For a few years now, there's been a lot of interest in location-specific advertising, which has resulted in a plethora of location-based opportunities. The flipside is that the explosion of options can be overwhelming for brands wanting to get in on the SoLoMo action. Steve Moynihan, head of JiWire's national sales team, explained how the company is making client transitions into location much more inviting.
With 50 million monthly unique users, JiWire is one of the largest location-based advertisers, which has given it the ability to not only do thorough testing on location, but also extensive studies into how consumers are using the technology. From a study on the behaviors of moms and location-based applications specifically, JiWire found that 50 percent of moms use location to check in; 45 percent to find points of interest; 39 percent to find store locations; 25 percent to connect socially with others; 22 percent to read social customer reviews; and 21 percent to take advantage of sales, promotions, or coupons. These mobile moms are engaging with locations daily on their phones -- the key is getting your message to them.
"There are three types of location data," Moynihan said. "There's the IP address, which is not precise when it comes to knowing where someone is; there's GPS, which is much more precise, but still not the most accurate; and then there's location context.
"With GPS, someone inside a Starbucks looks exactly the same as someone walking by a Starbucks," Moynihan added. He went on to explain that those two people have very different consumer needs. The consumer already in the Starbucks could be a male early adopter sitting with a latte working on his iPad, while the woman walking outside could be an on-the-go mom who wasn't planning on going in but might be convinced if a coupon popped up as she passed. Location context is able to differentiate those two consumers.
JiWire employs location context in all of its location-based advertising, using "geofencing" to create a virtual zone around a very specific location, like a mall. This allows clients to reach only the people they want to reach. Then it takes two approaches to geofencing -- in the location, and around the location.
"Location defines the audience," Moynihan said. "In malls there are affluent shoppers; in cafes there are digital trendsetters; and in hotels there are leisure travelers. The goal with the zone around the location is to drive consumers to your location." JiWire enables clients to extend location beyond the check-in, "locationize" their brand, and reach new consumers and existing consumers, wherever they are.
For clients wanting to target moms, JiWire found that 85 percent prefer ads that are locally relevant to them, and 56 percent are more likely to engage with location-based advertising. Further, it found that location triples ad performance. A localized ad sees a click-through-rate lift two-times higher than a standard ad. Moms are ready for location-based services -- are you?
Lucia Davis is associate editor at iMedia Connection.
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