Report: Location-based marketing is increasingly valuable, but data accuracy remains in question

Recent Location Based Marketing Association global trends report shows areas of investment for location-based marketing

Marketers globally and across the region are seeing increasing value in location-based services and data targeting yet concerns about the accuracy of such data remains rife, a recent report has found.

The Location Based Marketing Association (LBMA)’s latest Global Location Trends report found that when it comes to the location and targeting-based data available to them, marketers are increasingly realising value in using location-based data to influence and engage audiences. Just over seven in 10 respondents globally consider location-based marketing to be important or very important.

The report’s authors noted COVID-19 and government application of location data in contact tracing over the last year has had significant impact on public perception of location data as something that goes beyond selling and promotion and drives public health awareness.

As a result, 80 per cent globally saw currently available location-based services ad targeting data as valuable and 81 per cent said it was actionable. In APAC, the figures were 79 per cent and 81 per cent, respectively. Yet only 57 per cent of global respondents believed currently available LBS ad targeting data was accurate, including 53 per cent of APAC respondents.

The fifth annual survey found 95 per cent of global companies are already using location-based services and data to reach customers, up 10 points year-on-year and 18 per cent between 2018 and 2020.

Besides the ability to target, key use cases for location-based marketing cited in the survey are for increasing brand recall (21 per cent of global respondents) and driving sales at the point-of-sale (17 per cent).

Overall, the report found 52 per cent of the marketing budget is going into location-based marketing, led by the North American market. The figure dipped to 49 per cent in APAC. But it’s expected to grow slightly in 2021 across APAC, led by the 28 per cent of global companies who say they’re making “significant investment” in location-based services.

The report found digital out-of-home advertising to be the one of the top media considered, up 11 per cent year-on-year in North America but also up moderately across all other markets represented. Two-third of global respondents viewed DOOH as location-based media. Mobile, online, radio and static billboards were also areas of location-based investment for advertisers across APAC.

In terms of location-based technologies in use, Bluetooth technology was most prevalent globally, and 49 per cent of companies surveyed were planning to increase spend in this area in 2020. This was followed by beacon technology (78 per cent utilisation globally and 75 per cent in Asia-Pacific and China); Wi-Fi (60 per cent globally, 64 per cent in APAC); and GPS (52 per cent globally, 50 per cent in APAC). Meanwhile, NFC took the biggest hit to adoption, experiencing a 22 per cent drop in investments in APAC.

Topics considered of most importance globally to location-based marketing, according to the survey and in order of percentage, are location-based advertising, location analytics, Internet of Things, social location services, augmented reality/virtual reality and merging mobile and digital out-of-home.

The LBMA industry report was based on a survey of 871 companies globally.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page, or join us on Facebook: https://www.facebook.com/CMOAustralia.

 

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

Hi,When online retailers establish their multi channel strategy and they are using or will to use live chatbot to support their customers...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Thanks for nice information regarding Account-based Marketing. PRO IT MELBOURNE is best SEO Agency in Melbourne have a team of profession...

PRO IT MELBOURNE

Cultivating engaging content in Account-based Marketing (ABM)

Read more

The best part: optimizing your site for SEO enables you to generate high traffic, and hence free B2B lead generation. This is done throug...

Sergiu Alexei

The top 6 content challenges facing B2B firms

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Check out tiny twig for comfy and soft organic baby clothes.

Morgan mendoza

Binge and The Iconic launch Inactivewear clothing line

Read more

Blog Posts

Getting privacy right in a first-party data world

With continued advances in marketing technology, data privacy continues to play catchup in terms of regulation, safety and use. The laws that do exist are open to interpretation and potential misuse and that has led to consumer mistrust and increasing calls for a stronger regulatory framework to protect personal information.

Furqan Wasif

Head of biddable media, Tug

​Beyond greenwashing: Why brands need to get their house in order first

Environmental, Social and (Corporate) Governance is a hot topic for brands right now. But before you start thinking about doing good, Craig Flanders says you best sort out the basics.

Craig Flanders

CEO, Spinach

​The value of collaboration: how to keep it together

Through the ages, from the fields to the factories to the office towers and now to our kitchen tables, collaboration has played a pivotal role in how we live and work. Together. We find partners, live as families, socialise in groups and work as teams. Ultimately, we rely on these collaborative structures to survive and thrive.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in