Location-based marketing is a marketing strategy for alerting mobile device users about local business offers based on their location. It is relatively cost-effective and has been most effective at increasing in-store traffic and brand awareness.
In a world where instant gratification is increasingly valued, location-based marketing should be understood by all marketers. Just by analyzing a consumer’s physical location, businesses can target them on a more personal, granular level. A location-based marketing strategy helps marketing teams reach their target customers. Additionally, it supports the buyer’s journey from discovery to purchase, as well as engagement and retention.
We’ll cover the basics of location-based marketing, its benefits of location-based marketing, types of location-based marketing, and trends in this article, along with examples of how brands use it to enhance marketing strategies.
What is Location-Based Marketing
In location-based marketing, users are targeted with relevant and timely content and services based on their location in the past and present using a variety of marketing techniques, such as push notifications. Marketers use geolocation data to optimize marketing tactics based on consumers’ locations by using a mobile phone or any wireless electronic device. Whether consumers are online or offline, location-based marketing allows organizations to target consumers based on their physical location on a granular, person-based basis. Using location data, marketing teams can target consumers based on factors such as proximity to a store, local events, etc.
Types of Location-Based Marketing
The growth of connected devices has largely enabled location-based marketing over the past few years. It seems that everything has been connected to the internet, whether it is phones, cars, watches, or anything else. These devices are often tracking their owners’ location, so location and spatial data are abundant. Using this data, marketing teams can gain a deeper understanding of how to reach customers and improve their experience.
Here are some types of location-based marketing:
- Geofencing Marketing – As part of location-based marketing, geofencing marketing creates a virtual boundary around a predefined location using the Global Positioning System (GPS). Geofencing, location targeting, or Geotargeting is a virtual boundary that can be entered or left by a smartphone. The use of GPS marketing can also be applied to location-based marketing. By registering addresses into search engines, businesses can attract customers to their nearby locations. GPS-enabled devices, especially smartphones, are typically used in this type of location-based marketing.
When target audiences enter a geofenced region, they become an active target of the marketing strategy, as they will be able to receive content, offers, or some other form of messaging from the brand. Geofencing is the creation of a boundary within a specific region. For example, a boundary would encompass a popular shopping center where the company has a store. Using geofencing, marketers can divert consumers away from competing products by using real-time location data.
- Beacon Marketing – Businesses use beacon marketing as a form of proximity marketing to engage and interact with consumers at strategic locations. This communication is triggered by a tiny device known as a Bluetooth beacon. Bluetooth or WiFi beacons are used primarily to target existing customers within a small geographical area by transmitting location-triggered rich notifications to smartphones nearby. Users can be tracked indoors more precisely, which allows marketers to target customers more specifically and get a deeper understanding of their behavior.
By using proximity marketing, businesses can connect directly with their customers via mobile devices using several location technologies. Proximity marketing distributes advertising content associated with a specific location. Businesses will send local promotions to consumers using Bluetooth-enabled devices or mobile apps in that area.
- Geotargeting – It is a type of advertising that uses location data to reach consumers with messages suited to their locality and behavior and uses location data to reach them. With this advertising technology, consumers’ location is automatically or assumed to be known. Using geotargeting, a user’s location is determined, and then personalized messages are displayed according to their location. A consumer may receive push notifications or messages in the app based on their region or proximity to a store if they have opted in to allow an app to access their location. Among the key benefits of location-based marketing of geotargeting is that it enables marketers to target users based on their location, such as weather or local news and events, to personalize customer experiences.
It works by using IP addresses to identify connected devices. IP addresses can then be matched to countries, zip codes, etc. To determine where users are located. Using IP addresses, online advertisers market to household and business devices. IP addresses can be used to display relevant advertisements on websites that users tend to visit by matching up IP addresses with lists of names and street addresses.
- Geo-Conquesting – In geo-conquesting, customers are diverted from the competition through location data. For example, car dealerships might construct a boundary around the lot of a competitor. Users will receive offers encouraging them to visit the other dealer when they reach that boundary. By targeting users who are already shopping for a product in the space, companies can win market share and gain new customers by encouraging them to purchase from them rather than a competitor.
