NEW YORK: Mobile marketers taking a location-based approach are seeing growth in the availability of relevant inventory but need to be wary of the accuracy of the data they are using, research has said.
Thinknear, a location-based marketing platform, analysed data from more than one billion ad impressions and 500,000 consumer ad experiences during the fourth quarter of 2014.
It found a 7% decrease in location accuracy from that seen in the third quarter, a development attributed to apps that were new to the programmatic ecosystem.
The report suggested that app developers were "either not placing an emphasis on 'getting data right' or are playing 'fast and loose' with location data to capture higher monetisation rates".
At the same time, there had been an increase in the volume of mobile web traffic which, it said, "has traditionally had lower-quality location data".
"The good news is that the overall volume of high-quality location-enabled mobile ad inventory is increasing," said Loren Hillberg, president of Thinknear.
"The main takeaway here is that the opportunity to leverage location data to reach audiences and drive consumer engagement is fully in place," he added, "but marketers need to be vigilant with their vendors to ensure the accuracy of that location data."
The study looked in more detail at campaigns in four verticals – automotive, entertainment, retail and food & drink – and concluded, Marketing Land reported, that the use of more accurate location data had a significant impact on clickthrough (CTR) rates and conversions, with average lifts of 25% for the former and 81% for the latter.
This effect was most evident in retail and food & drink. For the former, CTRs were 34% higher and conversions up 113%, while, for the latter, the equivalent figures rose by 50% and 118% respectively.
Data sourced from Marketing Land, Thinknear; additional content by Warc staff