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

Location-Based Audience Targeting Better At Driving Foot Traffic: Study
B&T Magazine
By B&T Magazine
SHARE
THIS



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.”

 

Please login with linkedin to comment

ipg media lab sponsorship thinknear

Latest News

AnalogFolk Hires Senior Creative Content Specialist Naomi Martin
  • Advertising

AnalogFolk Hires Senior Creative Content Specialist Naomi Martin

Global independent creative agency AnalogFolk has added more creative content firepower to its Sydney team with the appointment of award-winning Naomi Martin as senior copywriter and social lead. Martin’s focus will be further building the agency’s creative and strategic capabilities across editorial, branded content, influencers, creation and production. Formerly head of content at IPG Mediabrand’s […]

Apple Set To Bundle Subscription Services
  • Technology

Apple Set To Bundle Subscription Services

Apple unveils latest initiative that is rumoured to have come to Tim Cook while he was scooping the leaves in his pool.

Recommended

by B&T Magazine

B&T Magazine
SkyBus Welcomes Back NZ Travellers With New Campaign Via Hardhat
  • Campaigns

SkyBus Welcomes Back NZ Travellers With New Campaign Via Hardhat

SkyBus’ latest ‘The Easy Way to Getaway’ campaign via newly awarded creative agency Hardhat aims to give a warm welcome to returning New Zealand travellers, letting them know the airport transfer service is ready and waiting. The win has seen Hardhat lead the charge on SkyBus’ strategy and creative across New Zealand, ensuring confidence in […]

Recommended

by B&T Magazine

B&T Magazine
Woolworths W23 Longtail UX. From left Will Santow, Longtail UX Co-Founder and Co-CEO; Ingrid Maes, Managing Director W23 and Andreas Dzumla, Longtail UX Co-Founder and Co-CEO. Pictured at Dan Murphys in Mosman. 13th August 2020. Photograph Dallas Kilponen.
  • Technology

Longtail UX Secures $2.25M In Funding From Woolworths Group’s Venture Capital Arm W23

Longtail UX, an Australian founded tech company with 70+ clients across the Americas, EMEA and JAPAC, has today announced a $2.25m supplementary equity raise in partnership with Woolworths Group’s venture capital arm, W23 and Steven Lew-owned group, Global Retail Brands (GRB). The investment builds on the $3m funding round led by Investec through its Investec […]

Enero Posts Net Revenue Increase Of 4.9%
  • Media

Enero Posts Net Revenue Increase Of 4.9%

Forget 2020's plagues, pestilence and famine says Enero, as balance sheet comes out with sweet smell of potpourri.

Recommended

by B&T Magazine

B&T Magazine