65% of ad budgets are wasted on low quality location data

Anne Freier

In Mobile Advertising. August 29, 2019

Location-based mobile marketing provides an opportunity to reach consumers locally, but new research shows that 65% of ad budgets are wasted on poor quality location data.

According to Location Sciences, location accuracy is a big issue for brands with 71% of impressions meeting desired targets. Missed impressions could be due to issues with campaign set-up or marketers choosing to turn off targeting.

Twenty-nine percent of impressions missed the target, wasting campaign dollars.

Location signal quality was poor for 36% of signals used in campaigns, which may point to suppliers unsure of IP signal approximation or advertisers opting for IP as opposed to GPS signals due to the lower cost. Yet GPS provides superior signal accuracy.

Over one third (36%) of impressions were not of high enough quality to meet targeting requirements.

“While some location data suppliers are doing an excellent job – in our analysis 40 per cent of suppliers showed nearly 100 per cent accuracy in location and 35 per cent near 100 per cent accuracy in signal quality – there is still a large percentage of suppliers who are significantly underperforming,” said Mark Slade, Location Sciences CEO. “For location to be used effectively in digital advertising, brands should ensure that they understand exactly what they have purchased and how this is being deployed. This will help drive significant improvements in accuracy and campaign performance.”

When transparency measures were added alongside quality location data, impression quality rose 40% compared to 10% when only transparency measures were added.

Location Sciences analysed 16,000 apps and found that 36% of them showed varying degrees of fraud, 17% of which posed a severe or high risk.