Location-based marketing hasn’t just emerged as another option in the promotional toolkit, it’s become a vital means of ensuring profitability for businesses.
Here, we’ll look at key statistics that underline the reasons why this marketing technique is gaining such popularity. We’ll also explore how companies are deploying it and what results they’re getting.
Location-based marketing in numbers
1) Why is location-based marketing so popular?
Location-based marketing has existed in some form for decades, but a perfect storm of trends have come together to make it increasingly applicable today.
Essentially, it comes down to the advent of the networked age, and the rise of mobile technology in particular.
Today, two thirds of the world’s population – approximately 4.75 billion people – are connected via mobile devices. An even higher proportion of adults (around 85% in the UK) use mobile devices regularly.
This provides a potential wealth of insight for businesses. 73% of consumers allow apps to access their location during use, and one third of all searches are now tied to location.
And, consumers are calling out for it! 46% of consumers who use ad blockers do so because they deem the ads irrelevant – something location-based marketing solves easily (E-Consultancy).
2) How are businesses using location-based marketing?
Of these, 82% are using this technique to personalise their marketing activities, while 85% intend to start doing so within the next year.
For users – many of whom are now developing a more mature approach – map-based visualisation was cited as the highest priority when choosing a location-intelligence solution, followed by Google integration at 66.7%.
Both of these aspects are at the heart of the Periscope® model.
3) What results are businesses getting?
66% of marketers cited location-based advertising as the ‘most exciting’ mobile opportunity out there (E-Consultancy). The trends outlined above mean this proportion only looks set to grow.
Back in 2018, BIA/Kelsey estimated the total annual spend on location-targeted mobile advertising among US businesses at $17.1 billion. This looks set to rise to $38.7 billion by 2022.
In terms of the benefits businesses have gained, Lawless Research found companies were profiting in the following ways:
- Growth in customer base (85%)
- Higher customer engagement (83%)
- Higher response rates (83%)
- Deeper knowledge of customer needs/interests (77%)
- Improved return on investment (74%)
- Increased lift (70%)
Location-based intelligence is ‘critical’ or ‘very important’ to business success, according to 66% of enterprises. This figure rises to 70% among telecommunications companies (Forbes).
Both small and large businesses stand to benefit. Enterprises of 1,000-5,000 staff members cite location intelligence as critical (Forbes), while smaller businesses gain a means to challenge larger competitors.
Billion-dollar companies are building their entire future models around location-based marketing. Just one example is Starbucks, who has made location intelligence a key facet of its loyalty and marketing campaigns, which are a significant contributor to its 90 million weekly transactions (The UK Domain).
With stats like this, it’s clear that location-based marketing has knocked more traditional techniques clean out of the park. So, if you’re aiming for business success in the new era, you need to be leveraging location intelligence.
Optimise your business strategy and marketing initiatives with Periscope® from Newgrove; sign up for a free, 10-minute demo today.