What Is Location Based Marketing in 2024: A Complete Guide

Editor’s Note: This post was originally published in June 2023 and was updated in Jan 2024 for accuracy and comprehensiveness.

What Is Location Based Marketing? Location based marketing refers to a marketing approach that capitalises on the geographical information provided by a mobile device to offer push notifications or services to customers. Read this blog to understand LBM better.

In today's digital era, businesses are constantly exploring innovative ways to connect with their target audience. One such powerful approach is location-based marketing, which leverages user location data to deliver personalised messages and promotions. As we approach 2023, with mobile devices playing a crucial role in shopping and entertainment, the importance of location based marketing continues to grow.

Watch this YouTube video to get started with Location based marketing!
 

What Is Location Based Marketing

Location-based marketing (LBM) refers to a marketing approach that capitalizes on the geographical information provided by a mobile device to offer pertinent content or services to the individual. This technique employs various channels such as push notifications, in-app messages, and geo-targeted advertisements to engage with the user based on their current location.

Benefits of Location Based Marketing

The following are the benefits of location based marketing:

 

1. Enhanced Targeting

This ensures that marketing efforts are highly targeted and increase the chances of reaching the right audience. Through location-based marketing, businesses have the ability to tailor their marketing efforts to target customers based on their geographical location. By harnessing the power of geolocation data, businesses can effectively deliver personalized and highly relevant content, offers, and promotions to customers within specific areas. This strategic approach ensures that marketing messages are timely and tailored to the needs and preferences of customers in different locations.

2. Improved Customer Experience

Location-based marketing enables businesses to provide a more personalized and seamless customer experience. By delivering location-specific information, such as store directions, nearby promotions, or local events, businesses can assist customers in finding what they need quickly and easily. This enhances customer satisfaction and fosters loyalty.

3. Valuable Data Insights

Location-based marketing generates valuable data insights that businesses can leverage for decision-making and optimization. Businesses can obtain insights into customer behaviours, preferences, and shopping patterns by examining location data. This data can be utilized to fine-tune marketing campaigns, enhance product offers, and make sound business decisions.

Types of Location Based Marketing for Your Business

The following are the few types of location based marketing for your business:

1. Geofencing

Geofencing is a marketing tactic that targets customers depending on their location by using virtual borders. A company, for example, may set up a geofence around its actual location to deliver push alerts to people who enter the area.

2. Geotargeting

Geotargeting is a marketing tactic that targets users with adverts depending on their location by using their IP address. For example, a company could target consumers in a specific city or state with advertisements for its products or services.

3. Proximity Marketing

Bluetooth technology is used in proximity marketing to target consumers with adverts based on their proximity to a physical site. A firm, for example, could utilize proximity marketing to deliver push alerts to people who are within a particular radius of their store.

4. Beacon Marketing

Beacons are small Bluetooth-enabled devices that can be deployed in a variety of establishments and public locations. When a user’s mobile device comes within range of a beacon, the beacon can send notifications to the user.

5. Wi-Fi Marketing

Wi-Fi marketing is a marketing method that targets users with advertising depending on their location using Wi-Fi data. A company, for example, may utilize Wi-Fi marketing to deliver push alerts to consumers who are connected to the company’s Wi-Fi network.
 

Location Based Marketing in Other Industries

1. Retail

Stores can use location-based marketing to offer customized incentives to customers nearby. For example, a retailer can send messages to nearby customers giving discounts on specific products.

2. Restaurants

Nearby restaurants can send customers targeted coupons. Customers in the area, for example, could be given a free appetiser with the purchase of an entrée.

3. CPG

Consumer packaged goods companies can target customers in close proximity to stores that sell their products. They can improve their marketing efforts and promote consumer engagement by sending notifications to customers within a particular radius.

4. Entertainment

Companies in the entertainment industry can leverage location-based marketing to attract customers in close proximity to their venues. For instance, a movie theatre can send personalized messages to nearby customers, providing discounts on tickets for specific movie showings.

5. Travel

Travel companies have the opportunity to target customers located near airports or popular travel destinations. By delivering notifications to customers within a specific radius, they can enhance customer engagement and offer discounts on flights to specific regions.

6. Real Estate

Real estate agents can utilize location-based marketing to provide tailored property listings to customers interested in buying or selling homes within a specific area. By leveraging location data, they can offer personalized recommendations to match the customer’s preferences and needs.

7. Healthcare

Patients can receive location-based reminders, health suggestions, and relevant information from healthcare providers.

8. Education

Schools can employ location-based marketing to send event reminders, provide resources to parents and students, and deliver information particular to their region.

9. Government

Governments can issue emergency alerts, communicate service information, and encourage civic engagement based on the geographical location of the recipients.

 

To step up your game with innovative location based marketing strategies, watch the below video by Sekel Tech.

Location-based marketing Examples

1. Starbucks

Starbucks uses location-based marketing to send targeted offers to customers who are near their stores. Starbucks, for example, may send a push notice to consumers who are within a specific distance of a location giving a free coffee with the purchase of a pastry.

