Location-based marketing is a wonderful instrument of direct marketing strategy that allows serving advertising content, considering a user’s current or previous location. Meaningful contact is immediately made with the intended customers and marketers, which enhances customer experience. Location-based marketing has multiple names, including geotargeting, hyperlocal advertising, and geofencing.
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An in-depth look into location-based marketing
Firstly, consider the question as to why location-based mobile marketing is the hottest thing in the market right now:
Location-based marketing has taken such a rapid growth curve in advertising revenue for two primary reasons. The modern generation is spending an astronomical amount of time on mobile phones and is constantly browsing mobile apps. This helps you stay in contact with each other and helps the cause of networking. Obvious reasons dictate that advertisers want to target people when their attention and focus points are strong on mobile phones.
Advertising companies analyse audience segments depending on the cookies’ reach. The differentiation feature of cookies is that they don’t offer the same functionality in mobile apps as in web browsing. The evolution of behavioural segments depends on harvesting historical location data, which is then passed on to data analytics for profit augmentation.
A point of history to note here is that the prediction of consumer behaviour has hit the right mark in the last decade due to the increasing efficacy of location-based marketing methods.
Let’s delve into the types of location-based mobile marketing examples.
3 types of location-based mobile marketing examples
Given below are the three location-based mobile marketing examples
- Geofencing
Every mobile user has the option to enable real-time location on the smartphone. This helps in the corrected targeting of advertising content and is known as Geofencing. Depending on individual preference to authorise the app to access the location of the individual, push notifications are sent from the app server via a text message.
This helps in seeking location-based content and advertising methods unique to the mobile carrier’s location. Existing technologies are integrated into the system app so that various notifications are sent to consumers depending on their preferences for ads or content.
Google and Facebook are the pioneers in this form of location-based mobile marketing. Snapchat is the latest entrant, which uses alternate geo-filters to help promote the advertising content depending on the user’s location. Business events hosting or supporting brand names indulge in location-based marketing to ensure maximum traction among users via notification providers. One example is Airship, which helps provide tools for location-based alerts.
Examples
Geomarketers are free to enter the parameters of advertising content based on the device’s proximity to the central server. The main parameter is considered to be the radius of the location and the construction of a virtual fence so that the building footprint is noted perfectly among the cloud servers with real-time data exchange.
More specific examples of such campaigns
- Purchase mobile advertising to ensure the delivery of the desired location proximity to the audience, such as enabling the visibility of the nearest KFC to the system’s current location.
- On approaching the cash register, there would be automatic prompts sent concerning the mobile payment method
- Navigation parameters are stored depending on the functionality of the product-finding app depending on the e-commerce experience of the user interface.
- Geotargeting
This involves the storage of past locations visited by the user. Storing historical data is helpful to marketers as they can build precise campaigns with a higher conversion ratio as the relevant audience would click them. The real-world preference of the audience server is an accurate indicator for analysing location data.
Consider the example of a shopping mall that seeks to increase the number of walk-ins this past Black Friday. To form a workable model of the return visits, the data of the last 90 days is taken and entered into the data analytics platform of the mobile advertising ecosystem. This will lead to greater success for the digital marketing teams as it is coherent with the real-time strategy of enhancing the user base.
The prime usage of geotargeting is done by the automotive dealer, who makes use of a refined approach. The audience should be targeted within a time frame to ensure that the relevancy factor is maintained in the best way possible.
In this case, time is important as the customers involved are in the automotive sector’s last buying cycle phase. The look-back window is shortened as marketers try to channel the customers in the final buying funnel by taking a test range of one week or less.
Examples of geotargeting
- Geotargeting involves the targeting of customers in competitive locations
- Time-specific events are correlated to audience reach, such as conferences, state fairs or even renaissance fairs
- Identification of customers who visited Dunkin Donuts and have not visited for a second time in the last 30 days.
- Online purchases are encouraged by e-commerce companies by finding relevant shoppers
- The retail location of the brand is shown to the audience near the consumer package goods company.
Enhancement of retail traffic by reinforcing location-based promotions
The push message will appear whenever the company offers free stuff near a nearby store limited by a certain radius. This will have the dual advantage of driving traffic and enhancing the probability of having a full shopping cart. This tempts the user in two pivotal ways: Its conciseness is unbeatable and highlights the valuable in-person experience that will increase value in myriad ways.
This location-based mobile marketing example is contingent upon the efficacy of personalization. Users should be enticed with unique personalized messages so that their analysis by the attention span, however brief, might increase profitable transactions.
How is location-based marketing different from Proximity marketing?
The targeting radius is the differentiating factor between proximity and location-based marketing. Huge areas are targeted in geo-fencing, with prime examples being an entire city: Proximity marketing is the best tool to target small areas within the range of 200 feet.
The proximity market is integrated with preciseness and helps business owners to find out the exact location of the user, even in the cases of being indoors. Various proximity marketing tools are NFC, RFID, QR codes, Wi-Fi and Bluetooth beacons.
An excellent example of proximity marketing campaigns is Barneys New York, a department store that sends out personalised offers to users who permit push notifications. Sales are driven to the maximum extent and keep the users engaged in the business area. The unique service and sales recommendation combination has catapulted Barneys to the top of the profitability chain. All this was achieved by making the users feel comfortable and ensuring they were not feeling the experience of seeing ads.
Final Thoughts
Successful location-based marketing services should have a coherent strategy and deploy actively where data plays an important role. Creativity and ad copy are the kingmakers in leveraging this new technology for maximum gains. The right audience should be targeted at the right time.