What’s the Magic Distance for Location-based Advertising? 6 miles
Geo-fenced campaigns are most effective when they target mobile users that are within 6 miles of retail locations, according to a report released last week by Verve Mobile.
The numbers suggest that campaigns that target mobile users within 6 miles of a product retailer have a click through rate (CTR) of over 0.8%. Campaigns targeting those further away have far lower rates. The data are far from perfect as it does not account for population density or the nature of the ad (food vs. clothing vs. cars or whatever) and few campaigns use actual GPS data which the study authors tout as far more accurate than other locating methods.