual, almost 9 in 10 marketers said location-based advertising and marketing resulted in higher sales, followed by growth in their customer base (86%) and higher customer engagement (84%).
More than 8 in 10 (84%) marketers currently use location data in their marketing and ad campaigns, and 94% plan to in the future. Additionally, according to the report, “But with only 24% using location as a measurement tool, there is a huge, untapped opportunity for marketers to leverage location data for measurement, for offline conversion tracking, attribution and insights.”
- Of the 24% of marketers using location data for measurement and attribution, 51% of those plan to increase their use of location data in the next year.
- The primary use of location data is for targeting (67%) and 52% use location data for audience engagement, campaign strategy and customer experience or personalization.
- The top channel for leveraging location data is mobile (81%), but marketers are increasingly using location data in emerging channels, including advanced TV (49%), digital out-of-home (47%), voice/connected speakers (45%), and automotive (28%).
Types of Mobile Geolocation Targeting
Marketing are exploring different ways to utilize location marketing but by far, the most popular is mobile geolocation marketing. Types of mobile location-based marketing include:
1) Mobile Audience Targeting
Using this method of mobile targeting, brands can target relevant audiences with ads based on demographics and other data points. These are consumers who are most likely to fit their ideal customer profile. This audience targeting method uses underlying data about an individual person, or, to be specific, their device ID which can include certain demographic information and even geographic location for more effective and engaging ads.
While mobile audience targeting is becoming more sophisticated, marketers are still challenged with efficiently accessing data at scale to gain a complete picture of a consumer and the likelihood he or she will engage with a particular ad.
2) Real-Time Location Targeting
Marketers are probably most familiar with real time location targeting such as geofencing and beaconing.
Here is a quick overview of the different types of mobile location targeting:
Geo-targeting involves detecting a user’s location and serving them communications based on that location. Those communications might be ads or other content, like an email or push notification.
Geo-targeting uses IP addresses to determine where consumers are. Every internet-connected device has a unique IP. The first three digits provide a country code. The digits after that indicate specific areas within a country, down to state, city, and postal code. Content can also be matched with data about user preferences and activities to home in on specific groups of people or to exclude groups of people you don’t intend to target. Geo-targeting allows a user to be targeted wherever their device goes.
Geofencing is the practice of using global positioning (GPS) or radio …read more
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