Effectiveness of Location-based marketing depends upon increasing the frequency of users visiting a particular place like a store or a shopping mall. Location-based marketing is a component of mobile advertising. The main focus of location-based marketing is to convert customers who are online to offline sales.
Location-based marketing is a strategy for engaging with users more effectively. It allows you to access and target the users with the most relevant information based on the time and place they are in.
Online marketing is necessary for offline businesses to attract customers. Additionally, online-only ecommerce stores can establish physical stores so clients can see, feel, and interact with their products in person. In this article, we talk about how location based marketing work and boosts sales Online-to-Offline.
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Different Categories and Examples of Location Targeting Advertising
Geolocation marketing is complex. In order to reach your target group, you need a lot of information. Here are a few practices:
- Hyper-Contextual Targeting – In hyper-contextual and location-targeted ads, data is meaningfully used to provide a compelling experience for the target group. Hyper-local data delivers contextual messages. This method is used to drive purchase intent.
For example – One suburb has seen burglaries recently. Home security installers can run ads depicting burglars breaking into houses. Using the “Tap-to-Call” function, the installer can receive evening calls from a targeted audience within a 5 mile radius. Conversion rates were increased through hyper-contextual and location-based targeting.
- Geotargeting – A location-based mobile advertising format can be considered geotargeting. IP addresses are used to provide real-time location data. You can advertise to a prospective customer based on their IP address if they are nearby a particular geolocation. This method of targeting isn’t very accurate. It’s best to focus on a city, town, or state rather than using IP addresses.
For example – You can remind your target audience, i.e. coffee lovers, that you offer coffee near your cafe when they’re in town. Ads like this can drive them to your store. A hyper-contextual ad should be out an hour or two before office hours start. It is important to understand your target audience’s behaviour, i.e. coffee lovers.
- Place-Based Targeting – Mobile ads using a particular location or time frame are called place-based ads. During a football match, for instance, you might want to target sports-related advertisements in the vicinity of the stadium.
For example – Special giveaways can be offered at movie screenings or football games. You can target your ads when your target audience enters a specific location with technology like iBeacons (a Bluetooth device that communicates with iPhones for location services). You may offer your customers a special code or coupon after they check-in at your game or movie.
- Geofencing – Radius targeting is also known as geofencing. People within a predefined radius of your store are typically targeted with this form of advertising.Real-time conversions can be achieved through this technique. Based on longitude and latitude, geofencing lets you target users. Shopping malls use it to drive foot traffic to their stores.
For example – If you want to drive more traffic to your store, geofencing may be the answer. To attract them to your store, you can use a geofence strategy with 500 metres of area. Consider giving a 10% discount on a time-limited lunch set offer since it’s almost lunch time.
- Geo Conquesting – When your target users are nearby, you can engage them via geo conquesting. A relatively new marketing technique used by financial services, insurance, and telecommunications companies, geo-conquest involves driving competitors’ customers to your business.
For example – America’s biggest coffee chain decided to target consumers who were loyal to other coffee shops or hopped between different breakfast shops day-to-day. During the campaign, competitors’ breakfast customers were targeted. The ad offered a coupon code for $1 coffee and directions to Dunkin Donuts in mobile apps and websites they visited on their phones.
- Beacon Marketing – Using Bluetooth, beacons can receive location data from nearby devices. In places with poor cell reception, it can be used in places with the narrowest coverage area. In proximity marketing, beacons provide a lot of flexibility since they are tiny and can be placed anywhere.
It is necessary for Beacon Marketing to only market to a smaller audience. However, it is more preferable if your customers are nearby your location.
For example – In-store experience can be improved by using beacons, according to Nordstrom. When consumers pass by the store with a beacon installed at its entrance, their beacon-enabled app tells them which items are in stock.
- Behaviour Targeting – Using mobile location and behavioural patterns to target users, this technique uses a user’s geolocation. Cafes, restaurants, etc. can use information about your purchase behaviour to send you relevant ad messages if you are a frequent visitor. It is much more likely that meaningful messages will lead to conversions since they are personalised based on user behaviour.
For example – As a cafe owner, behaviour information about regular customers that visit the coffee shop frequently in that vicinity. These groups can be targeted with attractive discount ads that attract them to your shop over your competitors.
- Augmented Location – Based on their location, marketers can create real time experiences. With this technology, CG images are heavily imposed in the real world. In contrast with virtual reality, where all a user sees are computer-generated images. Augmented reality keeps the focus on the real world and merely adds any extra features. As an augmented reality tool for the workforce, Google Glass has been used everywhere from healthcare to retail to manufacturing.
