Stores That Use Location-Powered Ads See 74 Percent Lift In Foot Traffic…
... But that's not necessarily enough to spur the wider use of proximity marketing, says Mindshare.
“We look at beacons as a complementary tactic in an overall marketing program. Instead of going to market and saying ‘let’s do a beacon program,’ we look to connect with our target audience in ways that will drive purchase,” says Mindshare’s Jeff Malmad.
Among the main points (from Verve Mobile):
- Retailers using location saw a 74 percent lift in traffic and 56 percent gain in visit frequency
- 35 percent of mobile consumers make purchases on their smartphone, while 32 percent change their minds about a making an in-store purchase while doing research on a product
- 94 percent look for local information on their smartphone, while 90 percent of those people take an action as a result of what they find. 66 percent visit the business either online or offline after conducting a local search.
As for the battle of “mobile web vs. mobile apps” — aka “Google vs. Apple” — the breakdown of usage is fairly equal: 37 percent favor apps, 30 percent like the mobile browser best, and 33 percent don’t have a preference, according to Juice Mobile.
Even with all the stats heading in the positive direction, the location ad marketplace is still fairly nascent. To put things in context in the case of beacons and proximity marketing, there are 4 million Bluetooth-powered devices currently installed in stores and venues around the globe, according to Unacast’s Q4 Proxbook, citing estimates by ABI Research. That same Proxbook reports that real growth is still farther away, as it projects that there will be 400 million beacons in place within the next four years — things are just getting started.
For advertisers, the view of beacons is also still forming, says Jeff Malmad, Managing Director, Head of Mobile and Life+, Mindshare NA.
“We look at beacons as a complementary tactic in an overall marketing program. Instead of going to market and saying ‘let’s do a beacon program,’ we look to connect with our target audience in ways that will drive purchase, leveraging all the tools at our disposal,” Malmad tells GeoMarketing. “It’s not about one-size-fits-all in location; it’s an art that needs sculpting.”
Asked about the apparent effectiveness of location-based marketing’s impact on store lift and return visits mentioned in Verve’s stats above, Malmad acknowledges the “mix of challenges for retailers, from knowledge to assets to understanding how to leverage the technology in a way that they can actually measure.”
Overall, the industry is doing a good job developing capabilities to deploy, it’s just about getting more scale adoption, he adds.
Given all that, should — can? — location data be used as factor not only in serving ads, but in crafting the messaging and creative assets as well? Not surprisingly, Malmad’s answer is “yes.”
“We live in an adaptive world, where in essence the smartphone has turned us all into real world versions of web traffic,” Malmad says. “Based on our real world geo-patterns, the creative we are delivered should be adaptive based on our real life past locations.”