Understanding Location-Based Marketing

Understanding Location-Based Marketing

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It wasn’t too long ago that digital marketing was a rather new concept that businesses were just beginning to utilise. As time has gone on, the digital world has advanced to a point where businesses that do not make their presence known will have a difficult time competing against competitors within their industry.

While internet marketing initially focused solely on ranking in search engines and generating a following on budding social media networks, it now has the ability to help businesses market their brand locally. Location based marketing is taking over as the next big step in the marketing sphere.

location-based mobile campaigns

In order to ensure that you are able to utilise it correctly, here is a deeper look into exactly what location-based marketing is and how you can use it to grow revenue for your business.

Desktops and Mobile Devices Generating Location Information

In recent times, web and mobile development have focused on putting together processes that allow desktops and mobile devices to generate location information. This information is then used to enable marketers to focus on targeting consumers who are located in close proximity to the actual business.

location-based mobile campaigns

This increase in capability has allowed marketers to target a higher percentage of consumers who are a part of a business’ target market, which is essential for high ROI marketing.

Location-Based Campaigns

With the location information that is generated from consumers, marketers are able to set up location-based mobile campaigns that focus on consumers whose habits align with the identified target market. These campaigns utilise a geofence that ensures that the only users who are targeted are within a specific area.


Positive Results

Even in the early stages of location-based marketing campaigns, success is being seen at very high levels. In many cases, businesses are seeing response rates that are as much as 40%-50% higher than what they would have received from a similar campaign that covered a broad area.

Since these campaigns are able to target consumers where they are and while they are in close proximity to the businesses targeting them, they see these ads as useful and less intrusive than typical ads. If you are picking your kid up from school, for example, and see an ad for the McDonald’s restaurant that is on the way home, it suddenly becomes a good idea for dinner.

location-based mobile campaigns

The Future

In the future, as more data is being generated about consumers, you can expect to see location based marketing improve and expand. It has the potential to truly change the way that digital marketing is handled, and can be especially useful on mobile devices.

Many social networks such as Facebook have made use of these campaigns and ads as a way to increase revenue. With the high response rates and increased engagement that marketers are seeing, there is little doubt that it will only continue to become more and more useful in the future.

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