Location-based marketing is not simply a mobile strategy, it’s also a way of approaching mobile that has begun to solve some of the industry’s thorniest problems — tracking, measurement, and targeting.
The mobile audience has historically been the marketer’s white whale. Mobile consumers have always seemed evasive, floating just beyond the reach of cookies.
That’s where location-based mobile technology comes in. It’s not just about spraying users near a shopping mall with ads. It gives marketers new ways to target and group mobile audiences, and even account for behavioural and demographic segments. Consumers can easily turn off location tracking on their devices if they don’t want to share this information.
In a recent report, BI Intelligence breaks down the leading location-based marketing techniques, and explains the strengths and weaknesses of each. It looks at the data behind LBS, and digs into the differences between junk location-based data, and the real thing. Subscribers also gain full access to our ongoing coverage of LBS and the mobile industry.
Here’s a primer on each leading-edge LBS technique:
- Geo-aware ads are sort of like personalised ads powered by location data. The message contained in the ad changes based on a user’s positioning.
- Geo-fenced ads involves targeting users within a set distance from a business with the same message, it could be within a DMA (Designated Market Area), city-based, or postal code-based geo-fence. This is the traditional and most basic form of local-mobile marketing.
- Place-based targeting refers to the practice of reaching audience clusters over a large area, such as nationally, to achieve scale. LBS ad providers tout their ability to target segments like soccer mums at scale with the help of location data.
- Audience clusters: Location data can be paired with anonymous data on demographics, purchase intent, or other behavioural data to reach desirable audience clusters near a given location.
In other words, location may be a silver bullet that finally allows marketers to more accurately track and target relevant mobile audiences.
In full, the report:
- Offers six local-mobile targeting tactics that drive results, including partnerships with app-driven location-based services that make users’ lives better and improves data collection
- Explains why caution should be used with third-party sources as there’s a great deal of variation in the quality of this data
- Discusses some of the different repositories for mobile data
- Looks at the evidence, including a Yellow Pages study, which found that consumers were most receptive to local mobile banner ads for businesses that were within 2 miles of their location
- Follows the LBS dollars and shift in mobile budgets: e.g., over the course of 2012, Verve Mobile saw an increase in their geo-aware and geo-fenced ads. They went from accounting for 17% of all campaigns in 2011, to 36% in 2012.
To access BI Intelligence’s full reports on Location-Based Mobile Marketing, as well as full-access to our archive of in-depth reports, charts and data, sign up for a free trial subscription.