The interplay of retargeting and location revisits in location-based advertising

Dominik Molitor, Peter Pal Zubcsek, Martin Spann, Philipp Reichhart

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

The proliferation of mobile sensing technologies has enabled firms to target ads based on consumers' location, also known as location-based advertising (LBA). We propose that firms consider a new targeting method for LBA that we call location retargeting - displaying mobile advertising offers to users who revisit the area around a particular store. Using a large data set from a major European telecommunications service provider, we investigate the effectiveness of location retargeting relative to retargeting - displaying ads that have previously been displayed (independently from the location history of the targeted user). We find that location revisits significantly improve click rates, demonstrating the potential of location retargeting. Compared to first-time visits, the first exposure to offers at revisited locations lead to a 64.8 percent higher response. Further, controlling for retargeting and location revisits also improves the goodness of fit of our offer response model.

Original languageEnglish
Title of host publication40th International Conference on Information Systems, ICIS 2019
PublisherAssociation for Information Systems
ISBN (Electronic)9780996683197
StatePublished - 2019
Event40th International Conference on Information Systems, ICIS 2019 - Munich, Germany
Duration: 15 Dec 201918 Dec 2019

Publication series

Name40th International Conference on Information Systems, ICIS 2019

Conference

Conference40th International Conference on Information Systems, ICIS 2019
Country/TerritoryGermany
CityMunich
Period15/12/1918/12/19

Keywords

  • Location Retargeting
  • Location-Based Advertising
  • Mobile Analytics

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