MARKETERS HAVE EMBRACED LOCATION TARGETING
In the world of location data, targeting is the low-hanging fruit. The marketer’s holy grail is to reach the right consumers at the right place and the right time. Location data checks all those boxes––and more.
That's why over 81% of marketers planned to use location data to target in 2017.
It is expected that location targeting tactics will make up nearly half of mobile ad spend by 2021.
WHAT IS LOCATION TARGETING?
Mobile location targeting allows us to precisely target the right people at the right time. But what does “mobile location targeting” mean, exactly?
There are two broad types of mobile location targeting:
- Audience Targeting: targeting ads based on data about where people have been.
- Geofencing: targeting ads based on data telling us where people are… right now.
Location data can be used to create different types of "geofences" –– or boundaries designating the targeted area. This allows marketers to reach consumers in real time, based on where they are located at that exact moment. The two most common geofencing approaches are:
- Point Radius Geofencing, in which you specify a desired radius around a specific point of interest (e.g., a business location).
- Polygon Geofencing, in which you specify multiple points (or “draw a polygon”) to define the perimeter of a geofence.
→ Click here to learn how Factual's Geopulse Proximity can help you reach mobile device users based on where they are in real time
Location data can be used for audience targeting in multiple ways. Here are three common approaches to using location data to identify the right people to target for a specific campaign:
- Identify people who have been to a specific place.
- Understand who people are, based on the places they visit over time (aka geoaudience profiling).
- Understand people’s behavioral patterns (aka geobehavioral ad targeting).
1) Target Visitors to Specific Places
Location data can be used to target ads to consumers who have visited specific places––such as businesses, chains, or points of interest. For example, marketers often wish to target their own brick-and-mortar locations to upsell or re-engage existing customers, or conquest competitors' customers by targeting competitors' locations. Similarly, brands may wish to target points-of-interest related to a particular campaign, such as dog parks when promoting a dog food brand.
2) Creating Audience Profiles
By analyzing device visitation rates to specific locations over time, we can gain insight into the type of person using the device. This allows us to create unique geoinformed audience profiles for ad targeting. For example, if we see that a single device has visited multiple airports and hotels during the work week, week after week, we can infer that this person is a “business traveler”. This is sometimes referred to as geoaudience profiling.
3) Understanding Real World Behavioral Patterns
We can also analyze device location data collected over time, in order to gain insight into where devices appear frequently and better understand consumers’ behavioral patterns. This can be used to change a habitual behavior by targeting ads to devices at specific times of day. For example, if you know that a user visits their local coffee shop at 8am every morning, you can serve them an ad at precisely the right time to encourage them to visit a different coffee shop. This is sometimes referred to as geobehavioral ad targeting.
→ Click here to learn how Factual's Geopulse Audience suite can help you target ads to groups of people based on how they behave in the real world.
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