How Marketers Use Location Data April 20 th, 2017
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Presenters VASSILIS BAKOPOULOUS Head of Industry Research at Mobile Marketing Association JEANETTE JORDAN Director of Product Marketing at Factual 4
Snapshot of the Sample Profiles Sample covers a mix of marketer sectors as well as agencies Retail CPG Tech / Internet Financial 7% 11% 22% 25% 2/3 of marketers have a physical location QSR Travel & Hospitality Automotive 2% 2% 2% Other 5% Agencies 25% 5
Six Key Findings of Location Data Study 1. Path to Mobile Maturity is Through Investment 2. Location Data is at the Core of Mobile 3. Marketers Go Beyond Targeting and Into Measurement 4. Still Some Key Concerns 5. Marketers & Agencies Differ in Use 6
1. Path to Mobile Maturity is Through Investment 7
Spend is correlated with experience Mobile Mature Mobile Strategic 38% 38% Mobile Test & Learn 25% 17% 20% 19% 3% 2% 5% 45% 30% 14% 62% Nearly 70% of Mobile of marketers Mature believe marketers mobile are is spending critical for at the least 13% future of budgets of their company. in mobile. 23% 10% Up to 3% 4%-7% 8%-12% 13%-20% More than 20% Percentage of Total Spend 8
Those Big Budgets Drive Confidence in Mobile 52% 42% 35% Big Spenders ( 13%) Medium Spenders (8%-12%) Small Spenders (<8%) % of respondents, based on spending level, who think their company is doing a great job leveraging mobile advertising 9
2. Location Data is at the Core of Mobile 10
Agencies Marketers Majority of Marketers AND Agencies Use Location Data More Than 40% of the Time 26% 29% 37% 36% Using location data for targeting is extremely important for 61% of marketers 18% 10% 13% 13% 9% 9% Under 20% 20% - 40% 40% - 60% 60% - 80% Share of location based targeting in overall mobile advertising strategy 80% - 100% 11
Social and Search Top the Format Strategy List Key Tactics that Leverage Location Data Social 58% 66% Search 41% 51% Display / Rich Media Video 35% 36% 40% 42% Custom Content from Publishers 26% 38% Marketers Agencies 12
Social is Inherently Mobile Social is inherently mobile, and if you re spending in social, 70% of that experience takes place on a mobile device. - Liboon, RPA 13 Factual - Oct 2016
This fe out Head Real-Time Targeting Is Highly Valued 14
Location Can Improve Brand Equity & User Experience Marketers with physical location are more focused on driving people to their stores (52% vs. 27%) Extremely Important Marketers think that location benefits both the upper funnel but also customer experience. Agencies also see a benefit in terms of driving sales. Build awareness and brand equity of my products and services 58 Engage consumers with relevant content at the right moment 53 Generate new leads 57 Drive people to a store 43 Drive purchases (direct response) 46 Increase loyalty and retention 58 Improve customer experience & service 57 48 47 41 41 39 41 36 37 41 50 44 45 50 41 Marketers Agencies 15
3. Marketers Go Beyond Targeting and Into Measurement 16
Insights, Measurement & Attribution Use Cases Location data is primarily seen as a way to improve targeting and audience understanding Majority of marketers, more than agencies, claim to use location data in multiple ways % say it s extremely important % say they have used in last 12 months Enhance Enhance understanding understanding of customers of customers 59% 54% Enhance Enhance understanding understanding of customers of customers 54% 61% Attribution and understanding path to path purchase to purchase 55% 52% Attribution and understanding path to path purchase to purchase 43% 53% Measurement measurement for advertising for effectiveness 51% 49% Measurement measurement for advertising for effectiveness 57% 52% Marketers Agencies 17
CTR Still The Preferred Metric for Marketers Question: How often do you use each of the following when evaluating performance of mobile campaigns? 54% Marketers with a physical location are more likely to use PVR 40% 41% 38% 38% 37% 38% 37% 25% 27% 41% 35% 34% 34% 33% 31% 32% 32% 32% 31% 29% 28% 23% 24% CTR CPV CPS CPC PPA CPI CPA CPL PPC CPM PVR SAR Marketers - Always Use Agencies - Always Use 18
But Foot Traffic Fuels Confidence and Greater Spend 78% reported an increase in location-based mobile spend with the availability of foot traffic measurement. 16% 16% 21% 27% 25% 13% 20% 14% Marketers Agencies 10% 8% 8% 1% 1% 0% 3% 4% 4% 2% 2% 5% 1 2 3 4 5 6 7 8 9 10 19
4. Still Some Key Concerns 20
Quality and Transparency Top Concern for Both Concerns regarding quality of data 34% 40% Lack of understandable differentiation among providers 22% 39% Lack of transparency into data sources and methodologies 31% 38% Lack of established standards, metrices & guidelines Lack of scale 22% 24% 34% 36% Don't know how to apply it for my own brand 28% 32% Marketers Agencies 21
Marketers & Agencies Consider Multiple Factors When Buying Location Data Reach Effectiveness in driving KPIs Data quality (freshness & accuracy) Transparency into data source and methodology Ability to buy data bundled with media 50% 52% 49% 48% 47% 44% 45% 39% 41% 58% Ability to buy data independent of media Price transparency 38% 37% 44% 45% Marketers Agencies *This is a sample list visit the whitepaper for the full list 22
5. Marketers and Agencies Differ in Use of Location Data 23
Marketers are more likely to trust the data and the results for mobile vs agencies Our analysis is based on reliable data when it comes to mobile We trust the results we get regarding mobile advertising effectiveness Agree Completely 37 49 Agree Completely 36 44 26 32 29 27 12 14 11 22 8 11 10 11 Disagree completely 4 3 Disagree completely 6 4 Marketers Agencies 24
Marketers Willing to Sacrifice Precision for Reach While Agencies are More Conservative Marketers Agencies Marketers Agencies Marketers Agencies I am willing to sacrifice some precision in exchange for reach I am willing to sacrifice some reach in exchange for more precision I have a minimum reach and minimum precision requirement 51 43 39 41 6 10 I don't have a point of view 4 6 I am in favor of look-alike models 71 59 I don't trust lookalike models 19 32 I don't have a point of view 11 9 I am open to using both types, depending on the situation 39 35 I prefer deterministic audience segments 38 31 I prefer probabilistic audience segments 19 28 I don't have a point of view 4 6 25
Summary of findings 1. Location data is seen as a key component of mobile advertising, especially by mobile mature marketers 2. In practice, most marketers claim to use location data, particularly in relation to social and search. About half marketers use location for more than half of their mobile ads 3. Although targeting is still the key application, marketers use location data for insights, measurement and attribution 4. Marketers are more convinced about the value of location in driving brand equity and customer experience (vs leads and sales) 5. Real time LBA, Proximity targeting and location enhanced creative are the key applications, seen as more valuable 6. Marketers are willing to sacrifice some precision in exchange for reach. Agencies are more divided. 7. Marketers have confidence in foot traffic data which is fueling additional spend in location based advertising 8. There are some concerns about data quality, transparency and lack of understandable differentiation among providers 9. Data quality and reach are key factors when buying location data 26
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