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7 Things You Need to Know About Geolocation Marketing

geolocation marketing

A good marketing strategy involves changing with the times. Nowadays, that means harnessing technology and being on as many social media platforms as possible.

However, while that used to just mean creating killer ads on Facebook and Twitter, online advertising has now begun to harness an all-too-familiar aspect of technology: location.

If you’re looking to grow your business and increase brand visibility, keep reading to learn everything you need to know about geolocation marketing.

What Is Geolocation Marketing?

Geolocation marketing uses location-based services (LBS) to gather data about people that are close enough to a business to be potential customers. It uses a device’s geo-data to send them entertainment, useful information, and security.

For instance, Uber and LYFT use the location tagging in Snapchat to promote any drivers who are nearby.

Who Uses It?

Geolocation marketing is best used for retail stores and businesses that have permanent locations. Through GPS and beacon technology, these businesses can send information and promotions to qualified devices that are nearby.

However, this new form of marketing doesn’t affect those that have brick and mortar locations. It’s just as important, if not more important, for mobile businesses. Brands can take advantage of locations where people congregate like malls, crowded venues, and airports.

7 Things You Need to Know

There are many different aspects of geolocation marketing. You might think it’s more efficient to only focus on one, but companies who are successful are those who use a combination of any or all of these options.

Go through our list and decide which ones would work best for promoting your brand and increasing visibility.

1. Location-Based Advertising vs Promotion

Location-based advertising and location-based promotions are both subdomains of location-based marketing. However, they’re each used for different reasons.

Location-based advertising is used to promote a company’s brand and general image. It’s best used by retail companies who have permanent locations. On the other hand, location-based promotions are used temporarily by companies to promote sales or one-time events.

These are used mostly at large venues, festivals, and other crowded places.

2. Geofencing

Geofencing means building a virtual fence around your business and advertising to any device that enters that radius. It’s useful for companies who want to advertise to areas that are 50,000 meters or less.

While this method is useful, it can sometimes be inaccurate. After all, just because someone is near your business, that doesn’t mean they are qualified as a potential customer. Geofencing should be combined with other advertising methods in order to find prospects worth targeting.

For specific details on geofencing, read more here.

3. Geo-Targeting

Geo-targeting is similar to geofencing and radius targeting, except that it targets devices based on their qualifications rather than their general location. This allows the business to focus more on people that they know they can turn into return customers rather than those who are likely to not be interested at all.

For instance, if a device nearby reads as a seventeen-year-old female with numerous purchases at Starbucks and Claire’s, the local eye clinic won’t send it its promotion for discounted bifocals.

4. Radius Targeting

Radius targeting allows you to market to certain people within a specific radius. Unlike geofencing, it is more finite and intended to target only those around one specific building or locations and not an entire area. That way, you can set parameters and not flood everyone’s phones with unwanted ads.

This method can be used by businesses such as a hotel near an airport. People with long layovers are more likely to seek out cheap hotels for vacancies.

5. Proximity Marketing

Proximity marketing is similar to geofencing. Only the radius you’re using is much smaller, from ten to three-hundred meters. This can be achieved with technologies such as NCF, QR, RFID, and Bluetooth beacons.

Each option has its own pros and cons. However, Bluetooth is the most popular and flexible choice for smaller businesses.

6. Geo-Conquesting

Geo-conquesting is a very effective way to target the customers of your competitors and increase brand visibility. It’s best used by smaller businesses that may be positioned near a business with much more funding and visibility than them.

A mom-and-pop coffee shop would use this method to only send certain ads and promotions to devices that show frequent activity at the Starbucks and Dunkin’ Donuts that are around the corner.

7. Finding Customers Without Their Location

Most of these companies rely on a method that requires some form of GPS. While this isn’t a problem for most businesses, some customers do intentionally turn off their GPS so they can’t be tracked.

However, this wasn’t a problem for ad agencies for long. Bluetooth can actually trace a device’s location even when it’s GPS is disabled. What’s more is that Bluetooth beacons have actually proven to be more accurate than GPS and can track the exact location of a device within an establishment.

For this reason, it’s best for businesses to use a combination of methods that require both GPS and Bluetooth beacons. That way, they can find every single device that fits the profile of a potential customer.

How to Harness This For Your Business

It’s no great secret that customers make purchases based off of emotion. However, the secret to harnessing those emotions is using geolocation marketing to target customers who have the right emotions.

For instance, the best demographic for an ice cream store might be anyone who went to the nearby toy store with their kids. If that store didn’t have a certain toy, most parents will look for a way to get their kids to stop crying.

Similarly, a store that sells cell phones and devices is more likely to sell to younger customers who use excessive social media and popular apps than older customers who only barely use their phone for email.

If you’re trying to grow your business both online and offline, be sure to check out our blog for all of the information you’ll need. If you have any specific questions or concerns, don’t hesitate to contact us at any time!