Location-based advertising is an increasingly popular marketing strategy for brands all over the world. However, some people may not be familiar with the ins and outs of what it means, and how it works. Therefore, let’s take a look at what location-based advertising is, and how you can get it right.

What is location-based advertising?

Location-based advertising is exactly how it sounds – consumers receive targeted adverts based on their physical location. These adverts can be both online and offline messages, though the term ‘location-based is most commonly used to refer to digital advertising based on location data. On the other hand, offline location-based advertising might also be referred to as out-of-home (OOH) place-based advertising.

Research is conducted into location data of the target market, allowing marketers to show personalized adverts to consumers who qualify. This technique is effective for all areas of the customer journey – from customer discovery to purchasing, to engagement, and retention. This is because it can improve the customer experience, appealing to the ever-increasing modern requirement for instant gratification.

An example of OOH place-based advertising is motorway advertising. Motorway advertising allows brands to target specific demographics based on their daily commute. For example, if your target audience is parents, then a campaign can be launched along school commuting routes before and after school times.

If your target audience is young professionals, a motorway advertising campaign along commuter routes to and from the city, before and after work hours, might be more appropriate. This is proven to be an effective marketing strategy, with 83% of people paying attention to OOH place-based advertising at least some of the time.

Digital examples of location-based advertising mainly involve using location, browsing, and purchasing data to hone in on specific demographics with targeted offers. This includes things like telling customers that a product they previously looked at is available to purchase immediately at your store nearby.

How to get it right

In order to get location-based advertising right, here are a few expert tips and tricks to follow:

• Always choose a location that can be scaled to a meaningful audience. This means doing your research to ensure that there is adequate, and relevant, footfall.
• Choose a location that has links to the type of customer you want to attract.
• Use real-time location data, as opposed to collecting data that might be outdated.
• Don’t use location-based advertising if this product or service is available everywhere, as this will likely drive people to your competitors.
• Stay within the range of acceptable business practices, adhering to data protection legislation. Brands that store sensitive data must be extremely careful in this area.

Benefits of effective location-based advertising

When done right, location-based advertising has many advantages to your business. When surveyed about the leading benefits of this kind of marketing, 89% of companies stated that the biggest advantage was an increase in sales.

Other benefits of location-based advertising include an increase in foot traffic, growth of customer base, higher customer engagement, and improved user experience. This is likely due to the fact that customers can enjoy more relevant advertisements, which can drive them away from your competitors, and towards yourselves.

With these things in mind, you have all the essential information you need to embark on your newest, innovative, and creative location-based advertising campaign.

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