David Petersen, CEO, Sense Networks: The likelihood of someone immediately changing their plans just because they saw a mobile ad is very low. In fact, we found that in Q1, across all campaigns, there was no correlation between real-time distance to a retailer and clicks on a mobile ad. Real-time distance was meaningless to the results of those campaigns.
Kristina: What is it that businesses don’t understand about location data?
David: Location data is widely understood, but from a real-time perspective. What marketers misunderstand is how analyzing location over time can reveal valuable information about a person’s lifestyle and behaviors and, therefore, predict future actions. Using location-powered behavioral profiles enables advertisers to better understand consumer shopping habits and reach them while they are planning future purchases, beyond when they’re actually in a geo-fence and it may already be too late to impact behavior.
Kristina: How important is properly understood and used location data to a brand’s overall campaign performance?
David: Extracting consumer behavior from historical location data for use in mobile targeting absolutely increases results and ROI. We consistently see a 3-5x lift in ad clicks through our technology. Most marketers today are engaging in location-based advertising through geo-fencing – targeting everyone in the same areas, within a circle, with the same ad. This means that ad will not be relevant to many of the users who receive it – they just happened to be in a certain location, at a certain time. Sense’s approach takes location targeting to a new level, based on past decisions that predict behaviors. In fact, during a recent mobile ad campaign with Quiznos, the company saw 3.7 million new impressions and had a 20 percent boost in coupon redemptions based on Sense’s behavioral and location-based targeting approach.
You can read part one of my chat with David and Sense Networks here.