94% of Marketers Plan to Use Location Data to Improve Accuracy and Results
June 26, 2019 | Contributed by: Courtney Dobson
Data has become arguably the most important component of marketing strategies. It has allowed for marketers to create and test personalized, meaningful messaging and deliver it to their target audiences at the exact right moment. Additionally, marketers can use data tools to measure the impact of such advertising and easily adapt it to continuously drive sales and engagement.
This form of accuracy is unparalleled and allows companies to make the most of their marketing dollars by reaching those who matter most. So, it’s no question why a recent study from Factual revealed that 84% of marketers currently use location data in their marketing and advertising campaigns, and nearly all (94%) plan to in the future.
The report, “2019 Location-Based Marketing,” surveyed 700 U.S. mobile marketers from a mixture of brands and agencies. It provides various insights into their usage of location data, as well as the advantages and opportunities associated with it.
According to the data, there are several advantages linked to utilizing location data within marketing plans, the number one being increased sales (89%). Additional benefits include growth in customer base (86%), higher customer engagement (84%), deeper knowledge of customer’s needs and interests (83%) and higher response rates (78%).
When it comes to what’s most important in terms of location data features, quality of data reigns supreme (31%). The survey showed that it’s twice as important as the next highest features, ease of use (14%) and price (12%).
So how exactly are marketers utilizing the location data that they purchase? The data revealed that targeting is the primary usage. Offline measurement and attribution sits at the bottom, providing a large opportunity for marketers to take advantage of in the future.
Naturally, the majority of location data is being leveraged via mobile (81%). However, other channels are beginning to gain steam, including advanced tv (49%), DOOH (47%), voice/connected speakers (45%) and automotive (29%). Usage on all 4 channels is expected increase over the next year.
Marketers are currently allocating an average of 43% of their budget to Google, Facebook and Amazon. While this is where they typically see the biggest results, they are apprehensive to put their entire budget into the same 3 buckets, and 65% admit that they are searching for alternate options to improve their advertising outcomes. This is interesting, as nearly half (49%) admitted that their ROI is, in fact, higher on these channels than other platforms.
Total U.S. mobile targeted ad spending is projected to reach over $31 billion next year. As marketers continue to reap the benefits of location data, and uncover more and more ways to utilize it, it’s likely that this number will only continue to rise.
Location intelligence will be a central topic at our upcoming Place Conference in Austin, Texas in October. Experts from around the industry will take a broader look at the customer experience challenges and cross-channel opportunities facing today’s brands, retailers and agencies. To learn more, visit https://www.localogy.com/place/.