Burger King is a common example of this. The Burger King app was used to divert McDonald’s customers to their restaurants using geo-conquesting. Consumers were urged to download the Burger King app in exchange for a 1-cent whopper. In the vicinity of McDonald’s, the Burger King app sent customers a 1-cent whopper promotion and directed them to their nearest location.
Benefits of Location-Based Marketing in 2022
Location-based marketing helps your business to grow in many ways. Here are a few benefits of location-based marketing.
- Enhance Revenue with Relevant and Personalized Marketing – The use of location-based marketing can be a game-changer for businesses because 40% of customers find messages they receive from businesses to be irrelevant and unhelpful. By using location data collected from customers, marketing efforts can be amplified by ensuring only relevant information is sent to them. Location-based marketing in e-commerce is best known through Google Local Inventory Ads, but there are other options as well. For example, a customer visits a cafe and receives an exciting offer. The cafe owner can also create dynamic QR Codes with an online QR Code generator in seconds if they want to credit an extra discount, such as 15% off later after scanning. Offers that are relevant, timely, and offer an incentive are much more likely to be considered by customers. When these two features are included in your location-based marketing campaigns, you can increase sales for your business.
- Connect Better with Your Audience – The benefit of location-based targeting is that you can engage people who are interested in your product or service. By getting your message to the right people at the right time, you can avoid spending money convincing people to purchase your product. As a result, the ROI will be higher. The idea of location-based marketing can benefit marketers by allowing them to better connect with their audience. Businesses can use the established locations of where their audience is to better serve their customers and build stronger business relationships.
- The Search Engine Rankings will Improve – In digital marketing, the number one goal is to have your business ranked highly on search engines. Businesses benefit from this because when people are on the go, they tend to find the first businesses that have access to their location data. This is why it improves search engine rankings, especially for marketers who invest in location-based marketing
- Ensure More Relevant Ads are Delivered – Location data can be used by marketers to create more relevant, personalized ads. This is not limited to where a person is physically located. It can also be used for timing and messaging. An analysis may reveal that a consumer is more likely to engage with an ad while on the train or commuting, which can help marketers decide when to serve an ad. The location of the advertisement can also influence copy and creativity. Marketing teams may choose to use images of the city where the target consumer lives rather than generic images. Relevance and context have become essential components of messaging that are engaging, rather than ignored. Utilizing these real-time insights ensures that these criteria are met.
- Engage your Audience and Increase Immediate Foot Traffic – In addition to increasing engagement. Advertising will become easier with segmentation and location targeting. Consumers will also become more aware of brands with segmentation and location targeting. By informing users in their market of proximity and enticing them with an offer, location-based marketing can drive foot traffic for local businesses such as retail stores or food services.
Location-Based Marketing Examples
GROHE Increase Foot Traffic with Location-based Marketing – A push message may appear for app users within a certain radius of a nearby GROHE store. Ex. Buy the best product at the best prices, especially from a store like GROHE. In addition to being concise, this offer emphasizes multiple ways an in-person experience adds value. By offering this incentive, the store hopes not only to drive in-store traffic but also to fill shopping carts.
Highlight the convenience and offer of an in-store visit in a compelling, engaging manner to demonstrate the added value of an in-store visit.
COLIVE Last-minute Upsells – COLIVE’s example below does two things well: it acknowledges an immediate need for its service and it reminds customers that hesitating could lead to price increases. COLIVE engages app users with custom offers and messaging based on the fact that no one likes to pay more than necessary.
COLIVE responds immediately to user needs. COLIVE ensures users have all the information they need to make an informed decision, including relevant, urgent, and location-based information.
VLCC Steers Users in the Right Direction – Through location intelligence, VLCC brands connect with local foot traffic and encourage crowds to navigate directly to a store. Through a data exchange approach, VLCC provides value to its users. As a result, VLCC reveals stores with better deals nearby. In geofencing, VLCC steers people to the right place at the right time, based on their location.
VLCC provides its customers with a valuable exchange and makes good use of location-based data. VLCC identifies the real-time needs of your customers and provides them with relevant solutions that save them time and money.
