If you plan on using location-based marketing to help your business grow, you'll want to know about the two geolocation databases out there: the free and the paid data.
While there's nothing inherently wrong with these databases, there are some significant differences between them that will help you decide which one is right for your business.
For example, are free databases like Google Maps good enough, or should you pay for premium access to high-quality geolocation data?
Let's take a look at both types of geolocation databases and some of the key differences between them so that you can make an informed decision about which one is right for your needs.
Accuracy and Precision
The significant advantage of a paid service over a free geolocation database is its accuracy. It offers accurate and precise information from the users' region down to the ZIP code.
99.99% of the information from a paid database is reliable and can be used for any purpose.
The free geolocation database, however, is not always precise and sometimes tends to be inaccurate.
The accuracy of the data is approximately 90% precise at the country level. But it tends to decline at the city level.
Cost
Almost all geolocation database providers offer both free and paid plans.
Naturally, the fact that there is a free option already makes it more attractive and appealing.
Nevertheless, the free services are typically less accurate than the paid alternatives and are not usually reliable when handling complex projects. They are only appropriate if the company wants to be cost-conscious or is developing a small-scale enterprise.
Some companies, however, offer their paid IP geolocation databases in different pricing tiers — making it more affordable.
These companies, like Apiip, offer free tiers that provide accurate data and paid options for as low as $4.79 for their basic paid version, offering more than enough features for most businesses.
Click here to visit the Apiip website.
Restrictions
Free plans are usually restricted to information about the users' country, region, city, latitude, longitude, ZIP code, and time zone.
A paid plan offers accurate data at all levels, a clear limit, predictable uptime, and no restrictions.
It contains advanced information from country, city, longitude and latitude ZIP code, and time zone, down to ISP, weather station, mobile carrier info, usage type, and IAB category.
Convenience
A paid database offers frequent updates to users and makes it easier to obtain support for business applications with unique requirements.
Some paid plans allow businesses to pay for information based on their preference.
For example, if the company only requires country-level accuracy, it would pay less than if they require city-level or postal code-level accuracy.
Companies that require an accurate database but do not necessarily need it to be detailed may prefer this option.
