How Location Data is Powering Modern Audience Building

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The advertising industry has seen a major shift towards hyper-targeted audiences, and a crucial component of it all is location data. This type of data, sourced primarily from mobile apps, provides advertisers with the ability to target users based on their physical movements in the real world. Whether it's measuring visits to a particular store or identifying patterns of behavior over time, device-level data has become essential in building highly targeted audiences.

What is Device-Level Location Data?

Device-level data refers to the granular data collected from mobile devices, typically through apps that users have downloaded and given permission to track their location. These apps, like weather or fitness apps, collect data on a user’s location, and in many cases, that data is shared with third-party providers or sold directly to companies like Unacast.

This data is made anonymous by assigning Mobile Ad IDs (MAIDs), which allow advertisers to track a device without directly identifying the user. MAIDs can tell advertisers that a certain device visited a Starbucks on multiple occasions over a set time period, making it easier to build targeted audiences based on real-world behaviors.

The Challenges of Device-Level Data

While device-level data offers immense potential, it also comes with challenges. A major issue is data quality. Not all data is created equal—third-party aggregators may resell outdated or low-quality data, a practice known as "replay." Replay occurs when old data is given a new timestamp, making it appear as though it's fresh. Unacast has found that up to 50% of some U.S. data and 80% of some international data suffers from replay issues.

Another challenge comes from the increasing complexity of managing multiple data sources. Some aggregators mix data from different sources, reducing its accuracy and making it harder for advertisers to get a true picture of consumer movements. This is why companies like Unacast implement rigorous filtering processes to eliminate duplicates and clean the data before it’s passed on to advertisers.

Best Practices for Using Device-Level Data in Advertising

To make the most of device-level data, advertisers need to focus on both quantity and quality. It’s tempting to prioritize scale—getting as much data as possible—but that can lead to wasted ad spend if the data is flawed or out of date. A better approach is to use trusted sources and implement filtering systems that ensure data accuracy.

For example, Unacast processes over 8 quadrillion data points each month to eliminate duplicates and reduce misconfigured records. This ensures that advertisers are working with clean, reliable data that drives real results.

If you’re looking to improve audience targeting and measurement using device-level data, make sure you’re relying on high-quality sources. To learn more about how Unacast ensures data quality, download our full report, The State of Location Data and Its Impact on Advertising.

Frequently Asked Questions

Discover how analyzing real-world movement patterns can reveal valuable trends in customer behavior, optimize business operations, and enhance strategic decision-making.

What is site selection and why is it important?

Site selection is the strategic process by which businesses identify, evaluate, and choose optimal locations for their operations. This process is paramount as the location of a business directly influences factors such as accessibility, visibility, profitability, and market longevity. For retailers, the right site can mean higher customer footfall and increased sales. In real estate, a well-selected site can promise lucrative returns on investment and tenant stability. Financial service firms leverage site selection to position their branches or ATMs in high-demand areas. Essentially, site selection plays a pivotal role in ensuring the success and growth of a business by aligning its physical presence with market opportunities and demands.

How does location intelligence enhance site selection?

Location intelligence refers to the harnessing of geospatial data to derive actionable insights, which can significantly enhance the site selection process. By analyzing data like consumer demographics, foot traffic patterns, competitor locations, trade area data, and more, businesses can make more informed decisions about where to establish or expand their operations. Location intelligence allows for a deeper understanding of market dynamics, revealing hidden opportunities or potential pitfalls. For instance, retailers can identify gaps in the market, real estate professionals can forecast property value trends, and financial service providers can assess areas with high customer demand. Advanced tools, like those offered by Unacast, further refine these insights by leveraging AI and machine learning, enabling more precise and timely decision-making.

What challenges do businesses face in the site selection process?

Unacast provides invaluable support to businesses during the site selection process through its advanced location data and analytics software, all powered and refined by Artificial Intelligence and Machine Learning technologies. The company offers a suite of products designed to deliver accurate, actionable, and comprehensive location intelligence. This data proves crucial for businesses looking to understand consumer behavior, analyze traffic patterns, evaluate competitor locations, and much more. With Unacast’s robust tools, businesses in retail, real estate, and financial services can derive insightful information necessary for making strategic, informed site selection decisions. The platform not only provides reliable data but also ensures it is readily actionable for businesses, whether they are looking to open a new store, invest in property, or expand their financial services to new locations.

What types of location data are crucial for informed site selection?

Demographic data offers insights into the age, income, and lifestyle of people in a particular area, helping businesses understand their potential customer base. Foot traffic data provides information on the number of people visiting a location, which is crucial for retailers to estimate the store's potential popularity and for real estate professionals to assess an area's vibrancy and demand. Geographic Information System (GIS) data helps in visualizing and analyzing geographical details, supporting companies in identifying accessible and strategically located sites. Understanding the proximity to competitors, accessibility, and the socio-economic profile of the surrounding areas is also vital. Unacast’s platform aggregates and analyzes these various data types, providing a holistic view that significantly empowers businesses in their site selection endeavors.

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