Here’s How Companies Use Your Location Data

The popularization of smartphones gave marketers a unique opportunity to obtain targeted location data for their target demographics. Marketing campaigns across numerous fields and niches now rely on location data because of the fact that this is the sort of thing that could potentially end up allowing them to show ads to users that would be interested in them. However, what do these companies actually use this data for? With data privacy violations on the rise, this is a pertinent question to ask.

With all of that having been said and now out of the way, it is important to note that the two most widespread uses for location data are for digital customer experience enhancement as well as geomarketing and targeted communications. The former reason, more specifically customer experience optimization, was given by 73% of travel and tourism companies, 69% of financial services, 65% of online retail companies, 59% of real estate companies and 43% of transport and logistics companies.

The second widespread reason, namely geotagging and targeted communications, saw even more respondents citing it. The industry that uses location data for such purposes the most is the ecommerce sector, with 78% of respondents saying that they use it in this manner. Coming in second is travel and tourism with 69%, real estate with 68%, financial services by 63% and transport and logistics services by 53% with all things having been considered and taken into account.

Route optimization is also an important use for location data, although this is more important for transportation companies than others. 74% of logistics and transport services use location data for this purpose, with 53% of retailers, 33% of real estate companies, 30% of financial services and just 10% of travel and tourism companies also citing this as a use for location data.

This data comes from a survey conducted by the Boston Consulting Group, and it highlights the role that location information plays in almost every major industry. Most of its uses are innocuous, but users would still be hesitant to agree to share it due to how untrustworthy many companies can be with such sensitive data.

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