Location data and the leap towards smart advertising

Brand advertising is changing thanks to location data. It’s becoming much more personal and the relationship between advertiser and consumer is evolving.

Connecting the offline and the online

Location data is leaving its mark on marketing and advertising. Huge amounts of data on what goes on in the offline world is allowing brands to change the way they communicate with their customers.

Location data provides insights into the offline world. This works by understanding where a mobile device is in relation to a proximity sensor. This allows brands to understand the customer journey in great detail, and more towards more personalised, intelligent advertising.

Personalisation is key for marketers and advertisers

Before these kinds of insights were possible, brands used targeted adverts to reach their audience. The advert was often the same regardless of who engaged with it. There was little place for personalisation. The impact of accurate location data has produced the move away from this traditional method of advertising to new personalisation strategies and the desire for brands to create a one-to-one relationship between brands and their customers. This kind of advertising enjoys much higher engagement rates.

This is happening because of location data. It provides the insights that can facilitate this new kind of advertising as it paints a clearer picture of what is going on in the offline world. Personalised advertising is booming and should form an essential part of any digital strategy.

Answering the why and how

It’s now possible to understand the consumer journey in great detail. Methods of collecting location data have made this scalable, allowing brands to create a complex understanding of the behaviour and interaction of large audiences.

These insights answer important questions around consumer behaviour. This level of insight has previously been unattainable. Brands can now confidently answer the why question confidently. That is – why consumers are in certain locations at certain times and why they are interacting with certain brands or products. This attribution is now extended to the offline world.

It provides brands with the ability to learn and adapt in ways that have previously been impossible. This allows brands to be able to answer complex questions surrounding their customers, products and marketing strategy. With location data, brands can build up complex understandings of their customers and locations. This helps to answer important questions, such as why is footfall up on Wednesdays? Or why a certain product is outselling another?

A complete, smarter kind of advertising

Brands are utilising this and developing a much more effective way of communicating with their customers. This involves a one-to-one method of advertising. This feels personal and relevant for the customer and provides them with value. Audiences get content that is appropriate to their situation, rather than annoying adverts that they don’t want or need. Location data is changing digital and mobile marketing, and the way in which brands and audiences communicate.

Contextual advertising and location-based mobile marketing is the best way to personalise the experience. This level of personalisation, based on experience, is part of the driving force towards a new kind of advertising.

James Ewen

James is the head of marketing at Tamoco