Location Based Services

Location-based advertising makes for booming business

11.05.2018 08:37

Advertising based on location and behaviour is much more accurate than it was just two years ago. Location-based advertising opportunities are not only more technically mature, customer expectations have also developed in this direction – as recent market research shows.

How has consumer behaviour changed?

The SME Research 2017 study by the Austrian Trade Association (Handelsverband Österreich) examines the use of smartphones while shopping. According to their findings:

  • 68% of consumers own a smartphone (compared to just 43% in 2013)
  • 77% of users have GPS activated for their app usage (no comparative data available from 2013)
  • 21% of users already use their smartphones to buy products (2013: 9%) 

The Mobile Communication Report from the Mobile Marketing Association Austria further reveals how important smartphones have become for advertising among brick-and-mortar retailers:

  • 66% of users search for stores or in stores on their smartphones
  • 65% use a smartphone while shopping 

What new possibilities are there for smartphone advertising?

Classic geo-targeting addresses all people within a certain radius. Although this allows for significant range, it also has the drawback of low accuracy and subsequent scatter loss (depending on the campaign objective). IQ mobile can replace these radii with accurately defined outlines of POS or POI (points of sale, points of interest) giving you the following advantages:

  • Precise location data
  • Increased customer traffic
  • Accurate targeting 

IQ mobile offers advertising companies the following benefits:

  • Premium contexts

o Play advertising in premium environments and on top pages & apps

  • Qualitative advertising contacts

o Visibility guarantee

  • Individual billing models


How are hyper local targeting campaigns implemented?

The setup takes place in 3 structured steps designed to guarantee quality and success.

  • Step 1 – Definition of places in the system

Before we can generate useful location-based data for a media campaign, the individual locations must be created in the system.

In addition to geographic radii, it is also possible to define precise polygons (outlines around specific points of interest). 


  • Step 2 - Measurement & collection of unique device IDs

Mobile devices constantly send position signals via GPS. The systems collect these anonymous device IDs exactly at those places we previously defined. This helps us to understand exactly who is in these physical places. Based on these findings, we can create new target audiences that we then address in the context of the media campaign – either in real time or through re-targeting at a later date.



  • Step 3 – Targeting of individual user groups

Based on the location data and additional targeting, the audiences that have been created can be addressed via mobile advertising in apps or on mobile websites.

What kinds of audiences can be reached with hyper local targeting?

The following audiences would be conceivable:

  • Loyal Customers - Target groups who regularly visit a specific POI
  • Lost Customers - Target groups who have visited a particular POI but have not returned
  • Customers of Competitors - Target groups who regularly visit competitor locations
  • Drive-By Users – Catchment Area – People who regularly spend time near the POI, i.e. on their way to work

An important USP worth mentioning: We can create brand new target audiences based on places, i.e. pet owners based on visits to veterinary clinics or football enthusiasts based on visits to stadiums.


Best practise example with BAWAG P.S.K.

As part of the Vienna Auto Show, IQ mobile and media.at cooperated to support the client BAWAG P.S.K., jointly implementing a location-based advertising campaign. Using hyper local targeting, visitors to the auto show were specifically addressed via ads on their mobile devices, alerting them to an offer related to the Vienna Auto Show.

"With the identification of high-quality POI data sources, a high volume of location data, and high data integrity, we are revolutionising location-based marketing with hyper local targeting. Location-based advertising becomes much more precise, more transparent and, with better data protection, more consumer-friendly," says Harald Winkelhofer, IQ mobile founder and CEO.

Our take at IQ mobile

Technical innovation is highly valued by customers, who don't mind sharing their data – provided the benefits for them are crystal clear and easily accessible. This is shown by numerous studies, as well as the more recent increase in the use of smartphones for purchasing.

Speed and convenience is also the motto of Amazon Go Just Walk Out Shopping. We took a closer look at the app, how it works, and what impact it will have on retail apps. You can read our report here.

You can learn more about how to advertise accurately on a location-specific basis from our two-part blog series, parts one and two.

If you want to get more detailed information about location-based services and the potential they hold, we recommend reading our whitepaper. The fact that it has been downloaded more than 200 times shows just how timely the topic is. Access the whitepaper.



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