2018 Location-Based Marketing Report - Amazon S3
[Pages:14]2018 Location-Based Marketing Report
Practices, Preferences and Plans for the Future
Sponsored by:
Independently conducted by:
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Introduction
With two-thirds of the world's population now connected by mobile devices, location data has emerged as one of the most powerful and important data sources. Location data is used to solve hard problems--from providing firefighters and emergency medical technicians key information during times of crisis to helping us avoid bad traffic.
Location data also makes our lives more convenient. Can you imagine using mobile apps like Uber, Google Maps or Yelp if they weren't powered by location data? It's not a pretty picture--the experience would be cumbersome. On average, people use nine mobile apps daily that often employ location data to help them navigate their lives; we have come to expect our favorite apps and services to use location to be more relevant. It's changing human behavior, which means cutting-edge marketers are changing too.
In 2017, U.S. companies spent $17.1 billion on location-targeted mobile advertising and a BIA/Kelsey study forecasts spending will increase to $38.7 billion in 2022. In other words, a huge part of future advertising will revolve around serving up the right offer at the perfect place and the correct time.
Does location data make marketing and advertising more effective?
Factual, the leader in global location data, commissioned Lawless Research to answer this question, as well as these: ? How are companies using location data, and what is its impact on digital campaigns? ? What features are most important to location data buyers? ? What concerns do marketers and advertisers have about the Google and Facebook
duopoly, and are they seeking alternatives?
To answer these questions, we surveyed 700 location data buyers in the United States, including 534 from consumer brand companies and 166 from advertising and marketing agencies.
2
The respondents told us that location data helps them grow their customer base, increase response rates and engage customers through personalization.
They seek out data that is accurate, precise and validated. And, serious concerns about the digital ad duopoly of Facebook and Google are driving them to discover alternatives.
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Survey Highlights
Using location data boosts effectiveness of marketing and advertising campaigns.
Achieved growth in customer base
Experienced higher response rates
Saw higher customer engagement
85%
Yes No
83%
Yes No
83%
Yes No
Achieved Growth In Customer Base
Experienced Higher Saw Higher Customer
Response Rates
Engagement
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0010001111001010011100010001
0010001111001010011100010001
0010001101100101001110001000
10010010010001111110100100110010010111101000010010000100
Location data users rate quality
01001010000101111001101001001100100100111110000001100010
as the most important fe1a0t0u0r1e1,11001010010111000001100010000001101111001100110010011001001011110100001010001
and 95% accurate
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Most Importa0n0t11D1a0t0a10L0o1c0a1t0i0o1n11F0e00a000t1u10r00e10s01000011111001010011100010
000111100101001011000001100001001000011111001010011100010
0001000111001010011010010000100010
1
Quality No Yes
of
Da0ta10(A00c1c1u1r1a0t0e1a0n10d01P1re110c00i0s0e011)00010111000010100111000100010
Increased campaign effectiveness
1000111100101001110001010001001
000111100101001110001000100
2
Data No Yes
Validation
and
Fraud
Avoidance
Increased campaign effectiveness
3
Increased campaign effectiveness
Scale No Yes
or
Potential
Reach
Campaign effectiveness increases when locationbased data is used to personalize the customer experience.
CCoonncceerrnneeddaabboouutttthheeGGoooogglleeaannddFFaacceebbooookkoonnlliinneeaaddvveerrttiissiinngg dduuopoly
Increased their understanding of audiences
91%
Yes No
87%
Yes No
Concerns about the duopoly are driving online advertisers to seek alternatives.
Increased campaign effectiveness
84%
Yes No
CCoonncceerrnneeddaabboouutttthheeGGoooogglleeaannddFFaacceebbooookkoonnlliinneeaaddvveerrttiissiinngg dduuopoly
92%
Yes No
Seeking alternatives to the duopoly
71%
Yes No
Increased Their Understanding of
Audiences
Created Positive Customer Experience
Increased Campaign Effectiveness
Concerned About the Google and Facebook Duopoly
Seeking Alternatives to the Duopoly
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Using location data boosts effectiveness of marketing and advertising campaigns.
Companies that use location data in marketing and advertising are seeing benefits across diverse metrics.
More than 8 out of 10 marketers say location-based advertising and marketing produced growth in their customer base (85%), higher response rates (83%), and higher customer engagement (83%). Using location data also gave them deeper knowledge of their customers' needs and interests (77%), improved ROI for their marketing and ad campaigns (74%), and increased lift (70%).
Have you experienced the following benefits from using location-based marketing
Have you experienced the following baendn/eofritasdfvreortmisinugs?ing location-based marketing and/or advertising?
Growth in customer base
85%
Higher customer engagement
83%
Higher response rates
83%
Deeper knowledge of cust omers' needs/interests
77%
Improved return on investment
74%
Increased lift
70%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Geo-marketing is only going to become larger because of new
advances in technology and I look forward to it.
Retail/eCommerce Respondent
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Campaign effectiveness increases when locationbased data is used to personalize the customer experience.
A Boston Consulting Group study found consumer brands that create personalized experiences are seeing revenue increases of 10 percent -- two to three times greater than brands that don't. Other research also reveals that consumers want personalized content from brands, that they feel more connected to brands when they receive personal content and that they get frustrated when they don't. ?58% of consumers say a personalized experience is very important when purchasing
from a company, and 57% of consumers say they're willing to share personal data in exchange for personalized offers or discount (Salesforce 2016) ?80% of consumers indicate they are more likely to do business with a company if it offers personalized experiences, and 90% indicate that they find personalization appealing (Epsilon 2017) ?71% express some level of frustration when their experience is impersonal (Segment 2017)
More than 8 in 10 mobile marketers use location-based data to personalize the customer experience. This study shows that mobile marketers recognize the value of personalizing campaigns with geolocation. Among the companies surveyed, 82% use location data to personalize the customer experience, while 85% plan to do so in the next 12 months.
