A Comprehensive Guide to Location-Based Marketing

I am always searching for new and innovative ways to engage with my target audience. One of the most exciting developments is in location-based marketing. This includes geofencing a specific location, geo-targeting people’s locations, beacon targeting for in-store advertising, IP targeting and GPS marketing. In this comprehensive guide, I will explore the ins and outs of location-based marketing, including what it is, how it works, and the benefits it can provide to your brand.

Types of Location-Based Marketing

Location-based marketing refers to any advertising or messaging that is based on a user’s location. This can include strategies like search ads, social media targeting, and local SEO.

There are 4 key types of Location-Based Marketing

• IP Address Targeting: One of the simplest ways to target is by IP address. Every computer or device has an IP (internet protocol) address. So, as an example, you can use reverse IP lookups to send someone who went to your website a direct mail piece, or target an IP address with display advertisements in addition to a traditional piece.
• Geofencing: Geofencing marketing is a more specific subset of location-based marketing that involves creating a virtual boundary around a specific location. When a user enters or exits that boundary, a marketing message is triggered. This allows for a more targeted and personalized approach to advertising, as brands can tailor their messages based on a user’s real-time location and behavior. Similarly, proximity marketing allows you to target prospects who are within a certain range of a location.
• GPS Marketing: If you use a GPS or even something like Waze, you may notice ads. GPS marketing allows you to target someone based on this location info.
• Beacon Targeting: Devices called beacons can be placed within certain locations, say your favorite retail store, which allows marketers to serve advertisements in certain range of beacons. If you’re hanging out close to the cereal aisle, this gives brands the chance to target you with that $1 off coupon.

The level of sophistication continues to increase for location-based marketing. Today, you can combine online behavior data, with interests and behaviors, with physical location data, to deliver more meaningful and targeted marketing to consumers.

What is Geofencing Marketing?

Geofencing marketing is a location-based advertising strategy that uses mobile devices to target specific geographic areas. Essentially, it involves creating a virtual boundary (or “geofence”) around a particular location, such as a store or event venue. When a mobile device enters or exits that boundary, a marketing message is triggered and sent to the user’s device.

One of the key advantages of geofencing marketing is its ability to reach consumers in a highly targeted and personalized way. By using location data, brands can deliver relevant messages and offers to users based on their real-time location and behavior. This can lead to higher engagement rates, increased conversions, and a better overall customer experience.

How Geofencing Marketing Works

So, how exactly does geofencing marketing work? The process involves several key steps:

1. Define your geofence: The first step is to decide on the geographic area you want to target. This could be a physical location like a store or event venue, or it could be a broader area like a city or neighborhood. Once you have defined your target area, you can create a virtual boundary around it using GPS or other location-based technologies.
2. Set your triggers: Next, you need to determine what actions will trigger your marketing messages. This could be when a user enters or exits the geofenced area, or it could be based on other factors like time of day or user behavior.
3. Create your message: Once you have defined your target area and triggers, you can create your marketing message. This could be a push notification, an SMS message, or an in-app ad, depending on the user’s device and preferences. Make sure your message is relevant and personalized to the user’s location and behavior.
4. Send your message: When a user enters or exits the geofenced area or triggers your other defined actions, your marketing message is automatically sent to their device. The message should include a clear call-to-action and an incentive for the user to engage with your brand, such as a discount or special offer.

Benefits of Geofencing Marketing

There are numerous benefits to using geofencing marketing as part of your overall advertising strategy. Here are just a few:

1. Increased engagement: By delivering personalized and relevant messages based on a user’s real-time location and behavior, geofencing marketing can lead to higher engagement rates and increased conversions.
2. Better customer experience: Geofencing marketing allows brands to deliver targeted and meaningful messages to users, which can improve their overall experience with the brand.
3. Improved ROI: Because geofencing marketing is highly targeted and personalized, it can lead to a higher return on investment compared to more traditional forms of advertising.
4. Real-time data: Geofencing marketing provides real-time data on user location and behavior, which can be used to optimize future marketing campaigns and improve overall business strategies.

