Why Microsoft Is Wrapping Location-Based Ads Around Retail Stores

Tests significantly lifted foot traffic

Microsoft plans to open five stores this month to get to its 100th North American location since getting into retail game a few years ago. The tech brand has dramatically grown its merchant presence, adding 50 shops in the last several months. 

And the Redmond, Wash.-based company will lean on location-based mobile advertising to drive traffic into its new stores after diligently testing the strategy. In the last three months of 2013, its marketers set 10-mile geofences around 75 Microsoft stores and developed different sets of creative in order to contextually target consumers.

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