Total ad-fraud losses amount to $42billion in 2019 alone. With so many wasted dollars and new privacy policies being implemented, brands and marketers are starting to rightfully demand more transparency from their location-based advertising data. Independent, third-party companies are improving business outcomes of location-targeted campaigns with trackable, real-time analytics for fraud prevention. In this presentation, Jason Smith outlines the importance of transparency in the location data marketplace and how transparency tools can be utilized to improve marketing in the long-term.
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JASON SMITH
US CHIEF BUSINESS OFFICER
• 17 years of leadership in both the Out of
Home & Digital Advertising space
• Previously
• VP of Digital Investments at Horizon Media
• Senior Partner & Managing Director of
Mindshare Chicago’s Digital Investment
Group
• Now leading business & performance strategy
for Location Sciences in the US, building
strategic relationships in the US
marketplace while expanding the US team
3. LOCATION SCIENCES | THE STATE OF LOCATION ADVERTISING 2019LOCATION SCIENCES | THE STATE OF LOCATION ADVERTISING 2019
Improving performance and
transparency of location-based
digital advertising.
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4. LOCATION SCIENCES | THE STATE OF LOCATION ADVERTISING 2019LOCATION SCIENCES | THE STATE OF LOCATION ADVERTISING 2019
Media-agnostic analysis
of location-targeted
advertising data.
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5. LOCATION SCIENCES | THE STATE OF LOCATION ADVERTISING 2019
Understanding IP and GPS data
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IP Data
Varying in quality, IP data
is not as accurate nor as
reliable as GPS as it is
simply an entry point of
the device to the internet .
GPS Data
This is the most precise
form of location data and
is extracted via the
phone’s operating system
or the phone’s handset.
Fraud in GPS signals
No permission
Fake GPS signals
Swapping IP for GPS
6. LOCATION SCIENCES | THE STATE OF LOCATION ADVERTISING 2019
Questioning quality
Are my ads really
being deployed near
my desired locations?
(stores or venues)
Can I be sure of the
quality of the location
data being used?
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Does location improve
the performance of my
advertising program?
Summary findings: 2019 The State of Location Advertising
Report
LOCATION SCIENCES | THE STATE OF LOCATION ADVERTISING 2019
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Key
findings
Location signal quality
is the biggest challenge
to the $145 billion mobile
advertising market
65%
of budget is
wasted on poor-
quality
and mistargeted
location data
36%
Of GPS enabled
apps were
found to display
location fraud
14%
Of impressions
use GPS location
signals when
running location
campaigns
40%
increase in
location
marketing
performance
is driven by
transparency
There is a large
delta between
high quality
and low quality
data suppliers
On Average:
Inaccuracy in
GPS signals in
location
marketing leads
to waste, fraud,
and subpar
performance
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Location
accuracy
Only 71% of impressions meet
target specified
by brands.
Point of Interest (POI) Health
measures the proportion
of impressions which
are accurately served
within the location
parameters requested
by the advertiser.
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Impressions met Targets %
71%
Met
29%
Missed
Leading suppliers
demonstrate that
location accuracy at the
POI level
is possible.
Possible causes:
● Inattention
to the campaign
● Incorrect
campaign set-up
● Turning off targeting
9. LOCATION SCIENCES | THE STATE OF LOCATION ADVERTISING 2019
Excellent
100% - 90%
Good
90%-80%
Warning
80%-50%
Alert
50% - less
40% 20% 15% 25%
Suppliers Suppliers Suppliers Suppliers
Location accuracy
9
This shows the delta of performance between suppliers - some are better than others.
Only 60% of suppliers accurately deliver within
the location parameters requested by the
advertiser.LOCATION SCIENCES | THE STATE OF LOCATION ADVERTISING 2019
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This is a measure of the
quality of location signals
used in the campaign.
The score shows the
% of location signals that
are of good enough quality
to be able to deliver in the
area intended
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Location signal
quality index
Impression Quality %
36%
Low
36%
Poor
Quality
64%
Sufficient Quality
Possible causes:
● Negligence / lack
of understanding:
Suppliers are unsure of the
approximation of IP signals when it
comes to location targeting
● Lack of scale / economics:
IP locations are cheaper
and more readily available
to obtain than the more accurate GPS
locations. Because of the lack of scale
and the price, suppliers opt
for IP signals instead of GPS
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Signal quality
scoring by
supplier
There is a large delta
of capabilities in relation
to location quality. There
are some suppliers that
do very well and others
that score badly
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Excellent
100% - 80%
Warning
80%-50%
Alert
50% - less
35%
Suppliers
35%
Suppliers
30%
Suppliers
Only 35% of suppliers have signals of good enough
quality to be sure of reaching the target.3
3 Data received by Location Sciences through its digital ad
tag for January-June 2019.
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65Budget wasted
%
29%
Mistargeted
Location
36%
Poor
Quality
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Location transparency
improves performance.
