Mobile campaigns which incorporate geo-fencing and geo-aware marketing are increasing in number according to two recent studies by Verve Mobile held in 2013 and 2014 covering trends in location-based marketing. Reports provide metrics and findings following an examination of 2500 campaigns and deliver some valuable insights about the way that geo-fenced and geo-aware strategies are encompassed into various mobile campaigns deployed by marketers.
In Geo-fencing strategies, marketers target users who are based in a certain geographic region or a location of interest. This could be a physical store, or a larger region of greater radius, depending on the objectives of the campaign. Users located outside of the defined geo-fenced area are not receiving the promotion/message as they are outside the location parameters. Geo-fencing strategy can be very useful, particularly for retailers who wish to drive foot traffic in physical stores.
Geo-aware strategies use real-time location data to deliver relevant content to users based on their distance from the nearest retail location or proximity to a particular location.
According to the 2014 report, the most popular industry to use geo-fenced and geo-aware strategies is the retail sector with a total of 28% percentage to all categories-industries that leverage location-based services for their advertising.
Another key finding of the reports is that the first two marketing objectives behind a selected location-based campaign by marketers is first, to drive foot traffic and second to launch special promotions in certain periods or sales.
The reports also note that overall, the campaigns that used location-based marketing outperformed twice in effectiveness and click-through rate those which did not include location-targeting.
In conclusion, the results from the studies emphasize on the rapid growth, diversity and effectiveness of location-based mobile advertising campaigns. Overall, location-powered tactics effectively reach targeted audiences and the drive foot traffic where desired, as well as result in high engagement with relevant, informative, entertaining content/advertising. Branding, consumer path insights, and attribution are all effectively driven and enhanced by campaigning with location data as its foundation. Moreover, the addition of location information in mobile marketing brings real value to users by helping them find products and services where and when it is convenient to them.
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