The power of place: How geo-targeting is shaping smarter marketing strategies
The evolution of geo-targeting
Geo-targeted messaging isn’t new but the digitisation of data collation and analytics means brands can accumulate deep layers of insight, model audiences and plan and implement campaigns much more quickly and effectively.
As Jonathan Harrison, Head of Digital Strategy at The7Stars says, “We’re talking about geo-location marketing now because it’s a universal currency that we can use across any media – postcode targeting allows you to instantly buy multiple channels, whether it’s the TV screen, Out Of Home or other digital channels. It gives you a currency across all of them and the ability to purchase in close to real time.”
Mail, particularly in the form of door drops, can easily be integrated into geo-targeting campaigns alongside digital channels. The inclusion of this flexible format brings a unique set of attributes, including tactility and message longevity, and high levels of trust and retention to the media mix. JICMAIL data shows that the commercial effectiveness of door drops1 has risen over the past six years with 13.9% generating at least one commercial action. At the same time, engagement with the channel has grown to a point where 84% of door drops have some sort of action being taken.
Factors driving brand take up of geo-targeting
The reasons behind geo-targeting’s resurgence are numerous:
- Regulatory barriers and consumer behaviours are making it harder to track a customer’s digital journey. Google may have reversed plans to deprecate third party cookies2 but the direction of travel is definitely towards greater consumer privacy and choice.
- Pressure on marketing budgets to deliver ROI means marketers are willing to evaluate a wider range of channels and strategies and are focusing on flexibility and integration. The 3.6% increase in direct mail spend3 in the latest WARC ad spend figures is a clear sign that brands will use channels that deliver connection and measurable impact.
- Geo-targeting means you are connecting with audiences that are already identified as more likely to consider buying your product or service, making your ad investment work harder and cutting down on wastage.
- The strategy offers more transparent and measurable outcomes, giving marketers greater control over measuring the effectiveness and efficiency of campaigns.
- It’s a cost-effective way of campaign testing via geographical control groups – for example trialling different creative approaches in a specific area to see which connects best with the audience.
As David Wilding, WPP Media Strategist, recently wrote4, “In media-targeting terms, there is a growing realisation that using geography as a “match key” to identify and target audiences can be much more effective than attempting to aggregate together an individual’s ID from disparately held and often inconsistent first-party data.”
How marketers are making use of geo-targeting
Look around and you’ll find geo-targeting being deployed in inventive, integrated ways across platforms and channels.
Viewers streaming their favourite TV show can be served different ads based on geographic location - even a call to action based on drive time from a business or restaurant (great for fans binge-watching The Bear with a craving for meatballs).
Out Of Home sites can deliver localised creative messaging or activations based on the immediate ambient temperature, as McDonald’s and others have demonstrated5.
And door drops can drive business for brands from retailers and restaurants to travel companies and more. The format is particularly well-suited for a customer acquisition push, as Princess Cruises demonstrated when it wanted to boost bookings and reservations from first time cruisers. It chose to deliver a high production catalogue to a carefully modelled audience identified in key postcode sectors and integrated the activity with digital channels by including a strong call to action using a QR Code, phone number and a URL telling the audience what the brand wanted them to do next.
This allowed response rates to be tracked so the company could understand which cruise holidays were booked from each page of the door drop, with the data feeding into future activity. The campaign proved smooth sailing and generated £1.5m in sales and an ROI of £20.10p for every £1 spent, while providing Princess Cruises with new leads to input into its ongoing CRM programme. A brilliant result!
Reach new audiences cost effectively with door drops
Geo-targeting is proving its value to a new generation of marketers as a strategic pillar of campaign planning and door drops based on rich, refined postcode data are a targeted way to reach the right people at scale.
Mail’s attributes strongly complement other channels and help drive the all-important ROI; research from WARC and Marketreach shows that campaigns that include mail are 52% more likely to report ROI effects and 43% more likely to report a rise in revenue.
Visit https://www.marketreach.co.uk to learn more about how mail can be effectively used as part of a geo-targeting strategy to optimise your marketing campaigns.
