Location analytics is the process of gaining insights from the geographical components of business data. This can be done by incorporating a geographical information system (GIS) to provide a visual aspect to the analysis in order to provide insights into the data. For example, consider customer addresses. Many small businesses send marketing materials to their customers’ physical addresses. How many of those businesses have plotted all their customers addresses on a map and performed analyses of those locations? By incorporating location analytics, businesses can learn more about their customers by reviewing the demographics, psychographics and Localgraphics™ of the areas in which they live.
Every business owner should perform a thorough location analysis early in any business location search process. By examining key indicators in an area, location analysis will determine whether a potential location is a good fit for a business. Key location analysis indicators include:
- A breakdown of nearby businesses: direct competitors, influencers and anchor stores
- Access to the location: car and foot traffic, public transit, parking availability
- Market demographics: population, age, income, etc.
- Traffic volumes
- Locating similar markets
- Measuring the size of the market
Once a brick-and-mortar business is established, location analytics can be put to use in finding and serving ads to a business’s target market. Without the use of location analytics, social media and search engine ad platforms usually just make a rough estimate of the location of a local business’s target audience by using a distance radius. In contrast, Spatially Ads and Spatially Connect use spatial behavior analysis, a form of location analysis that uses actual local-travel behavioral data from potential customers. We determine where to aim online advertising for your market to get the most bang from your advertising buck.
Spatially’s technology determines where a business’s most relevant audience lives, works, plays and shops. Instead of making a guesstimate, your business can use our tech to locate clusters of your most-probable customers and then serve your Facebook or Google AdWords ads to them. By applying our location analytics to your online ad campaigns, you reach more of your most relevant audience—the potential customers who already spend time in your Business Area, fit your business’s demographic and psychographic profiles and have an interest in what you sell.