Bauer Business Focus

Location, Location, Location: Data Based Marketing

Distance might not be best indicator.



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Even with the growing increase in location-based data available to marketers, Assistant Professor of Marketing Bowen Luo at the Bauer College of Business at the University of Houston says businesses should keep other consumer behavior in mind when advertising.

“By using location-based advertising through platforms like Google and Facebook, retailers are taking a bet that advertising is more effective among customers close to their stores. With the emergence of large-scale, detailed customer data, research shows that distance isn’t the best indicator.”

“Although retail advertising effects generally decrease in customer's distance to stores, this simple rule-of-thumb strategy misses out on including factors such as geo-competition, if a customer is closer to competitor store, or a customer's knowledge and awareness of retailer. ”

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