Location-based audience targeting using mobile data can boost foot traffic to brick and mortar stores by over 30 per cent, and increase intent to visit by more than 100 per cent among key audience segments.
According to a new study by IPG Media Lab, the creative technology arm of IPG Mediabrands, carried out in partnership with location platform Thinknear, utilising mobile behavioural location data to identify and target audiences can have a significant impact on both user experience and ROI.
A media trial found that using location-based audiences increased foot traffic by 29 per cent for standard ads and 31 per cent when paired with dynamic, location-aware ad content.
In addition, among key audience segments, intent to visit the store increased by 116 per cent when using the combination of location-based audience targeting and location-aware advertising.
"Location data is transforming marketing practices across the mobile industry," said Brett Kohn, vice president of marketing & product at Thinknear. "The takeaways from this research show that data can be used in ways far beyond simple geo-fencing. The use of location data has evolved too, and our core focus area is helping marketers develop best practices in the application of that data to meet business goals."
Among the other key findings the study reported were that consumers reached through location-based targeting were 10 per cent more likely to fit into a brand's key psychographic targets. Location-based targeting was also more effective at reaching new potential customers, and proved to be extremely cost-effective.
"It makes sense that the more we can refine our audience targeting to speak to the needs of individuals, not broad categories, the more positive impact we'll see for advertisers, including both digital and brick & mortar businesses," said Kara Manatt, senior vice president of intelligence solutions & strategy at IPG Media Lab.
"What's highly encouraging is that we're proving there are ways to both improve performance but to also do so at a much cheaper rate."