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Turning towards
transparency
Location quality improves
significantly with transparency
and optimization, ensuring
the correct quality signals
are being used to deliver
targeting.3
When comparing location
accuracy and signal quality
before and after optimizations
the following changes were
discovered:
14
40
Impressions with
good quality location signals when
transparency measures are in place
%
10
Increase in accuracy
when transparency
measures are in place
%
3 Data received by Location Sciences through
its digital ad tag for January-June 2019.
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Conclusion:
transparency is key to performance
Inaccurate or
negligent use of
location data
has led to up to 65%
of mistargeted digital
spending, much of
this waste is
completely
avoidable.
Independent
transparency into GPS
vs. IP level signals can
play a significant role
in eliminating industry
wide location data
inaccuracy and fraud.
Location marketing
performance can be
improved by requiring
technology that allows
for more control of
GPS and high quality
IP signals within
location buying.
Partner selection is
key to effective
location advertising -
some suppliers are
very good and others
lack the experience
and tech
to deliver effectively.
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About Location Sciences Location Sciences is a UK based, publicly listed global location intelligence company. We work in partnership with brands and media agencies to help improve the performance of digital ad campaigns and bring greater transparency to location-based advertising. Our proprietary platform, Verify, provides independent, media-agnostic analysis and authentication of the accuracy and quality of location-targeted advertising data.
About Location Sciences
Location Sciences is a UK based, publicly listed global location intelligence company. We work in partnership with brands and media agencies to help improve the performance of digital ad campaigns and bring greater transparency to location-based advertising. Our proprietary platform, Verify, provides independent, media-agnostic analysis and authentication of the accuracy and quality of location-targeted advertising data.
Pre-bid and post bid analysis
IP – MRC guidelines recommend against use of IP addresses as they generally are not accurate or precise for proximity advertising
GPS relies on both the user enabling GPS on their device as well as mobile apps having permission to use GPS location data. Because of this GPS is often less available.
The current marketplace dynamic is a want for more accuracy and GPS, which incentivizes fraud from apps that don’t have location permissions, and others who simply fake or swap GPS signals to meet marketer demand.
The importance of spotting these bad signals is critical to the success of location-based advertising.
At Location Sciences we wanted to understand what causes fraud in the location ecosystem and focused our newest report – The State of Location Advertising on answering 3 important questions.
1) Are my ads really being deployed near my desired locations (stores or venues)?
2) Can I be sure of the quality of the location data being used?
Does location improve the performance of my advertising program?
Our research is based on 500 million verified impressions delivered across UK and US proximity campaigns.
Analysis cover the key location-based advertising verticals including QSR, automotive and retail.
Across more than 20 suppliers.
Location signals, or the makeup of data the informs proximity marketing, is the biggest challenge to today’s $145B global mobile advertising market.
To start, we examined the Point of Interest Health or the accuracy of impressions served against location parameters requested by the advertiser.
Our analysis shows that 71% of impressions currently hit the target specified by the client, meaning that 29% of impressions are missing the mark.
The reasons for this inaccuracy ranges from something as simple as incorrect campaign setups to complete egligence in applying proper targeting to location efforts.
But we know that 71% of impressions were targeted to the correct target, meaning location accuracy is possible.
Our data shows that there is a considerable delta btw suppliers that deliver poor accuracy for marketers today and that deliver as they should.
Only 60% of suppliers accurately deliver at least 90% of impressions to the desired target of location campaigns. With the other 40% delivering excellent targeting at 90+% on target.
In addition to measuring the accuracy in which an impression is delivered to a desired point of interest,
We also looked at the quality of the signals and data being used to deliver the location campaigns. Our location signal quality index provide a % of location of location signals that have good enough quality to deliver against the intended location. A combination of authentic GPS vs. IP presence and variant quality levels of IP level data.
On average 36% of data used within location marketing today is not good enough to meet the standards needed within a proximity campaign.
Possible causes include lack of IP knowledge and its relationship to accuracy. As well as overt usage of lower quality IP in exchange for GPS due to IP data cheapness.
When examining signal qulity scores against the suppliers within our report, we found that only 35% of suppliers were consistently using signals that were good enough to use within proximity marketing. High authentic GPS composition and IP within less than a kilometer accuracy.
What does this mean for brands?
· Up to $66k of $100k is being wasted on poor quality and mistargeted location impressions
· For advertisers spending $100K on location advertising, $30K of their investment is being delivered outside the area required
· Up to $36k out of a $100k advertising budget could be wasted because the signals used are not of sufficient quality to deliver the targeting requirements
Much of our findings were rooted in marketers inability to decipher this data themselves and make better choices. The results of our research support transparency as a key tool in driving success of location marketing today.
We compared the location accuracy and signal quality before and after optimizations guided by Location Sciences Verify auditing tool and found a lift of 40% in the signals being used within location marketing and a 10% lift in the accurate delivery of impressions to the intended target.
Significant boosts in media performance driven simply by having a transparent view the data that fuels location marketing investments, and putting the power of optimization and accuracy back into the hands of the marketer.