In the world of location based advertising, the dominant technique remains geofencing. An advertiser decides they want people within a certain radius of their store to see an ad, or to retarget visitors of their store. The technology behind this uses the latitude and longitude coordinates from the phone to build these audiences.
The past two years we’ve seen the emergence of Bluetooth beacons to create location based audiences. As a device approaches a beacon (and of course that device must have an app that can detect that beacon), a person can receive a marketing message pushed to their phone. This is proximity marketing.
The sophisticated beacon marketers take it a step further, and use beacons to build retargeting audiences. Here’s why.
Beacons build bigger audiences
While using lat/long to place a device at a location typically requires a person to use an app while at the location, beacon detection occurs quietly and passively in the background. This can double and triple the size of a retargeting audience.
Beacons are 10x more accurate than lat/long
Thinknear publishes a quarterly study on lat/long accuracy. It’s latest report shows that lat/long coordinates are accurate to within 100 meters (a football field) only 32% of the time. 68% it’s even worse! Garbage location data in, garbage audience data out. Conversely, beacons are accurate to within 30 meters 100% of the time. This degree of accuracy drastically improves the quality of mobile audience segments.
The exciting news to share is that when you combine both targeting tactics, using lat/long geofences AND beacons, the campaign click-through rates (CTR) jump 93% over using lat/long alone.
Across our data set, we see that geofenced only campaigns generate an average CTR of 0.42%.
Comparing that to campaigns that use both geofencing and beacon mobile audience data, the average CTR increases to 0.82% in mobile apps, or a 93.6% lift.
As much as we love beacons, we’ve never believed it’s an either/or world when building mobile audiences. Lat/long will always play a crucial role.
Want to supercharge your campaigns? Included audience data from beacons, too.