Three Business Advantages of Using Location Data to Improve Digital Advertising

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There are many reasons why location data is powerful for improving digital advertising.

Location data tracks where people go and what events they attend. Each location a consumer visits and event they attend provides valuable information about what that person is interested in – and what they may purchase next. Businesses can use this data to effectively learn about and target advertisements to the consumers most interested in their products or services.

Companies in a wide range of industries, such as retail, automotive, commercial real estate, travel and entertainment, and hospitality, are using location data to improve the outcomes of their advertising investments.

Three Ways Location Data Improves Digital Advertising

Location data helps digital advertising achieve better results in a number of ways, all leading to improvements in key metrics such as ROI or new customer acquisition. Here are the top three that we’ve seen work across industries and ads.

1. Location Targeting Enables Efficient Ad Targeting

Targeting is one of the most common and easily implemented uses for location data. With location data, companies can purchase what are known as ‘advertising audiences’ that have specific characteristics. For example, a health food store could purchase an advertising audience composed of people who have visited health food stores in the past six months, and send highly-relevant advertisements to a group of people they know are interested in healthy food.

That same health food store could also use an advertising audience of people who visited gyms, since we’ve used location intelligence to learn that people who visit gyms are also often interested in a healthy diet. By using an audience with complementary interests, the health food store could target a new audience and acquire new customers.

2. Location Data Helps Generate Higher Click-Through-Rate (CTR) and ROI

Using location intelligence, companies can learn more about customer interests, activities, and habits, which can then help create detailed personas for sales, marketing, and customer service. When used with a customer relationship management (CRM) system, those personas help each team provide highly relevant communications to customers and prospects.

Using accurate personas to improve communications throughout the customer lifecycle creates a better customer experience and can greatly improve your business results. Advertisements and offers that are highly relevant gain better results, improving the CTR and the ROI of campaigns. We’ve seen companies achieve a 250 percent increase in CTR for marketing campaigns just by leveraging location intelligence to target relevant audiences and provide more personalized offers.

3. Location Data Powers Foot Traffic and Purchase Attribution

Because location intelligence is based on real-world actions, it can help businesses connect online activities to offline behaviors. That means companies can use location intelligence to connect mobile advertisements to offline foot traffic in stores, restaurants, and other commercial venues.

By connecting changes in your foot traffic data to mobile advertising campaigns, you can understand which advertisements work and which ones don’t, giving you the insight to make better decisions and increase your ROI in the future.

Location Data Helps Businesses Spend Ad Money More Effectively

Location data excels at helping businesses better align their messages to buyers’ interests, create more effective ads and offers, and deliver those ads to the right consumers. As a result, businesses are able to spend their ad dollars in more productive, impactful ways that generate more sales leads and higher investment returns.


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