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August 25, 2016

If you want to prove the value of your location-based marketing campaign, you need a way to gauge its performance. The right key performance indicators can help marketers sort though all the data to determine success—but what are these magical KPIs? Here are five key KPIs for you to keep in mind during your campaigns.

Click-Through Rate
The oft-used CTR isn't the snazziest of marketing metrics, but it remains relevant for location-based marketing. As MoblieAds explains, many agencies use CTR as a metric to hold other metrics up to—though they can't really stand alone. Trying to attract users on the go means reaching them on mobile devices, and some of the "clicks" you measure may be accidental on those small screens. Moreover, clicks don't necessarily tell you what users will do next. You need other KPIs to paint a fuller picture of your location-based campaign.

Secondary Actions
What users do after they see your ad can better reveal user intent. Actions like clicking-to-call, accessing maps or directions, and viewing business hours show that people are spending time engaging with your location-based ad content. If you're a local business hoping to inspire offline traffic, you'll be looking for high secondary action numbers to indicate offline intent like navigation.

Audience Reach
For Facebook and Instagram, ads aim to raise awareness about a business while targeting a specific buyer profile in a specific location. For example, Atlanta's Hartsfield-Jackson Airport deployed video ads targeted to mobile users within the airport, and served them personalized content based on previous Facebook likes, as Skift reports. A food-lover scrolling through Facebook during a layover might see a headline about a highly reviewed airport eatery. A health nut might get content about an airport salad restaurant. In these cases, secondary actions like mapping for directions aren't very relevant, but understanding the number of people reached is.

Store Visits
Ad platforms are getting better at measuring how location-based ads impact store visits—a good thing for marketers, as the metric shines a light on the customer journey from online to in-store. Facebook recently added store visits to its metrics for advertisers. French retailer E.Leclerc reached 1.5 million people within 10 kilometers (a little over six miles) of its stores with an ad campaign, and about 12 percent of ad clicks resulted in an in-store visit within seven days, Facebook says.

Whereas secondary actions point to user intent, store visits are the real proof that an ad campaign is working to drive foot traffic. A lift in store visits can validate your formula. Zero lift indicates a need to shift strategy.

Coupon Redemption Rate
Coupons are an important component of location-based campaigns because they resonate with users. Just over 50 percent of mobile shoppers say they are likely to use location-based coupons as they shop, MediaPost reports. Given user enthusiasm for coupons, a low redemption rate might indicate that your targeting is off.

≥≥ Need a Shortcut?
1. Location-based campaigns should incorporate analytics to gauge success.
2. KPIs can help give brands insight on whether a campaign is working.
3. Multiple KPIs can help tell the story of campaign effectiveness.
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