Why you need to combine location data with demographics and behaviour

By , 10 June 2015 at 17:00
Why you need to combine location data with demographics and behaviour
Insights

Why you need to combine location data with demographics and behaviour

By , 10 June 2015 at 17:00

Nowadays, no one doubts how the location has increasingly become a useful tool to serve people. Lately, it has become clear how location is a very powerful tool on every level.

After the terrible catastrophe in Nepal, Google and Facebook have both created tools to locate people affected by the earthquake. Also, they are investing in long-term projects to prevent robberies and murders.

As an example of this, the Crime Hot Spots project has helped predict future crime scenes with 70% of accuracy. To do this, data generated by mobile users via the provider O2 in central London was used. It’s important to mention that this data was treated as aggregated and anonymized, allowing the team to collect statistics about user information such as gender, age, and location in real time.

Adding to the data crime statistics and demographic info, an algorithm was prepared that would be capable of predicting crime rates of a subsequent period of the same duration.

Geolocation has become quite the star of mobile marketing to advertisers and agencies alike

This invaluable tool not only helps citizens go about their daily lives with efficiency, but also carries huge value for us as consumers. Agencies are increasingly investing in tools that pinpoint the exact location of a customer, allowing them to tailor their advertising to the context and singularities of each person, thereby boosting engagement.

According to Borrell Associates, the investment in mobile location-based marketing will reach 4,000 billion US dollars in 2015 and according to MMA, campaigns that are sent using this technology have a CTR (click through rate) average higher than those who do not use location!

Geolocalización para encontrar a tus amigos

In the UK, mobile advertising agency Weve use location data to send personalized marketing campaigns and moreover, to use the historical location of users versus solely in real time. This allows them to create customer segments based on criteria such as where someone lives, their current location, where they are headed, or where they have purchased things before.

Let’s look at some real examples of this in action, shall we?

For example, there is a segment called “uni students” which was created taking into account the 18-24 year old population located in different campuses within the segment ‘Life, Home and Family.’ On the other hand, the “music fan” in the ‘Entertainment’ segment is identified by geo-festivals, or the “bargain hunters” grouped by the time they previously downloaded coupons or responded to offers sent.

The next goal is to extend this “historical location” technology to all markets including LatAm, where mobile location campaigns are getting great results in countries where it already is using this technology.

An example of this tech being used in LatAm is a recent campaign carried out by Movistar Colombia for a famous local ice cream brand. Users who had a history of being present near the stores selling ice cream were targeted. An additional trigger was added to the campaign, allowing messages to be sent only when a certain temperature was reached!

The campaign was a great success which helped prove the strength of combining location data with demographics and behaviour.

Viajes y Geolocalización

Today we have a raft of possibilities to create a precisely targeted and engaging advertising experience for the mobile user.

In summary, for me the benefits of geolocation can be summed up thus…

1. To send campaigns to customers according to their requirements.
2. To send advertising at the right time where the customer can perform and purchase.
3. Maximize the use of investment. It’s a win-win for everyone, plus the customer receives information and attractive promotions according to their exact tastes and preferences.

previous article

Why I’m happy NOT to be an entrepreneur

Why I’m happy NOT to be an entrepreneur
next article

Mobile content: Better on the big screen

Mobile content: Better on the big screen