How to Choose a Location-Based Audience: Scale & Reach - Image

    How to Choose a Location-Based Audience: Scale & Reach

    920 549 Jolene Wiggins

    Scale & Reach

    Marketers want their advertising campaigns to reach as many consumers as possible. Targeting ads to a large audience that is based on real-world consumer behavior helps to ensure that your ad is seen by as many qualified consumers as possible, and to maximize resulting sales. Right?

    Smaller vs. Larger Scale Audience

    Smaller vs. Larger Scale Audience

    Not always.

    The biggest audience is not always the best audience. Let’s assume that we’re planning an ad campaign in support of a new model car, and that we want to reach in-market auto buyers. With 17.5M new car buys in the U.S. in 2016, an audience of 45M or 60M in-market auto buyers should look suspicious. Because location-based audiences reflect actual consumer behavior – rather than inferred behavior – an unreasonably large audience most often indicates poor data quality. The audience may be out-of-date, or assembled using data from a less-precise grid system. Either way, selecting an outsized audience will result in you paying for a lot of impressions that won’t ultimately convert.

    Avoid choosing the largest audience available simply because it’s the largest. Instead, choose the audience that best approximates the actual market size of the opportunity. If you are promoting a new-and-improved video baby monitor to expectant parents, you likely know that 4MM babies are born in the US each year. To reach high-quality prospects, plan to choose an ‘Expectant Parents’ audience in the 3MM-7MM range, and pass on the one that’s 26MM. If you’re a B2B marketer seeking to reach IT professionals, select an audience that is approximately the same size as the 6.7MM U.S. workers with jobs in the tech industry, and skip the larger audience of 45MM.

    On the other hand, if you’re marketing a new coffee drink, a 60MM audience of coffee lovers is completely reasonable in size. So, choose the bigger audience – if and only if – it also makes sense. As a marketer, the success of your geolocation campaign depends on the quality of the underlying audience data. Don’t let an unrealistically large audience compromise your campaign’s performance.

    • Is the audience similar in size to the true market opportunity?

    Next: Recency & Refresh Rates

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