Marketers Are Swarming Over Location Data

Not only are marketers using consumer location data like never before — they’re use of it is evolving at the same time.

A staggering 98% of marketers say they are now working with location data in some way, according to a new study by 451 Research on behalf of marketing support firm Cuebiq. Moreover, the Opens a new window Finding Real Enterprise Value in Location DataOpens a new window report revealed that the sector is avidly exploring new uses for this data.

Traditionally, location-driven strategies generally have been focused on mobile-push marketing and advertising. Now, though, marketers are exploring far more sophisticated use cases for related technologies beyond geo-targeted advertising.

The report finds that, “Instead of trying to reach consumers at the moment when they cross a threshold into an advertiser’s location, modern campaigns focus on re-engaging infrequent visitors, finding new customers to win market share, or rewarding loyal ones.”

The means for these connections: leveraging location data for attribution, audience insights and analytics in order to build a more in-depth understanding of their customers. There’s a particular interest in determining if people actually visit retail stores after receiving marketing communications, and whether individuals’ past consumption behavior can be used to predict their preferences and future actions.

Unraveling this issue requires assembling location data with the other consumer data that marketers have at their disposal, which tends to present a major challenge.

The real value of this exercise is that location data is extremely powerful and can yield more accurate consumer insights even than online data. Greg Sterling,Opens a new window  Vice President of Market Insights at Uberall, argues that it could even evolve into a replacement for cookies.

Challenges abound

As promising as it sounds in theory, the 451 Research report warns that plenty of operational issues stand in the way of a full-on location data revolution, especially getting and actually using the relevant information.

“Concerns about data accuracy, walled gardens, and the fragmentation of data inventory hold marketers back from achieving loftier location-based ambitions,” writes Joseph Zappa, managing editor of Street FightOpens a new window , a site that covers location-based media and commerce.

He points to the fact that 53% of marketers said they aren’t convinced of location data’s accuracy, while 45% agreed that integrating data from various siloed sources isn’t easy.

Meanwhile, the report found that more than three out of five large organizations had major concerns in regard to privacy. Couple this with the data quality issues and you’ve got a significant problem. It’s been shown that poor privacy standards can negatively affect the availability of high-quality location data down the line.

Then there’s the internal challenges cited by survey respondents. Many said they suffer from a lack of enough investment in the required technologies to make effective location data gathering possible. Budget limitations and an absence of executive buy-in are very real speed bumps to overcome.

Another common struggle is dealing with colleagues who are not as informed. Internal disputes regarding resource allocation are common and the need repeatedly to convince colleagues of the evolving technology’s efficacy isn’t easy.

Why marketers should care

“Location and real-world behavioral data yields insights into audience identity, brand affinities and purchase intent, among other benefits,” insists Sterling. This is actionable information of the highest quality. Figuring out how to leverage this data can change your world.

So I advise marketers to bring the C-suite on board, recognising the value of breaking down silos among data source and driving internal campaigns that will prove to decision-makers, as Zappa explains, that location data is “a holistic resource that boosts overall audience understanding instead of an isolated data point indicating where a customer was at a given time and allowing for proximity-based messaging.”