Here’s a fact you probably didn’t know: By 2023, statistics reveal that location-based marketing is expected to constitute around 69% of total ad spend on mobile applications. That’s a large enough percentage to pay attention to. Don’t you think?
We all know the marketing sphere is constantly changing. New ways to reach your audience are expanding and it can be difficult to keep up. Luckily at Via, we are here to keep you up-to-date with the latest updates and information. So, let’s jump into Location-Based Marketing.
In this article, we are going to define what Location-Based Marketing is and provide examples for how you can reach your mobile audience.
Location-based marketing uses the location data of mobile devices to send personalized ads and promotions to people based on their physical whereabouts. It helps businesses reach the right audience at the right place and time, boosting engagement and driving in-store visits or online conversions.
There are many directions you can take with Location-Based Marketing. We will discuss three main categories, below.
Three types of Location-Based Marketing you will probably hear about are Geofencing, Geotargeting, and Geoconquesting.
Geofencing in location-based marketing uses virtual boundaries(fences) to send targeted ads or notifications to mobile devices when people enter or leave specific areas. It helps businesses deliver personalized messages at the right time and place, increasing engagement and driving conversions.
Geotargeting in location-based marketing is the practice of delivering personalized ads or content to individuals based on their geographic location. It helps businesses target specific regions or areas, ensuring that their marketing messages are relevant and resonate with the intended audience.
Geoconquesting in location-based marketing is a tactic where businesses target customers of rival companies by sending them enticing ads or promotions when they are near competitor locations. It's a way to win over customers from competitors by offering them attractive alternatives at the right time and place.
Before we explore examples for how to apply Location-Based Marketing, it is important to remember one important thing: Privacy! Collecting and using location data raises privacy concerns. It's crucial for your business to ensure that they handle and protect customer data responsibly, complying with relevant regulations and obtaining appropriate consent. Veraset has a great article on the laws surrounding this topic. You can check it out, here.
Now, let’s jump in. We will divide these examples by the three types of Location-Marketing.
A retail store sets up a geofence around its physical location and integrates it with their mobile app. When customers enter the geofenced area, they receive a personalized notification welcoming them to the store and offering a time-limited discount on their next purchase. The notification also includes a store map and highlights new arrivals or popular products to encourage exploration and increase the likelihood of a sale.
An amusement park creates a geofence around its entrance and uses it to enhance the visitor experience. When guests enter the geofenced area, they receive a notification with a digital park guide, interactive maps, and real-time wait times for attractions. The notification may also include special offers for nearby food stalls or merchandise shops, increasing the chances of in-park spending and overall enjoyment.
A travel agency runs an online ad campaign promoting beach vacations to users in regions experiencing cold weather. They geotarget specific cities or regions with tailored ads featuring warm beach destinations, showcasing attractive resorts, and offering discounted vacation packages. By reaching out to users when they are most likely seeking an escape from the cold, the travel agency increases the chances of capturing their interest and driving bookings.
An online bookstore utilizes geotargeting to personalize its email marketing. Based on the user's location, they recommend books that are relevant to the local area. For instance, users in New York City might receive recommendations for books about the city's history or novels set in the Big Apple. By tailoring the book recommendations to the user's location, the bookstore enhances engagement and increases the likelihood of book purchases.
A mobile network provider identifies competitor stores and sets up a geoconquesting campaign. Whenever users enter the geofenced areas around these competitor locations, they receive targeted ads highlighting the benefits of switching to the provider's network. The ads may emphasize faster data speeds, better coverage, and exclusive offers such as discounted phone upgrades or lower monthly plans. By targeting users when they are in close proximity to competitors, the mobile network provider aims to sway potential customers and gain a competitive advantage.
A ride-sharing service identifies high-traffic transportation hubs such as airports, train stations, and bus terminals. Using geoconquesting, they launch targeted ad campaigns to users who are within the geofenced areas surrounding these hubs. The ads promote the convenience, reliability, and affordability of their service for transportation to and from these locations. Additionally, they may offer special discounts or promotions for users who book rides from these busy transit points. By targeting users who are likely in need of transportation services, the ride-sharing service increases brand visibility and drives user acquisition.
Location-Based Marketing is a rising trend that offers a competitive edge for your brand. By incorporating geotargeting, geofencing, and geoconquesting into your marketing strategy, you can elevate your outreach efforts. Although not suitable for all brands, it's crucial to acknowledge and consider the potential of this marketing approach.