Location-Based Marketing Examples

So, what does location-based marketing look like in action? Here are a few examples of how brands are using this strategy to engage with their target audience:

1. Retail stores: Retailers can use geofencing marketing to send targeted messages and offers to users when they enter or exit their stores. For example, a project I worked on long ago targeted moms with children under the age of 12 who recently left a doctors office during cold and flu season. We then targeted a coupon offer to these mom’s to go to a retailer for their children’s cold and flu medicine.
2. Event venues – Trade Shows: Event venues can use geofencing marketing to send reminders and other useful information to attendees based on their location within the venue. For example, a trade show sponsor can use geofencing to target participants during and after the conference. Or a concert venue might serve ads for upcoming season tickets or additional shows.
3. Customer Targeting: If you have prospect data you are already using in other marketing efforts, why not append an MAID (mobile ad ID) to target mobile devices of these prospects for an additional touchpoint. Better yet, by taking first party data, combining with a third-party append, and then adding in behavioral triggers, your ability to target at the moment of conversion is 10x.

Types of Geofencing Marketing

There are several different types of geofencing marketing strategies you can use to engage with your target audience. Here are a few examples:

1. Proximity marketing: This involves creating a geofence around a physical location, such as a store or event venue, and delivering marketing messages to users based on their proximity to that location.
2. Behavioral marketing: This involves creating a geofence around a location and delivering marketing messages to users based on their behavior within that location. For example, a gym might send a message offering a discount on a personal training session to users who spend more than an hour at the gym.
3. Competitive marketing: This involves creating a geofence around a competitor’s location and delivering marketing messages to users in that area. For example, a coffee shop might send a message offering a discount on a drink to users who are within a certain distance of a competing coffee shop.

Creating a Geofencing Marketing Strategy

If you’re interested in using geofencing marketing as part of your overall advertising strategy, there are a few key steps you should follow:

1. Define your goals: What do you hope to achieve with your geofencing marketing campaign? Are you looking to drive foot traffic to your store, increase online sales, or improve overall engagement rates?
2. Identify your target audience: Who are you trying to reach with your geofencing marketing messages? What are their demographics, interests, and behaviors?
3. Choose your target locations: Which physical locations or geographic areas do you want to target with your geofencing marketing campaign?
4. Craft your message: What message do you want to deliver to your target audience? How can you make it relevant and personalized to their location and behavior?
5. Test and refine: Once you have launched your geofencing marketing campaign, it’s important to track your results and make adjustments as needed. Use real-time data to optimize your messages and improve overall campaign performance.

Best Practices for Geofencing Marketing

To get the most out of your geofencing marketing campaigns, here are a few best practices to keep in mind:

1. Make your messages relevant: Deliver messages that are personalized and relevant to the user’s location and behavior.
2. Offer an incentive: Provide a clear call-to-action and an incentive for users to engage with your brand, such as a discount or special offer.
3. Respect user privacy: Be transparent about your data collection practices and give users the option to opt out of your geofencing marketing messages.
4. Track your results: Use real-time data to track your campaign performance and make adjustments as needed.

Measuring the Success of Location Marketing Campaigns

To determine the success of your geofencing marketing campaigns, there are several key metrics you should track:

1. Engagement rates: How many users are engaging with your geofencing marketing messages? Review foot traffic reports to understand increase of in-store visits.
2. Conversion rates: How many users are taking the desired action after receiving your geofencing marketing message?
3. ROI: How much revenue are you generating from your geofencing marketing campaigns compared to your overall advertising spend?
4. Customer feedback: What are users saying about your geofencing marketing messages? Are they finding them helpful and relevant?

Related articles: Attribution Strategies for Accurately Measuring Marketing Success, The Power of Targeted Marketing: How to Reach Your Ideal Audience, How to Implement Data-Driven Marketing Solutions

Location Marketing Services and Tools

There are several geofencing marketing services and tools available to help you create and launch your campaigns. Here are a few examples:

1. Foursquare: Foursquare provides a geofencing marketing platform that allows brands to target users based on their real-time location and behavior.
2. Reveal Mobile: Reveal Mobile provides a location-based marketing platform that includes geofencing capabilities.
3. Google Ads: Google Ads provides several location-based advertising options, including geofencing.

Conclusion

Location-based marketing is a powerful and innovative way to engage with your target audience in a highly personalized and relevant way. By creating virtual boundaries around specific locations and using real-time data to deliver targeted messages, brands can improve overall engagement rates, increase conversions, and provide a better customer experience. With the right strategy and tools in place, geofencing marketing can help take your advertising efforts to the next level.