location-based ads

Google announced yesterday the initial roll out of a new “store visits” metric for AdWords. Essentially, it is an attempt to trace conversion from an ad click to an actual store visit. According to Google:

With the holiday season upon us, it’s clear that the majority of sales for many industries still happen in person – in fact, roughly 95% of retail sales take place in physical stores.1 And online activities are influencing offline transactions more than ever, bringing together the digital and physical worlds. Thirty-two percent of consumers say that location-based search ads have led them to visit a store or make a purchase, so it’s more important than ever for businesses to understand the impact that search ads have in driving visits to your physical locations, whether that’s a store, hotel, auto dealership or restaurant.

The implementation, however, leaves something to be desired. Google will establish location by conventional means, e.g. geo-fencing and Wi-Fi, and which can have an error rate of over 500 meters!

This means the store visit metric will only work for certain kinds of retailers. It won’t work for stores in dense areas or in shopping malls. It’ll only work for a Costco-like mega store that’s in the middle of nowhere by itself.

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