The secret to an engaging marketing campaign in 2019? Similar to the winning rule of real estate: location, location, location! Consumers are used to Uber pick-ups right where they’re standing. They browse Yelp reviews for the tastiest bites in their immediate vicinity and find the nearest open parking spots via the Parkopedia app.
So consumers expect brands to deliver the same level of localized relevance in their messaging.
That’s why digital marketers continue to pump marketing budgets into the segment: Location-targeted ad spend will generate $26.5 billion in the U.S. this year, with $38.7 billion projected for 2022. Brands are also trying to capture all the location data they can. Among leading retail marketers in the UK, 36 percent named ‘building accurate location-based audiences’ as the key benefit of location data, while 28 percent named precise footfall tracking.
Beyond these insights, location data makes for fun engagement right on the spot. Just think of the 100 million players engaged in the AR-enhanced Easter egg hunt that is Pokémon Go! Selligent Marketing Cloud client and grocery retailer ASDA similarly landed a viral hit with a location-driven campaign for its ‘Giant Hen’ Easter marketing campaign.
Without further ado, here are three reasons why we’re excited to be talking about location-based marketing:
- Location data has gone from cutting edge to fully mainstream. GPS background data (from always-on location signals) is used by 70 percent of marketers for location based-marketing, while 58 percent rely on Wi-Fi. Over 30 percent of Google searches involve location, while social media platforms and a wide array of apps also capture customer location. As a result, location data is widely available (if you have secured opt-in, that is).
- Location data works. The numbers are in and 53 percent of location data buyers attribute higher conversion rates and increased sales to location-targeted ads. Plus, consumers are nonchalant about their location data: Asked what kind of personal data they would like erased in a GDPR request, 61 percent of Western European consumers named personal identifiers such as passport numbers, but only 9 percent named location history.
- Customers demand localized relevance. While marketers spent the past few years struggling to deliver personalization, the focus is shifting to location-specific relevance. Why? Because today’s entitled consumers demand it! Consumers want personalized offers and live mobile content tailored towards their current situation and 42 percent would use an app more if it featured location-specific personalization.
Delivering on this promise will require marketing platforms that combine actionable personal data and full omnichannel capabilities to reach consumers on the right channel wherever they may roam.
For brands centered around convenience for wandering consumers, and Selligent client and leading US provider of self-storage products, Extra Space Storage uses our contextual marketing capabilities to deliver location-based relevance to customers via SMS and email. On moving day, customers receive messages with up-to-the-moment weather reports, plus real-time maps pointing out the nearest Extra Space location. Email-attributed conversion rates have also moved – up 50 percent! Find out more by downloading the case study below.