Locations Sciences Group PLC (LON:LSAI) shares jumped on Wednesday following news the firm is now working with the UK’s largest independent media agency to verify the accuracy and quality of its location-based advertising campaigns.
the7stars, which runs campaigns for huge global brands such as Papa Johns and Nintendo, has already enjoyed “excellent results” from using Verify – Location Sciences’ location verification product.
Simply put, Verify helps advertisers to make sure their campaigns are targeting the people and areas that they are supposed to be.
the7stars used the product in a recent ad campaign for Deliveroo to analyse the effectiveness of its proximity-targeted advertising.
This run showed that just 20% of campaign impressions were delivered to the correct locations. By removing the ‘bad actors’ identified by Verify, the7stars was able to increase accuracy to almost 90%.
Going forward, agency bosses are confident of achieving a benchmark of around 80% within a few days of launching campaigns.
“When location data is accurate, it is immensely powerful for agencies and their brands, and the7stars' clients can rest assured that their advertising budgets are being spent effectively,” said chief executive Mark Slade. “Increasing correctly targeted campaign impressions from 20% to 90% is significant and demonstrates huge value for the agency and its clients.”
the7stars founder and chief executive, Jenny Biggam, added: “We believe there is a missing standard and location verification should be added for all digital buys.”
In afternoon trading, shares in Location Sciences soared 19.3% higher to 3.40p.
In a note to clients, analysts at ‘house’ broker Shore Capital commented: “Following the £2.95mln fundraising in November 2018, Verify was launched in the USA and is beginning to gain traction as evidenced by yesterday’s partnership with SITO Mobile.
"A new product, Verify Supply, an extension of the existing verification products, could provide a further revenue stream. We are forecasting strong increases in sales, most of which should be recurring, so are higher-quality in our view.”
-- Adds analyst comment, updates share price --