IPG Media Lab, the creative technology arm of IPG Mediabrands, in partnership with Thinknear, a leading location-based marketing platform, today announced the results of a quantitative media trial examining how location based audience targeting (LBA) compares versus more traditional methods such as designated market area targeting (DMA) in mobile. The resulting infographic, Harnessing the Power of Location, details how LBA targeting reaches more specific and relevant audiences, drives both intent and actual visits to visit brick and mortar stores, and is significantly more cost-effective for marketers.
The IPG Media Lab and Thinknear partnered with Office Depot Inc. to utilize mobile location data in identifying and targeting audiences based on behavioral location data. Better ad targeting typically means improved user experiences and higher return on investment (ROI) for advertisers. The resulting media trial findings indicated that foot traffic increased +29% with LBA targeting with a standard ad, and +31% 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 +116% 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% 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%) 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% lift in store visits, which is much higher compared to the industry norm of only 3.1% 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.”
The scientific design included randomized control groups for each targeting method. The IPG Media Lab partnered with Placed, the market share leader in ad to in-store attribution representing the world’s largest opt-in location audience, to measure both brand impact as well as foot traffic. Based on passively and persistently measured data – locations consumers have visited or passed by – Placed is able to directly measure and understand foot traffic and lift as well as target surveys to capture brand metrics to Office Depot Inc. stores.
Source: IPG Media