Brands Know They Need Location Data, but Many Struggle to Quantify the Financial Benefits

Location data is a critical tool for brands and advertisers alike, but understanding how to best choose a location data provider and quantify the benefits can be difficult. That is why Factual commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) Study and examine the potential return on investment (ROI) businesses may achieve by utilizing Factual location data. Marketers rely on location data to improve campaign targeting and produce measurable foot traffic, but challenges with data accuracy and cleanliness continue to plague the industry. Forrester found that Factual customers trust Factual location data and describe it as accurate and high-quality. Using Factual location data delivers multiple benefits, and customers can justify the cost of their investment within the first campaign, according to the study.

“We A/B test different types of data providers out there quarterly. For our client, location-based targeting with Factual data showed better KPI results than our other location partners and that’s how we settled on Factual.”

— Client Success Manager, Global Media Agency, Media Company

The Three-Year Financial Impact of Using Factual Location Data

Based on an analysis of Factual customer feedback and quantified benefit, cost, risk and flexibility factors, Forrester concluded that Factual location data has the following three-year financial impact on advertising initiatives.

Behind The Numbers

To evaluate the potential impact of using Factual location data, Forrester interviewed six agency customers with years of experience using Factual data. Forrester then created a composite organization based on the characteristics of these agencies and constructed a financial model representative of the interviews using the TEI methodology and adjusted for risk. For more information on the makeup of the composite organization and survey methodology, download a free copy of the full report.
Forrester calculated that using Factual location data results in $3.4 million in benefits over a three-year period for the composite organization.

“With Factual, we’re seeing data every day. Everything is coming into the DSP properly. Conversion and store visits information was flowing in daily. Competing data providers campaign results were delivered weeks later.”

— Marketer

Additional benefits of using Factual location data uncovered in the study include:

Lower CPAs

Correlates a device’s location to a unique place or point of interest and pairs it with real-world data and attributes

4X Increased Scale
(without sacrificing precision)

Notes a user’s “state” in the physical world and how it changes throughout the day. Leverage unique user insights to enable granular targeting

Improved profitability

Forrester calculated that profits are uplifted by $2.5 million over three years with Factual activated

Higher CTVs

The ability to reach the right consumers using location data can increase customer lifetime value (LTV)

Better optimization

By using Factual reporting and fresh data to optimize campaigns, organizations can generate a 15% incremental uplift in campaign results

“We like that Factual doesn’t have a media offering; they’re strictly a data company. A lot of the other partners try to sell you their audience data but they also want you to buy their media and run on their media network. Their report will show their media on their network is the strongest performing. That’s like they grading their own homework.”

– Data Sciences Lead, Media Agency

About Forrester

Forrester is an independent American market research company that provides advice on existing and potential impact of technology to its clients and the public. Forrester Consulting is a division of Forrester that provides independent and objective research-based consulting to help leaders succeed in their organizations.

Download the full Total Economic Impact™ (TEI) study today for a closer look at how your organization could benefit from using Factual location data as a component of its marketing