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Targeting and Trust Series: Part Five – IP Geolocation Data in Action

This is the fifth, and final, installment in our “Targeting and Trust” series of blog posts, dedicated to why IP-based geolocation data is well positioned to deliver both the accurate targeting digital marketers need for improved response rates and the trust consumers crave in terms of personalized promotions in a non-intrusive manner. Here we outline the many different ways IP geolocation can be applied to your marketing efforts.

As we’ve mentioned before, targeting customers by location isn’t new. But as the years have gone by, and location-intelligence technology has improved, brands are finding many new and unexpected applications for geolocation data. Here are some examples.

Find “Clusters of Similarity”

You have a group of users in mind to engage. For example, you might want to target smokers for a public-health campaign. To do this, you can find out the regions with the highest population of smokers, then geofence by IP address to direct your campaigns toward them.

Combine IP Geolocation with “Real-World” Events

When an event is local in nature, brands can factor it in to make a campaign more successful. For example, a clothing retailer could use local weather data to change its front page offers in different regions—bikinis in a heatwave; coats during a cold snap.

Run Time-Sensitive Campaigns

When a brand is running an event that travels across multiple regions, it can phase in or stagger a campaign. For example, a music label could geotarget around a band’s touring schedule.

Look at Buying Patterns by Location to Make Budgets Go Further

This is geolocation “after the fact.” Often, after a campaign has run, the metrics will reveal strong local differences in uptake. Brands can scrutinize this data to make the next round of promotions more effective. These insights can be unexpected. For instance, a company might find it sells more sunscreen in places that get less sun because residents are more likely to travel to hot countries.

Link the Real and Digital Worlds

Often, brands run campaigns to make people take actions in physical locations. IP geolocation presents the chance to connect the dots. So, a retailer might send discount codes to customers and then use IP addresses to see how many recipients responded by visiting local stores.

Target Mobile Users on Wi-Fi

It’s estimated that 80 percent of mobile users connect via Wi-Fi networks, which are generally faster and often cheaper. But these users are invisible to most mobile ad networks. Adding IP geolocation to the stack brings them back. Ad providers can offer targeting by location, without relying on software downloads or user opt-ins.

Add the Ability to Tailor Campaigns to Your Needs

Sometimes you want scale. Sometimes you want to micro-target. It depends on your campaign.

As we’ve discussed, different geolocation approaches deliver different levels of accuracy. GPS and other “lat-long” techniques can pinpoint consumers to a few feet. However, they are limited by the need to have users opt in. This is accuracy at the expense of reach.

Meanwhile, IP geolocation is almost universally available. And, it provides the ability for hyperlocal targeting down to postcode level, globally.

However, some brands have the luxury of choosing from both options. Here’s how it often works. They use IP geolocation to make broadly targeted offers. This builds trust and customer satisfaction. Having established this trust, they ask users to opt in for micro-targeting via GPS. With both IP and GPS available, companies can then run campaigns that favor reach over accuracy or vice versa. They can move the customer down the “purchasing funnel” as required.

Augment Geolocation with Other IP Data Points

In this series, you have read how IP geolocation gives marketers the ability to target effectively by geography—without intruding on privacy. This type of targeting frequently delivers much higher click-through rates. Inventory rates go up, too.

Meanwhile IP geolocation specialists, such as Digital Element, can layer on more targeting attributes besides location. The addition of more IP-based targeting parameters can make campaigns even more effective. Digital Element can give insight into characteristics such as connection speed, Internet Service Provider (ISP), carrier data, home/business types and more. It has also developed an advanced proxy/VPN database.

IP intelligence and geolocation data—and its applications—have evolved over the last several decades to address the ever-changing needs of a global digital marketplace. There’s no better time than the present for brands to explore (or revisit) the use of location-based data in their marketing efforts.

Also, feel free to review or catch up on the “Targeting and Trust” series here:

Part 1:           The Digital Marketing Crossroads focuses on how digital marketing has evolved and how location-based targeting fits in to navigating the road ahead

Part 2:           Options for Location-Based Advertising looks at the advertising options for digital marketers who want to “go local”

Part 3:           Using IP Geolocation to Overcome Marketing Challenges delves into how IP geolocation technology helps digital marketers overcome challenges they face every day

Part 4:           The Fact About Using IP Geolocation Data compares the myths and realities of IP geolocation data

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