Report explores state and prospects of location-based marketing

June 25th, 2019, Published in Articles: PositionIT, Featured: PositionIT

Following its 2018 report, location data company Factual has again commissioned Lawless Research to survey location data buyers, with the aim of uncovering trends in location data usage and diving deeper into specific use cases and applications. The company has launched its 2019 Location-Based Marketing Report, which includes the following findings:

  • Location data continues to be an effective tool for marketers
  • Quality remains the most important attribute of location data
  • The use of location data for promotions and ads will increase
  • Marketers are leveraging location data in emerging channels
  • Marketers are stuck with the Google, Facebook and Amazon advertising

Location data continues to increase campaign effectiveness, driving sales and customer engagement. The majority of marketers continue to leverage location data as an effective marketing tool, but since last year’s report, measurement of campaign effectiveness has evolved. Location data continues to be an effective tool for marketers — almost 90% of marketers said location-based advertising and marketing resulted in higher sales, followed by growth in their customer base (86%) and higher customer engagement (84%).

Quality remains the most important attribute of location data. In addition to accuracy and precision, privacy standards also rank high. Quality of data exceeds all other features: marketers rank it twice as important as the number two and three purchase criteria, ease of use (14%) and price (12%). When it comes to defining data quality, accuracy (32%), precision (18%), and privacy-safe methodology (13%) the top three important factors.

The use of location data for promotions and ads will increase to 94%, but only 24% use or plan to use location data for offline measurement. Some 84% of marketers currently use location data in their marketing and ad campaigns, and 94% plan to in the future. But with only 24% using location as a measurement tool, there is an 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 personalisation.

Marketers are using location data across new and emerging channels (connected speakers, digital out-of-home and advanced TV) and expect to increase their use across almost every channel in the next year. They understand that the path to purchase is complex, and consumers need to be reached across multiple channels. 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%).

Marketers are stuck with the Google, Facebook and Amazon advertising oligopoly. They want alternatives but the current landscape and regulation leaves them no choice. Although marketers are allocating a large amount of budget and seeing results, they’re not all happy about it. The majority of marketers still want alternatives to the advertising oligopoly to improve their advertising.

Nearly 66% of brand marketers and agencies are extremely, very or moderately concerned about the oligopoly limiting their advertising options. 65% are looking for alternatives to improve advertising outcomes, even though nearly half say the return on investment on ad placements with the oligopoly is higher than on other platforms. Companies with larger advertising budgets allocate a greater share to Google, Facebook and Amazon. Almost half (46%) of agencies and brands with advertising budgets of $50-million or more spend 60% or more on the oligopoly.

Contact Brian Czarny, Factual, brian@factual.com

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