JiWire recently launched a new advertising metric capable of accurately measuring the efficacy of location-based mobile marketing campaigns. The 'Location Conversion Index' - LCI - can track recipients of mobile ads to see if they end up shopping at a specific retail location.
The LCI purports to be the first ROI metric to measure the real-world impact of mobile-based ads, and it marks a major breakthrough for an industry in which outcomes have historically been hard to track.
The index uses JiWire's proprietary Location Graph platform to geo-locate customers who are close to a store, or heading towards it. Using the phenomenal power of geo-fencing, the LCI ensures only true store visits are counted as successful leads.
There is some staggering technology at work here - most marketing managers are already pretty excited by the possibilities of geo-location. Here’s how it works: billions of location tags map patterns of behaviour of opted-in consumers. It connects the dots of a users daily routine and can provide invaluable insights into personal preferences and spending habits.
Over time, this data can be used to build a comprehensive personal profile for each and every consumer. For example, if a mobile user regularly visits music stores and venues, businesses know they are worth promoting music-related products to. They can send targeted mobile ads relevant to those users. The LCI even adjusts itself according to the time of year, allowing for an extra promotional push as, say, the Christmas season approaches.
Of course, this acute level of accuracy has implications for consumer privacy protection. Taken in tandem with the mandatory regulations all mobile marketers must adhere to, this challenge has prompted businesses to approach their strategies in a more ethical fashion. In return, users are responding with a greater sense of brand loyalty - and that can only ever be a good thing for business.