Location-based mobile ads are expected to increase to $38.7 billion in spending in 2022 up from $17.1 billion in 2017 (US only). Now, new research by Factual, the location data company, has highlighted why marketers consider location ads to be more effective.
The majority of marketers surveyed are now using location data as part of their mobile ad campaigns and it seems to be working by achieving growth of a brand’s customer base (85%), higher response rates and customer engagement (83%).
Additionally, location data increased response rates, provided a deeper knowledge of consumer needs and improved ROI as well as campaign lift.
91% of marketers also said that location data boosted their understanding of their audiences and created a positive customer experience (87%). Around two-thirds of marketers now use location data to target ads and promos.
However, advertisers are becoming more concerned about the Google-Facebook duopoly (92%). When it comes to using Facebook and Google for advertising, 38% are worried about false impressions, 36% worry over transparency and 36% over pricing.
This has led to 71% of marketers actively seeking alternatives to the duopoly for online and mobile ads.
The survey further highlighted that 95% of location data buyers consider data transparency to indicate data quality more accurately.
However, customisation of ads is still a key component to ensure a smooth user experience. Around 8 in 10 marketers said they were using location-based data to personalise the customer experience, whilst 85% plan to do so in the coming 12 months.