Haldiram’s Builds Momentum through Online and Offline Interactions – Haldiram’s is a great example of a brand bridging offline and online moments. In India, Haldiram’s is the place to go for festive sweets and snacks. However, festivals should be celebrated with friends and family to create lasting memories. Every festival or event was started or enjoyed with sweets among Indian people. Haldiram’s is a good choice in this situation. It reminds them of their festival experience (online & offline) by providing them with valuable online information. Haldiram provides sweets and snacks to users online and offline.
The key takeaway is to identify ways in which online and offline experiences can be connected. Remind users of the importance of both past and present moments.
Kalyan Jewellers is a Popular Example of Geotargeting – Among the most popular examples of geotargeting are Kalyan Jeweller’s Google search results. if a user searches “Jewellery shops in Hadapsar Pune,” Google will return information on Jewellery shops in the Hadapsar area based on the IP address of the device conducting the search.
Location-Based Marketing Trends for 2022
- Proximity Marketing / Beacon Technology – In order to share information with users’ phones, beacon technology uses Bluetooth technology. Marketers are increasingly leveraging beacons for location-based marketing – specifically proximity marketing. Users within a very small range can receive highly-targeted messages through proximity marketing. With iBeacon and Eddystone-EID, Apple and Google have made significant advances in beacon technology.
- Hyperlocal Marketing – The use of hyperlocal marketing tactics involves leveraging location data and time-sensitive insights to engage customers. Marketing can be targeted at a smaller number of consumers in a certain town, or even on a specific block. In this way, campaigns can be customized and measured more easily. Furthermore, hyperlocal campaigns are easier to customize to niche audiences than large, national campaigns today, as personalization plays such an important role in marketing. Hyperlocal marketing was a staple before mass commutations. Using the internet and television, marketers could spread their messages beyond their immediate surroundings. Incorporating new digital advances into this strategy has led marketing teams to revert to this strategy.
- Future Excited – Overall, marketing is known for its ability to adapt to new technologies. Marketing strategies are increasingly using immersive VR experiences to engage with target audiences. With virtual reality becoming more intertwined with our everyday lives, it seems like more businesses are going to implement augmented reality and virtual reality. This helps to make campaigns more engaging. One example is Ikea Palace, Ikea’s AR furniture mockup app. Virtual reality marketing has revolutionized marketing at Ikea Palace, which lets users test furniture, cuddle simulated pandas, and have virtual pillow fights with virtual pets.
- AI-Driven Marketing – By using artificial intelligence, marketing companies can make automated decisions based on analysis of data and additional observations of audience or economic patterns that may impact their marketing efforts. Computer algorithms can solve problems and create efficiencies that are especially valuable to marketers. Using this method, advertisers can develop real-time ads and report on complex analytics.
- Augmented Analytics – Measurement of historical data and campaign performance is a fundamental element of any digital marketing campaign. The process assists in establishing key performance indicators (KPIs) and executing against them. With enhanced analytics, machine learning algorithms (ML) are used to analyze raw, unstructured data at a rate that is unmatched by humans. Marketing experts can make actionable inferences based on current trends, past transactional patterns, and business KPIs. As a result of this “speed to insights” strategy, brands are able to pivot when required.
The goal of location-based marketing is to increase sales revenue and brand awareness for organizations. Companies can organize promotional events based on regions or neighborhoods in order to get to know their customers better. Thus, targeting the right demographic is crucial for companies. Companies can reach out to consumers on a personal level by promoting locally. Companies have gained an advantage through this strategy by reaching a large audience and providing positive user experiences.
Take Advantage of Sekel Tech’s Location-Based Marketing
Marketing is changing constantly due to the diversity of channels and formats. In the past, static banner ads were the only option available for businesses, but now many options work wonders for many companies.
Sekel Tech’s location-based marketing is an effective tool within this ecosystem for building awareness and trust with customers, as well as increasing conversions and revenues. You can not only deliver personalized messages to your potential customers, but you can also create effective location-based marketing campaigns to compete with your competitors. By bringing customers to your store physically, Sekel Tech’s platform helps you turn impulses into sales.
With Sekel Tech’s location-based marketing platform, you can listen to your customers, and interact with them across all channels: email, social, web, and mobile. It automates and manages every campaign, publishes content, analyzes results, and optimizes as you go.