Location data has been a boon for marketers who have learned to use it in their customer segmentation, analytics, attribution and targeting. But with new restrictions, the location industry will undergo major changes in 2020.
What effects will privacy concerns and regulations have on location data practices this year?
Marketers are vetting suppliers more carefully and investing in developing the ability to collect their own location data. They’re also using more general, nonbehavioral location data for contextual marketing around weather or region.
Are consumers comfortable sharing location data?
Although about 30% of US smartphone owners are uncomfortable sharing location data, the majority are either neutral or OK with it.
How has the availability of location data changed over the past year?
iOS 13 has cut the flow of some types of location data by as much as 68%. Restrictions on Android 10 and under the California Consumer Privacy Act (CCPA) will further reduce the flow of data in 2020.
How will supply changes affect pricing?
Prices for premium location data have gradually risen even prior to recent regulation. Regulations haven’t really affected prices yet, but it’s likely that demand for verified, premium location data will push prices up in the future.
Will regulation affect location data quality?
Yes. To make up for short-term reductions in available location data, many providers are relying on lower quality IP addresses. But longer term, the market will skew toward high-quality data.
WHAT’S IN THIS REPORT? This report looks at how privacy concerns are changing location data marketing by influencing the supply, price and marketer incentives for using location data.
KEY STAT: Only a third of US smartphone users are comfortable with their location data being used for marketing purposes, according to an April 2019 Factual survey conducted by the University of Southern California (USC).
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