Is your company currently using locationbased data and targeting to personalize the customer experience? Increased campaign effectiveness
82%
Yes No
15% Do you planInctreoaseddcaompasignoeffeicntivetnehsse next 12 months?
85%
Yes No
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Location-based personalization creates positive customer experiences and increases campaign effectiveness. Marketers that personalize their ads with location data experience a range of benefits including increased understanding of audiences (91%), positive customer experience (87%), more effective campaigns (84%), and more accurate targeting (62%). Over half also see a lift in sales and higher conversion rates.
Which of the following benefits have you experienced from location-
Which of the following benefitsbhaasevde aydoupeerxspoenraileiznacteiodnf?rom location-based ad
personalization?
Increased understanding of audiences
91%
Positive customer experience
87%
Mor e effective campaig n
84%
Mor e accurate targeting
62%
Higher conversion rates
53%
Sal es lift
53%
Store visitation lift
35%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Location-based advertising is a growing area to be utilized in business
strategy.
Professional Services Respondent
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Marketers rate quality as the most important feature of location data and say transparency
is
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an 01001010000101111001101001001100100100111110000001100010 10001111001010010111000001100010000001101111001100110010011001001011110100001010001
accurate indicator of quality.
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Marketers are demanding better quality location data, and they want to know how 100011110010100111000001100000011101001100101001110001000
data is built and where it comes from. Brands and agencies rely on location data to 000111100101001110010010010000100000110111001010011100010
make strategic decisions, so the quality of data is critical. When asked to rank the most001101110010100111000001100001001000011111001010011100010
important features of in importance is data
location data, marketers rated validation/fraud avoidance.
quality
of
data
as
foremost.
Secon00d0001111110100100100110010010111101000000001010010100000011100001000000101101111101100001100110000111111000000110 00011110H01o0w1i0s0t1h0e1q1u00a0l0i0t1y100o00f10l0o10c0a00t11io1n11d0a0ta10e1va0l0u1at1e1d0?0010
00010001U1n1d0e0r1s0ta1n0d0in1g101t0h01e000t0r1u0e0q0u1a0lity of data can be
What are the most important data location features?
01000111c1h0a0ll1e0n1g0in0g1.1H11ig000h0-0q01u10a00l1i0t1y110lo00c0a1ti0o1n0d0a1ta11is0b0o0t1h00010 10001111a0c0c1u0ra1t0e0a1n1d1p00r0e10c1is0e0, 0b1u0t 0it1can be difficult
1
Quality No Yes
of
data
(accurate
and
precise)
00011110t0o1d0e1f0in0e1e1x1a0c0tl0y1w0h0a0t1t0h0at means. Asking
Increased campaign effectiveness
2
Data No Yes
validation
and
fraud
avoidance
the following questions of data sources and providers can help: Is the data derived from
Increased campaign effectiveness
3
Scale No Yes
or
potential
reach
Increased campaign effectiveness
a trusted source? Is the data linked to a GPS location at an exact time, or is the location
4 PYNeors ivacy-safe methodology
derived from an IP address or cached location?
Increased campaign effectiveness
5
Ease No Yes
of
integration
/
Ease
of
use
Increased campaign effectiveness
6 Price No Yes
What about data hygiene? Is the data error-free or are fields mislabeled or truncated? What technology is used to ensure accuracy?
Increased campaign effectiveness
7 FYNleos exibility of audience customization
Increased campaign effectiveness
8 RYNeoes putation of data provider
Increased campaign effectiveness
9 A YNeosudience granularity (number of consumer attributes)
Increased campaign effectiveness
10
Service No Yes
&
strategic
guidance
Increased campaign effectiveness
Validating location data is necessary to ensure its quality. According to Thinknear, only 30% of user coordinates in mobile adtech are of sufficient quality for effective targeting, so a good validation process identifies and excludes: ?Truncated coordinates with fewer than three
decimal places
? Invalid coordinates, such as (0,0)
?Out-of-bounds coordinates, such as outside
the bounds of the earth or in the ocean
?Blacklisted coordinates with unreasonably
high mobile traffic
? Bad devices and bad apps
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Transparency is a proxy for data quality. Marketers require data transparency so they can analyze their efforts and optimize accordingly. Because the quality of location data can be difficult to assess, buyers look to transparency as a proxy for quality. Nearly all location data buyers (95%) agree that data transparency accurately indicates the quality of the data.
Over the past year, questions have been raised across a variety of publishers and platforms about the validity of data transparency, metrics accuracy, measurement and more. Data is often bundled with media spend, and opaque data practices come with a cost, limiting marketers' flexibility, control and ability to fine-tune strategies.
The online advertising duopoly of Google and Facebook contributes to the need for transparency and alternative data sources throughout the industry. Data is locked within walled gardens, and marketers are unable to learn from it or apply it outside of the siloed platforms. Transparent data, which is platform and use case agnostic, is critical in allowing marketers to understand and best reach their audiences.
Data transparency is an accurate indicator of data quality. Data transparency is an accurate indicator of data quality.
45%
41%
40%
37%
35%
30%
25%
20%
17%
15%
10%
5% 0%
Strongly agree
Agr ee somewhat
Agree slightly
3%
D isag ree slightly
1%
D isag ree somewhat
1%
Strongly disa gree
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