2. Nike

Nike employs location-based marketing to provide targeted advertisements to clients near training trails or gyms. Nike, for example, may send a push notice to clients within a particular distance of a running trail giving a discount on running shoes.

3. Disney

Disney uses location-based marketing to provide customized offers to customers who live near Disney parks. For instance, Disney may send push notifications to clients within a certain radius of a Disney park offering a discount on park tickets.

4. Walmart

Walmart uses location-based marketing to provide personalized coupons to customers who live near Walmart stores. For example, Walmart may send a push notification to consumers who are within a certain distance of a Walmart store offering a grocery discount.

5. Target

Target utilizes location-based marketing to deliver targeted advertisements to customers near Target stores. As part of this strategy, Target may send a push notification to consumers who are within a certain distance of a Target store, offering a discount on baby supplies. This example of location-based marketing showcases how businesses can leverage user location data to provide personalized and relevant promotions. Learn more about what is location based marketing and its effectiveness in reaching nearby customers as you continue reading this article more.

6. Nordstrom

Customers in close proximity to Nordstrom locations receive push notifications via location-based marketing. Notifications may contain information about new products, sales, or upcoming events.

7. Sephora

Customers who are close to Sephora stores receive push notifications via location-based marketing. Notifications may contain information about new products, specials, or upcoming events.

8. Kroger

Kroger uses location-based marketing to send push notifications to customers who are near one of their stores. These notifications can include offers for discounts on groceries, information about sales, or reminders about upcoming events.

Here are certain Location based marketing examples explaining how certain brands used location data to boost their marketing strategies.
 

Is Location Based Marketing a Good Fit for You

Several factors influence whether location-based marketing is a suitable fit for your company. First, analyse the nature of your firm and whether geography influences your clients’ purchasing decisions. If your company operates primarily in a physical location, such as a retail store or restaurant, or if you have a local or regional target audience, location-based marketing can be extremely efficient in reaching and engaging your target audience.

Furthermore, if you have the ability to gather and use location data, such as through a mobile app or website, you may use it to provide customized and relevant marketing messages to customers in certain areas. Finally, think about your resources and budget when it comes to implementing location-based marketing techniques, as it may necessitate investments in technology, data analysis, and continuous campaign administration. Overall, assessing your company’s specific goals, target audience, and available resources will help you determine whether location-based marketing is a good fit.

 

Is Location Based Marketing Private & Safe

Privacy and safety concerns are raised by location-based marketing. When using location-based marketing techniques, firms must prioritise consumer data protection and security. Businesses that collect location data must follow strict data protection standards and gain proper authorization from customers. Businesses can protect location data from unauthorised access by employing strong security measures such as encryption and secure data storage.

Transparency in how location data is acquired, handled, and shared is critical for establishing customer confidence. Businesses should avoid potential privacy issues and provide a safe environment for location-based marketing campaigns by implementing privacy-focused practices and guaranteeing data protection.

 

Frequently Asked Questions (FAQs)

1. How does Location-Based Marketing Work?

Location-based marketing uses a variety of technologies, including GPS, Wi-Fi, and cell tower signals, to establish a user’s location. Businesses can send users targeted messaging once their location is known.

2. What are the Drawbacks of Location-Based Marketing?

There are some disadvantages to location-based marketing, which include:

- Concerns regarding privacy

When it comes to location-based marketing, some people may be concerned about their privacy.

- Cost

Location-based marketing can be costly, especially if you want to reach a huge number of people.

The effectiveness of location-based marketing varies depending on the sector and target demographic.

3. How Can Businesses Collect Location Data for Location-Based Marketing?

Businesses can collect location data through various methods. This can include GPS data from mobile devices, Wi-Fi signals, check-ins on social media platforms, or beacon technology placed in physical locations. Mobile apps or websites with location permissions can also provide valuable location data.

4. Can Location-Based Marketing be Used in Online Advertising?

Yes, location-based marketing is applicable to online advertising. Businesses can send customized adverts to individuals based on their location by utilizing users’ IP addresses or geolocation data from their devices. This allows for localized advertising campaigns and reaching specific target markets.

5. Are There Any Challenges Associated With Location-Based Marketing?

Location-based marketing does come with some challenges. Accuracy of location data, ensuring proper consent and privacy compliance, managing data security, and striking the right balance between personalized content and respecting user privacy are some of the challenges that businesses may face. It’s important to address these challenges through best practices and robust systems.

Take Advantage of Sekel Tech’s Location Based Marketing

Discover how Sekel Tech’s location-based marketing solutions can revolutionize your business. Learn what is location based marketing and how it offers a powerful and personalized marketing approach. With Sekel Tech’s expertise in leveraging location data, businesses can effectively target their local audience, drive footfall to physical stores, and enhance customer engagement. Unlock the potential of location-based marketing by utilizing Sekel Tech’s tools to deliver targeted offers, promotions, and notifications based on real-time proximity. Elevate customer experiences, increase satisfaction, and boost conversions with Sekel Tech’s comprehensive suite of location-based marketing services. Harness the power of location data to optimize your marketing efforts and achieve business growth.

To understand Location based marketing and its terminology better, you can read this article here written by Airship by clicking on the following link.