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LBA vs. DMA: How Location Data Can Deliver More Value for Retail

The go-to connection between retail marketers and location data is simple, but could be more effective: Most stores will set up a geofenced ad campaign to drive in-store traffic in the immediate area during a given time.

It’s a reliable tactic for driving sales, but as we’ve found, retailers can gain even more value from location-based data by using it to find and target their ideal customers. It’s called Location-Based Audience (LBA) targeting, and when used effectively, LBA targeted campaigns have been shown to generate a 33% lift in intent to visit a specific store.

In a study with a leading office supply retailer, we stacked LBA targeting against the more commonly-used DMA targeting, and the results were telling:

  • LBA targeted campaigns were 10% more effective at reaching users with a retailer’s desired psychographic profile
  • LBA targeted campaigns drove a 33% lift in customer intent to purchase (vs. DMA targeted ads which drove no lift)
  • Successful LBA targeted campaigns were more cost-effective than their DMA targeted counterparts when it came to driving customer intent

Ultimately, location data helps to create rich user profiles -- built on demo and behavioral insights rather than relying purely on their location -- and those profiles allow retail marketers to understand who their audience really is (and then where to reach them).

Find out how LBA can drive in-store traffic and boost sales by getting in touch with us.

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