Location data can help identify audience segments and purchase intent, based on real-world behavior. It can provide customer insights and competitive intelligence, says Greg Sterling, Vice President, Insights at Uberall.
Due to COVID-19 outbreak, there has been a sudden spurt in online shopping. Do you see this trend continuing, or will people be back to the stores after the pandemic is over?
People fundamentally want to go back to stores. But they will also continue to shop online; the Q1 2021 e-commerce data confirms that. Omnichannel sellers will thus be in a stronger position than pure-pay online retailers. A lot of shopping decisions in the future will be situational: “Do I have time to shop or do I want something delivered”? But certain types of products or commodities that were previously bought at the store may now be purchased more frequently online or through online subscriptions (e.g., coffee, pet food).
In 2020, we saw that e-commerce decline when stores were open. But 20%-30% e-commerce is probably here to stay. The flip side is that the majority of buying will remain offline. We are now in an era of true omnichannel shopping. The bright line between online and offline shopping is disappearing, think “buy online pick up in store.”
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How can location technology make shopping more exciting for buyers and more profitable for sellers?
Location enables convenience and offers a way to personalize campaigns. It can make ads more relevant and thus effective. In terms of convenience, witness what Google and Albertsons are trying to do with grocery pickup and the Google Maps integration.
There are also lots of in-store/venue mapping use cases (remember beacons), which are both interesting and useful but which haven’t been fully developed. Location-based AR is another area that can make shopping (in store or nearby) more interesting and novel. These use cases are still largely emerging but will be established solidly in the next 3-5 years.
One caveat: the new environment of consumer privacy means that marketers and retailers will need to win and maintain the trust of their users in order to obtain the data they need to offer these experiences and promotions. In the near term, there will be much less third party location data to work with.
Location technology has become a mainstay for advertising and marketing companies in the aftermath of Covid. How does this technology ensure better and targeted messaging, and eventually, better returns?
Location data can help identify audience segments and purchase intent, based on real-world behavior (i.e., store visitation). It can provide customer insights (how far are my customers coming from?) and competitive intelligence (who else do they visit?).
Location data can also track the impact of advertising (digital and traditional) from multiple media channels to real-world outcomes (store visits, conversions). All this can enable more accurate targeting and better understanding of media effectiveness for greater efficiency and ROI. The privacy qualification applies but, generally, location data connects the digital and physical worlds for much more customer insight than was possible previously with only online tracking.
Also Read: The value of location intelligence for retailers
Can you share a few emerging trends in location-based advertising and marketing?
The biggest one is privacy of course. Apple’s iOS 14.5 and opt-in tracking rules will reduce the data available to marketers in the US in the near term. Outside the US where Android dominates, the impact won’t be as significant. Marketers will thus need to emphasize first party data cultivation. Google is arguably in the strongest position of any company to exploit location since it has a mountain of first party data and Maps, which rely on location to function. As mentioned, location-based AR will definitely be a big deal in the coming years.
There will also be lots of services that utilize location to deliver convenience and efficiency. To use the grocery example again: Grocery pick up at Whole Foods stores involves sharing your location with Amazon, then checking in 10 minutes ahead of arrival and then notifying the store of your parking spot via an app. Smart retailers will use mobile apps and location to create better and more efficient customer experiences that cement loyalty.
Can you tell us a little about Uberall, and how does the company bring value to its clients by using location data?
Uberall manages more than 1.3 million business locations on behalf of roughly 1,500 companies globally. It syndicates that data to numerous relevant search engines, mapping and navigation apps and vertical sites by country. It helps companies improve the online customer experience with accurate and complete information, which in turn results in offline visits and purchases. It also offers a variety of other capabilities and services including store locators.
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