All marketing is, technically, “location based.” Advertisers buy their media based on geographic area, audience demographics, reach and frequency. However, when it comes to digital marketing, “location based” takes on a more specific role with geotargeting and geofencing strategies.
The most common location targeting digital strategy is the use of geotargeting display ads. The ability to send relevant ads and offers to consumers at the exact moment they need it is now available! Geotargeting on mobile devices allows marketers to refine targeting by serving ads to people based on not only zip codes, but their IP addresses or device IDs. New technology allows display algorithms to serve ads to potential customers at the precise moment before they make a purchase (micro-moments).
Geofencing is another “location based” marketing strategy. Instead of focusing on a specifically defined audience, geofencing focuses on a certain “fenced off” area. This approach tends to target a broader population, serving ads to anyone who enters the defined area. Geofencing is a way to engage potential customers based on a hyper-local location. Some strategies include geo-fencing a specific brick and mortar store location with relevant offers or even targeting a competitor’s location. Event venues are another potential treasure trove of potential customers.
Coronavirus has obviously changed many marketing strategies over the last several months. Location-based marketing can benefit businesses by ensuring the messaging meshes with state and local health guidelines. Companies should be certain the ads they are serving are highlighting the actual experience customers can expect. As different phases open around the country and different policies are put in place, it’s important that localized advertising reflects what is actually going on in the community. This custom marketing makes a brand more trustworthy in the eyes of potential customers.
Whether a business chooses geotargeting or geofencing, local based advertising provides the opportunity for targeted marketing strategies. Both strategies allow companies the opportunity to speak directly to local consumers and reward their loyalty with promotional offers. Remember, geotargeting focuses on a defined audience within a location and geofencing focuses on a broader population in a specifically defined area. Both options can be tailored to be hyper focused, depending on the business’ particular objectives. Using location based marketing combined with consumer data can help brands connect with consumers at the moments they’re most likely ready to make a purchase.