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Reading: Location-Based Audience Targeting Better At Driving Foot Traffic: Study
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B&T > Advertising > Location-Based Audience Targeting Better At Driving Foot Traffic: Study
Advertising

Location-Based Audience Targeting Better At Driving Foot Traffic: Study

Staff Writers
Published on: 11th October 2016 at 11:22 AM
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IPG Media Lab has shared the results of a quantitative media trial, which examined how location-based audience targeting (LBA) in mobile compares with more traditional methods, such as designated market area targeting.

The creative tech arm of IPG Mediabrands produced the results via an infographic in partnership with Thinknear, a location-based marketing platform. Titled, ‘Harnessing the Power of Location’, itdetails how LBA targeting reaches more specific and relevant audiences, drives both intent and visits to brick and mortar stores, and is significantly more cost-effective for marketers.

The IPG Media Lab and Thinknear partnered with Office Depot Inc. to utilise mobile location data in identifying and targeting audiences based on behavioral location data. The resulting media trial findings indicated that foot traffic increased more than 29 per cent with LBA targeting based on a standard ad, and over 31 per cent when the LBA targeting was paired with a dynamic location-aware advertisement, as measured by Placed Attribution.

Among key audience segments, intent to visit the store increased more than 116 per cent using the LBA and location aware ad combination.

“Location data is transforming marketing practices across the mobile industry. The takeaways from this research show that data can be used in ways far beyond simple geo-fencing,” said Brett Kohn, VP of marketing & product at Thinknear.

“The use of location data has evolved to and our core focus area is helping marketers develop best practices in the application of that data to meet business goals.”

Key highlights include:

  • Consumers reached through LBA targeting were 10 per cent more likely to fit into the brand’s key psychographic target.
  • LBA targeting was more effective at reaching new potential customers – those who purchase office supplies at competitive stores.
  • Generic DMA targeting had no measureable impact on reaction by key customer segments. However, those reached through LBA targeting showed significant lift (+116 per cent) in intent to visit the store.
  • Location aware ads nearly doubled the impact in visitation intent. Using a location aware creative combined with LBA targeting led to the best result.
  • Only LBA targeting translated into actual foot traffic – a 29 per cent lift in store visits, which is much higher compared to the industry norm of only 3.1 per cent lift in store visits.
  • LBA targeting was also highly cost effective, with a $1.02 cost per incremental store visit compared to $6.39 for the general industry benchmark.

“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 and mortar businesses,” said Kara Manatt, SVP, 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.”

 

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Staff Writers
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Staff Writers represent B&T's team of award-winning reporters. Here, you'll find articles crafted with industry experience spanning over 50 years. Our team of specialists brings together a wealth of knowledge and a commitment to delivering insightful, topical, and breaking news. With a deep understanding of advertising and media, our Staff Writers are dedicated to providing industry-leading analysis and reporting, both shaping the conversation and setting the benchmark for excellence.

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