Can location-based marketing overcome its creepiness factor?

A global survey from Marigold (formerly CM Group) finds 67 percent of U.S. consumers think ads based on location data are “creepy” with only 31 percent comfortable sharing their location in real-time.

Ads based on location data overall were found to be the most “creepy” among the marketing practices explored, just ahead of ads related to something they talked about near a smart device (63 percent) and retargeting ads derived from third-party cookie tracking (61 percent).

Consumers have become accustomed to using location-based technologies when driving their cars using Google Maps or searching for nearby restaurants or stores with their GPS-enabled mobile phones. The technology also powers in-store navigation via apps from Home Depot, Lowe’s and Walmart.

Uber and Lyft last fall rolled out location- and time-targeted ads across car rooftops.

However, the promise of sending coupons to shoppers in aisles in real time as they pass by in-store displays or sending two-for-one happy hour appetizer alerts to drivers as they approach a restaurant haven’t lived up to the hype.

The opportunity is still being touted, however, with the average consumer spending four hours and 29 minutes daily on mobile devices, according to eMarketer. Also, mobile advertising in the U.S. reached $34 billion in 2022, the biggest share of the overall $77 billion digital market, according to BIA Advisory Services.

A RetailWire webinar from last August discussed how the complexity of implementing infrastructure and integrating systems has kept retailers from taking advantage of location-based technology.

Getting opt-in from consumers also remains an obstacle. Google found Chrome telemetry data showed browsers either ignored or dismissed permission prompts by an average of 85 percent and another nine percent blocked them. Only seven percent allowed permission.

Asif Khan, founder of the Location Based Marketing Association (LBMA) and CEO of GroundLevel Insights, recently told CMSWire, “It comes down to the app or company wanting the data to be very clear in articulating to the consumer why they want it and what they are going to do with it.”

• The Consumer Trends Index 2023 – Marigold
• Personal Data: What Will Consumers Share for, and What Goes Overboard? – MarketingCharts
• Uber Launches Dedicated Advertising Division To Serve The World’s Biggest Brands – Uber
• Are retailers missing opportunities to leverage location-powered experiences? – RetailWire
• Nearly a third of all US media time will be on mobile this year – Insider Intelligence/eMarketer
• Mobile Advertising Expected to Surpass Direct Mail for the First Time, in BIA’s 2022 U.S. Local Advertising Forecast; As Economy Grows and Overall Spending Reaches $161.5B – BIA Advisory Services
• Permissions request chip – Google
• Where Does Location Tech Fit in CX Roadmap? – CMSWire