As marketing strategies continue to evolve, mobile location data has emerged as a crucial resource for generating valuable insights that drive ROI. With its unparalleled ability to deliver targeted messages to the right audience, at the right place, and at the right time, human mobility data has become a game-changer for the advertising industry. We have also seen amazing results in using location data to measure the ROI of marketing campaigns. In this article, we elaborate on how location data can be applied to high-impact use cases in advertising, marketing, and related technology.
Producing reliable behavioral insights on consumers
Understanding consumer behavior is critical for launching effective marketing campaigns. Many businesses base their marketing strategy (e.g., targeting, audience segmentation, and messaging) on online behavioral data. Although cheaper and more accessible, these sources cannot offer holistic intelligence on offline customer behavior – which is far more powerful for brands. Consequently, firms that rely exclusively on online sources may launch ineffective marketing initiatives that do not achieve the desired ROI.
Historically, marketing leaders have relied on traditional data collection methods, like surveys and loyalty programs, to understand consumer behavior. However, these methods are not only costly but also provide limited information, making it challenging for decision-makers to comprehend real-world consumer behavior.
In contrast, high-quality mobile location data is a reliable source of information on offline consumer behavior that can be gathered at scale and at a relatively low cost. Since mobility data serves as a proxy for consumers’ movement patterns within the real world, analyzing it is an accurate means of determining buyers’ preferences and activities. These authentic behavioral insights, in turn, allow brands to create and deliver personalized and contextually relevant messages to target audiences, resulting in enhanced customer engagement and user growth.
Targeted marketing based on footfall and visitation
By leveraging location data, advertisers can identify areas with significant footfall and deliver relevant offers to users within those locations. This makes it possible for marketers to target customers who are close to physical outlets (shops, eateries, or other service locations), which can boost foot traffic and sales conversions.
The heatmap above shows the spread and concentration of visitors near Rockefeller Plaza in Manhattan. As we can see, two localities (Rockefeller Center itself and 415 Madison Avenue) have high footfall. Advertisers can serve targeted digital ads to the large number of prospects in these areas to increase in-store visits.
Generating competitive intelligence
Firms can set up virtual boundaries (geofences) around their own and competitor stores to compare foot traffic data. This information, when combined with third-party data (such as demographic and purchasing data), allows brands to discern market share, estimate competitor revenue, forecast sales cycles, and identify growth opportunities at scale.
Synchronizing online and offline advertising
Usually, offline and digital marketing initiatives are executed independently. However, mobile location data provides marketers with a unique opportunity to make these distinct advertising channels work synergistically, thereby paving the way for re-engaging and/or retargeting prospects at scale.
Moving Walls, a leading advertising technology company, utilizes their location intelligence platform – Moving Audiences - to achieve this. In Malaysia, they helped Foodpanda (a dominant food delivery service) segment consumers by cuisine preferences, based on visitation patterns to restaurants and other food outlets. Afterward, Foodpanda harnessed these reliable audience insights to push specialized offers (via mobile advertisements) to people who had encountered their Digital Out-of-Home (DOOH) ads. As a result, they were able to re-engage approximately 977,000 individuals – which represents 55% of the total exposure achieved during the campaign’s duration.
Assessing and expanding media holdings
Media inventory holders can determine the viability of their existing portfolio by measuring consumer foot traffic in areas where they already operate. Additionally, they can also study footfall trends to identify areas that would be ideal for assets that can yield higher returns.
Leveraging the power of location data, marketers gain in-depth insights into customer behavior and preferences, allowing them to optimize campaigns for maximum ROI. Additionally, footfall data enables advertisers to deliver personalized messages and synchronize advertising channels, ultimately driving engagement, boosting brand loyalty, and maximizing returns on marketing investments.
Want to leverage the power of location data to boost ROI on marketing spend and increase profitability? Contacts us and speak to a data consultant today!