Our smartphone today knows us way better than the dearest of friends, or perhaps, even spouses we ‘share’ our lives with. It follows us wherever we go, and in the process, shares our location, interests and history with the wide world of internet based on our online behavior.
These attributes make smartphones the most efficient targeting tool in the world of advertising, and that’s where location-based advertising stems from.
What is Location-based advertising?
Location-based advertising is all about being one-on-one with your target customer, by sending personalized messages or pop-up notifications about your business based on their geographic location.
Given that a majority of smartphone users today happily share their location through the various apps they use and their online behavior can be gauged through their online history, location-based advertising presents a great opportunity to capture a potential customer’s imagination at the right time and with the right message.
Different Forms of Location-based Advertising
Any form of mobile-based advertising is complex business – one that requires precision and technique. These different approaches to location-based advertising help you leverage a variety of information in order to capture your target customers’ imagination effectively:
- Hyper-contextual targeting: Where you tap in on a prevalent scenario to sell your services. For instance, targeting messages for selling home security systems to people living in neighborhoods with higher crime rate.
- Geo-aware targeting: This is location-based advertising in its most basic form. Targeting potential customers in the vicinity of your business location. A fast food joint sending a special discount coupon code to a registered customer who happens to be in the vicinity of your store around lunch time.
- Geo-fencing: This location-based advertising technique is all about creating a virtual fence and roping in as many customers as possible. For instance, you operate a clothing store in a mall. Yours isn’t going to be the only store selling clothes in that mall. Then how do you make sure the right customers come to you instead of trickling away to your competitors? By sending out relevant and lucrative offers to target customers present in the vicinity of your store on their smartphones. For instance, 50 percent off on first 100 purchases.
- Place-based targeting: This is one of the most effective ways of attracting customers for local businesses. For instance, offering a special discount or giveaway to moviegoers at a multiplex near you is great way to make sure they pay you visit afterwards.
Why is it all the rage?
Almost every business, no matter how big or small, is looking talking about location-based advertising today. Here’s what makes this recent form of advertising so immensely popular:
- Personalized touch: It is common knowledge that personalized advertising messages are likely to have a more positive response as compared to generic ones. Those special preview sales messages with a ‘just for you’ added for extra effective are definitely more impactful than a generic message announcing a sale.
- Relevance: There is no point selling sunscreen to a person looking for an umbrella. Yes? This is exactly what sets location-based advertising apart from other traditional forms of advertising. In location-based advertising, the messages are more relevant and targeted to the right set of audience.
- Better Access: Unlike traditional forms of advertising such as print or TV ads, where you can reach your target customers only when they tune into the medium of advertising and for a limited amount of time, location-based advertising allows you the freedom to reach out to them anytime, anywhere.
- Timeliness: Location-based advertising happens in real time. You have the liberty to time your messages well for maximum impact. For instance, an advertisement for a special lunch menu at your restaurant may not have as much impact if your target customer reads it over breakfast as it would if they read it just before lunch hour, while slogging it out at their work station.
Is it imprudent to ignore it?
Yes, and here’s why:
- Location-based advertising is your chance to reach out to your target customers with some added value that would make them prefer you over your competitors, without having to put your strategy out on billboards or front page advertisements.
- It is a lot cheaper than traditional forms of advertising.
- According to Internet Advertising Bureau, a whopping 66 percent of marketers look at location-based advertising as the most enterprising opportunity for the year 2016.
- Almost everyone we know today uses a smartphone, and this present a seamless opportunity for targeting a vast customer base.
Location sharing and check-ins have become a way of life, and these can be a great aide for managing and optimizing advertisement campaigns.