Harnessing the Power of Location: Fine-Tune Your Geo-Audience - Thinknear by Telenav | Location-based Mobile Advertising Solutions

Harnessing the Power of Location: Fine-Tune Your Geo-Audience

Harnessing the Power of Location

The idea of using mobile location data to target consumers based on their proximity to a location isn't new. Marketers widely agree that geofencing is an important tool for any mobile campaign.

But if geofencing is the only tool being used, marketers are missing other opportunities to leverage location data.

We wanted to highlight the importance of evolving your location targeting strategies, so we partnered with IPG Media Lab and Office Depot to compare traditional designated market area targeting (DMA) with enhanced location-based audience targeting (LBA). While traditional DMA targeting relies on geofencing tools to target all consumers within a certain designated area, LBA is a more granular approach that reaches specific relevant target audiences within that same area. For example, a marketer might want to focus on a geographic market, but LBA targeting uses location data to ensure that only a specific audience within that geography is targeted.

We’re proud to present the results of our quantitative media trial in the infographic “Harnessing the Power of Location.” Our study shows that LBA targeting works better to reach key audiences and influence consumers. LBA targeting:

  • Successfully reaches specific audiences within a given geographic area
  • Drives both intent to visit and actual visits to brick and mortar stores
  • Proves to be significantly more cost-effective for marketers

Our team partnered with Office Depot Inc. to run the in-market research. Using the behavioral and psychographic attributes of Office Depot customers, we created randomized test and control groups for our study. We then mapped those traits to location-based data sets to create custom Office Depot user profiles. To ensure objectivity, we engaged Placed, a third-party measurement firm, to track foot traffic for the study.

Here are some of the things we learned:

LBA targeting was better at reaching new potential customers, in particular, those who purchase office supplies at competitive stores. Consumers reached through LBA targeting were 10% more likely to fit into the brand’s key psychographic target.

LBA targeting was better at inspiring intent to visit. Generic DMA targeting had no measurable impact on the reaction of key customer segments, but customers reached by LBA targeting showed significant lift (+116%) in intent to visit. Location-aware ads nearly doubled the intent to visit, and using a location-aware creative combined with LBA targeting produced the very best results.

Unlike DMA, LBA targeting translated into actual foot traffic. LBA produced a 29% lift in store visits, much higher than the industry norm of only 3.1% lift in store visits.

LBA targeting was more cost effective, costing only $1.02 per incremental store visit as compared to $6.39 for the general industry benchmark.

The Thinknear + IPG Media Lab trial shows that LBA targeting based on consumer insights results in better performance and lower cost across key mobile metrics.

Because LBA targeting is so effective at reaching a specific audience within a geographic area, it typically outperforms traditional geofence or DMA targeting. LBA targeting proved highly effective at reaching a specific target audience and outperformed DMA targeting in terms of driving foot traffic. It significantly reduced the cost to convert customers, and proved useful as both a brick & mortar and as a brand advertising tool. In short, we found that LBA targeting has less waste, increases the efficiency of campaigns, and lowers the cost of incremental visits.

Take a look at the infographic:

ipg-lba-infographic_web

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