For example – To provide a real-time gaming experience, the “Pokemon Go” app tracks its user’s location and uses the camera function of the smartphone.
- Proximity Marketing – Information is shared through targeted messages by beacons and Bluetooth. Several interesting developments in this field have been developed by brands such as Apple, iBeacon, etc.
For example – McDonald’s sought to enhance personal relationships with customers as well as promote a new line of coffee-flavoured beverages by leveraging a new proximity marketing strategy via beacons at its 15 cafés in Istanbul.McDonald’s chain utilised a famous Turkish loyalty app named Shopping Genie, to aim at customers who are around the location of a local McD Cafe.
Advantages of Location-Based Advertising
- Cost-effective : You can market to your immediate audience for very cheap or even for free using localised marketing. Businesses get free advertising when they fill out a page about their work with location-based service. Google and other search engines will list you on their SERPs for free if you use location-based marketing and actually understand how it works?
- Get to know your audience better : Using location-based advertising always gives you a better understanding of your target audience. Create campaigns and events to see how people respond in order to determine what you can improve in your services from the products they love.
- Customer loyalty : Businesses can find their loyal customers and reward them for their loyalty through local marketing. When you cater to local visitors in physical stores or when you fulfil online orders, you can send freebies, vouchers, and coupons. They can also be asked to rate and review your brand, improving your overall image.
- Market penetration : You should start small if you want to expand. Strengthen your position in the market by understanding the regional market. As a result, you gain greater credibility and establish yourself as a renowned and trusted brand.
- Brand localisation online : Several search engines list local businesses today to improve the user experience. Ensure that your site data, localization settings, and metadata provides the information that Google needs to rank a brand higher.
How Does Location Based Marketing Work and Increase Sales for O2O
After learning why location-based targeting is necessary, let’s investigate its internal mechanisms. What is the process of location-based advertising? If we want to answer this question, we should examine the most widely used techniques based on slightly different principles. Check out how real world businesses can use ads to attract customers with geo-related mobile marketing campaigns.
- Geofence is used to send offers and messages via push notifications – By using latitude and longitude coordinates, you can define a defined region or a ‘fence’ for effectiveness of location-based marketing. Your messages will reach users within a certain radius around your store. Foot traffic is often generated at shopping malls with it.
- Hyper-Contextual Targeting uses most relevant offers for certain locations – Location-based marketing involves placing mobile ads at specific locations and within a certain timeframe. During peak commuter times, when traffic jams and crowded buses are the most annoying, taxi services could place ads on public transport.
- Weather targeting focuses upon recent or temporary changes – The main focus of weather targeting is changes in the physical environment. Customers’ behaviour and buying habits are heavily influenced by the natural environment, weather.The demand for home deliveries increases during rains and thunderstorms. It also makes sense to market sunglasses to people who live in dry climates rather than raincoats because raincoats don’t make sense in dry climates.
- Geo Conquesting targets customers that are already interested – Engaging your target audience once they approach your competitors’ stores is a more aggressive form of location-based marketing. In an area where people shop, geo conquesting can enhance foot traffic to your store. Customers’ engagement levels and conversion rates can be significantly increased when they receive more attractive offers. It is especially beneficial in industries such as financial services, cafes, restaurants, insurance, and communications.
- Beacon Marketing gathers location data with the help of Bluetooth receivers – In addition to other forms of location-based advertising, this technique is effective when combined with technology. Beacon marketing relies on location data provided by Bluetooth receivers in nearby devices. However, beacons work exceptionally well in areas without a cellular connection, although their targeting area is the smallest. These small and flexible beacons can be placed anywhere and reach customers wherever they are.
There is constant change in the advertising world as channels and formats diversify. In the past, static banner ads were simply used for advertising but have now evolved into a powerful ecosystem with many options.The location-based mobile advertising ecosystem provides a powerful tool for businesses to increase conversions, revenue, build awareness and trust with customers.
In addition to delivering personalised messages to potential customers, location-based marketing also gives your brand an edge over competitors.
Take Advantage of Sekel Tech’s Location Based Marketing for O2O Sales
Businesses can boost sales, traffic, and engagement with the effectiveness of location-based marketing. An effective location-based marketing campaign can increase sales and traffic fast by setting precise consumer parameters and targeting specific geographic areas.
Get started with your own location-targeted marketing strategy with Sekel Tech. You can start connecting with consumers immediately after signing up. A location-based marketing technology is the future of attracting customers of a particular region. Put location-based marketing to work for you and stay ahead of the competition!