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.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, and we sought to determine how marketers and advertisers put it to use.
For the first ever Factual Location Based Marketing Report, Factual commissioned Lawless Research to survey location data buyers in the United States to discover how companies are using location data for marketing, what features are most important and their thoughts on the marketing duopoly of Google and Facebook. Our key findings include:
Marketers are concerned about the Facebook and Google duopoly in online advertising, and the majority are seeking alternatives. 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.
- Among the brands and agencies surveyed, 92% have one or more concerns about the advertising duopoly
- False impressions (38%), transparency (36%), and pricing (36%) are the topmost concerns about advertising with Facebook and Google
- 71% of marketers are seeking alternatives to the duopoly for online advertising.
- Nearly all (95%) of location data buyers agree that data transparency accurately indicates the quality of the data
Location data increases campaign effectiveness. The majority of marketers are using location-based data for targeting, and it’s working.
- Nearly two-thirds of marketers use location data for targeting ads and promotions, and nearly half for location-based offers
- 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%)
Personalization is a key component in marketing. Consumers are more inclined to buy a product when the experience is tailored to their preferences — but true personalization isn’t possible without location data. They’re also now accustomed to a personalized experience, and Segment recently found that many consumers become frustrated when a marketing interaction is impersonal and doesn’t reflect their preferences. Location-based marketing helps make this happen.
- More than 8 in 10 mobile marketers use location-based data to personalize the customer experience
- 82% use location data to personalize the customer experience and 85% plan to do so in the next 12 months
Ultimately, the results are clear; marketers and advertisers are leveraging location data across diverse use cases and seeing myriad benefits, from increased campaign effectiveness to higher customer engagement. The full Factual Location Based Marketing Report is available for download here, including more statistics and our recommendations for how to best utilize location data in your campaigns.