Location-based advertising is a fantastic tool for marketers in 2022. So, let us take a look at what this technique involves, the benefits of using it, and some top tips for making sure it is being employed effectively.
What is location-based marketing?
There are two main types of location-based advertising - digital and out of home (OOH) advertising.
Digital advertising uses real time location data and consumer behaviour analysis to show relevant ads on smartphones, laptops, webpages, and social media for places, offers, and products nearby that customers are likely to enjoy.
Digital location-based advertising can be split into four categories - geotargeting, geofencing, geo-conquesting, and proximity marketing.
On the other hand, OOH advertising involves putting up physical advertisements in specific locations with a high footfall, or where target customers like to frequent. Examples of this include billboards, motorway ads, bus posters, bus stop adverts, and phone box advertising
Benefits of location-based advertising
● Cost effective
When done correctly, location-based advertising is an affordable way to reach a highly targeted audience.
● Customer insights
Whilst researching the best locations to target your customers, you will be able to gather useful consumer insights, such as their purchasing habits and behaviors. This will further allow you to target your wider marketing campaign more efficiently.
Every consumer is susceptible to impulses - they will see a shop and want to go in and buy something. Location-based advertising encourages impulse purchases, turning this temptation into a sale, and thus increasing conversions.
Once your campaign is live, you can measure how successful it has been in its current locations. This can allow you to make informed decisions as to whether your techniques need to be slightly tweaked to make them more effective.
How to make sure it is effective
Now you know why you should be using location-based advertising, let us take a look at some tips to make sure that your campaign is as effective as possible.
- Make it relevant and personal
Make sure that your ads are relevant to the target audience and the location. For example, street advertising in a shopping centre should be related to products that can be found in the vicinity.
2. Target areas
Do your research on the right areas to target the right customer. Too wide, and you run the risk of it becoming less relevant and more expensive - too small, and you might not get the reach that you require.
3. Think ‘smart’
Nowadays, the majority of our devices are becoming ‘smart’,
working alongside one another to create an interconnected network, or ‘smart home’. Work with smart devices to make sure that customers aren’t getting the same ad over and over again - once it has been shown on one device, it shouldn’t pop up on all the others as this could be perceived as spam.
4. Emphasis data privacy
One of the main concerns associated with any kind of targeted marketing is that you need to collect data to analyse. Many customers can feel concerned about how this data is collected and being stored. Thus, it is essential to emphasise your data privacy protocols and how you adhere to GDPR laws
And there you have it - a little taste of why marketers should use location-based advertising, and how to use this technique as effectively as possible.