Location-Based Marketing
Mobile devices are here to stay. According to Datareportal, the average consumer will spend almost 4 hours and 29 minutes on mobile each day this year, making it an important chance for marketers to reach their target demographic. However, not every marketer understands how to leverage location-based technologies effectively.
What is Location-Based Marketing?
Location-based marketing uses data from mobile device users’ current or previous locations to display relevant content to them. Location-based marketing is also known as geo-targeted marketing, geolocation marketing, proximity-based marketing, and hyperlocal marketing.
Geofencing or geotargeting is a typical method for using location data. For example, if individuals visit a real estate office, the company could tailor an advertisement to those in the vicinity to encourage them to come in and buy a home or list their property for sale.
What is the Importance of Location-Based Marketing?
It’s difficult to underestimate the power of location-based marketing. According to a Factual survey, 9 out of 10 marketers said location-based advertising increased sales.
Not only does location-based marketing technology help marketers earn more business, but it also improves customer relationships. Marketers who use location-based advertising into their marketing plan have a greater understanding of their customers’ needs, allowing them to meet those needs while increasing customer engagement.
Why Use Location-Based Marketing?
When you look at location-based marketing statistics, the case for adopting location technology in marketing becomes evident. According to estimates, by 2024, more than 94% of Canadian millennials will own cellphones.
According to datareportal, daily mobile device usage reached 3 hours and 54 minutes in 2021, while TV usage only reached 3 hours and 22 minutes in the same year, indicating a growing gap between TV and mobile time.
It makes little sense for marketers to put all of their efforts on a platform with dwindling reach. If you want to capture clients’ attention, you must market where they are looking. That is why employing location-based advertising to target mobile device users is an effective marketing technique.
What are the Key Types of Location-Based Marketing?
There are five major sorts of location-based marketing strategies you can employ to reach your target demographic.
- IP Address Marketing
One of the simplest methods to get started is through IP address marketing. Every computer or device connected to the Internet is assigned an IP (internet protocol) address. IP address marketing allows you to leverage location information to tailor your marketing.
- GPS Marketing
Then there is GPS marketing. Almost every current mobile gadget employs GPS positioning technology. This calculates location based on distance from a network of global positioning satellites. GPS marketing allows you to target advertising based on location information.
- Geofencing Marketing
Geofencing marketing, which is slightly more involved, entails creating a virtual location or radius in order to market to people in that area. In addition, proximity marketing allows you to target consumers within a geofence you’ve previously set up for your advertising campaign.
- Beacon Advertising
Beacon marketing, also known as beacon advertising, allows you to utilize physical devices called “beacons” on a business’s premises to transmit marketing activities to those within range of the beacon.
- Blueprints: Location-Based Marketing
Finally, Blueprints offers location-based marketing. This is one of the most advanced types of geolocation marketing, and it is a Maple Clicks specialization. Blueprints define the geographical borders surrounding points of interest and locations. When paired with location and activity data, this technology enables advertisers to fine-tune audience targeting to get even greater outcomes.
How to Use Location-Based-Marketing?
Now that you understand the different varieties, you’re probably asking how to employ location-based marketing. Here are some location marketing examples to help you get started.
Proximity targeting allows you to reach your preferred clients in real time at or near previously geofenced places. For example, in real estate marketing, you could target leasing offices to attract the attention of potential renters.
Weather targeting allows you to target adverts and marketing campaigns based on current or upcoming weather conditions. It’s similar to your local cafe placing out umbrellas outside when a rainstorm is approaching, as it provides cover from the rain, resulting in increased sales.
Geo-conquesting is the process of exploiting location data to win business from competitors. Simply utilize location-based marketing to reach people near your competitors’ locations and urge them to visit the places you want them to.
You can market to people based on their geography, online and offline activity, demographics, and hobbies, among other factors.
You can also mix several location technologies to promote in-store traffic and brand recognition.
Who Uses Location-Based Marketing?
Are you wondering whether you should employ location-based marketing? The truth is that every business with a physical presence trying to increase in-store traffic can benefit from location-based marketing. If you own a cafe on a sweltering summer day, advertising vouchers for ice-cold drinks is likely to attract more customers.
Location-based marketing is also quite efficient in event marketing. How is this so? Assume you are holding a popular music event. Before a major show begins, you may use location-based marketing to send a discount promotion to folks near the venue, thereby increasing crowd numbers. You can also use crowd data to notify attendees about upcoming festivals.
Location-based marketing is also an excellent approach to consolidate all of your customer data and encourage desired consumer behavior. For example, you may display adverts for running shoes to target runners passing by your store.