October 24, 2022
Reaching only the “right” customers from a certain city, region, or country is a headache for most businesses. If you have faced this problem as well, the article is for you. We are going to consider targeted advertising and geomarketing to make your ads more effective and save your budget.
Geomarketing is a popular practice, which implies using clients’ locations to deliver personalized content or geo-targeted advertising.
Knowing the location is helpful in the following intentions:
Making offers more relevant and timely.
Before considering the pros & cons of geomarketing solutions and possible use cases, we should distinguish their types.
Thus, to start your location-based marketing campaign, first, you must decide your true goals and expectations. There are numerous geomarketing tools, but marketers usually need just a few of them.
Geomarketing is able to make life better for both companies and customers. The main advantages for businesses are:
Users get the following benefits:
Other disadvantages are:
Thus, you should definitely include users’ locations in your marketing strategy.
Hence, geotargeted ads and other marketing tools will be more and more widespread without any doubts. Their rapid development has to do with the high demand for advanced digital technologies including IoT, Big Data platforms, and AI solutions related to product promotion.
Geomarketing has especially become popular during the pandemic: businesses massively moved online, stopped offline advertising, and launched online campaigns. For example, major national grocery retailers in Ukraine have created websites where users can order products with door-to-door delivery.
Another trend is security and privacy. Previously, companies were able to gather and process any information from the users’ devices. Today, before providing such data, clients must permit that. Moreover, the main operating systems – Android and iOS – show when the GPS module is active.
Location helps marketers better understand the requirements and needs of their clients. Thus, geotargeting marketing is a thing, the adoption of which allows businesses to outrun competitors and get higher income.
Now, let’s take a look at the best practices of geotargeted ads and services.
There are numerous cases when it’s necessary and useful to know the users’ locations, especially for sending situational messages. Below, you’ll find some bright examples.
It is a popular service that allows travelers to buy a ticket on a bus in several taps. To promote its solution and increase revenue, Busfor regularly sends mobile pushes, which take location into account. So, if a user from Praha is buying a ticket to Pardubice, they will be offered to order a return ticket after a while. Or if this person ended up in another city, say in Hradec Králové, the system will send a message about buying a ticket home – to Praha.
Multiplex is a chain of cinemas in Ukraine. When a client buys a ticket, the company figures out his exact location (city and movie theater). Then, the information is used for different push notifications:
It’s a delivery service that collaborates with numerous retailers and establishments to let customers stay at home when it’s cold, snowing, or raining outside.
In order to launch such a campaign, the company tracks the weather in different regions (easy enough). Instead of free shipping, there may be a delivery discount.
But what about businesses that only serve offline? In this case, they should warm up clients in their cafés/restaurants by preparing special treats and inviting people. Such offers are often relevant for employees of business centers. For instance, if an establishment usually serves employees of nearby companies and they are around the corner from it, there is a high probability that people will respond to the offer to drop by.
Questionnaires can help to find out the visitor's place of work. Another option is to adopt the approach of Rocket (a food delivery startup): if there are more than N orders at lunchtime in the same place for a month and delivery to the business center, then the client works there.
The experience of William Hill, one of the most famous sports betting outlets, shows that location-based push notifications achieve 400% better engagement. The market player regularly sends such messages with targeted offers (free bets and the like) and gets stunning results. The motto of William Hill is “don’t overwhelm users but ensure that all notifications are totally relevant.”
It’s a simple but vivid example of location-based marketing. When users indicate where they are, Aliexpress changes currencies and delivery details. It significantly improves the user experience and simplifies the ordering process.
The name of the company, which offers electronic cigarettes, was changed. Its sales and promotions are accompanied by an invitation to an offline shop. The users’ locations are determined by the place of purchase or device registration. This is a perfect practice for regular notifications because you don't have to wait for the user to turn on GPS and allow tracking so that your system can determine their location.
In order to improve your tone of voice and make your geotargeting ads and offers more personalized, you should identify the occupation, status, interests, problems, and preferences of your customers. The information about what places they attend will be beneficial for user segmentation. Do they mostly visit business centers or universities, theaters or discos? Adopt your products and services to their needs and hobbies.
Note that you shouldn’t monitor your clients by yourself: there are special services like Big Data.
Thus, we have figured out what geotargeting is, what its types exist, and, in addition, considered the most popular geomarketing examples. Today, it’s impossible to successfully compete in the market without adopting modern technologies, which allows making tailored offers.
Geotargeting is a relatively new tool applied already by numerous companies. Local restaurants and independent shops often avail of it. Also, geotargeting is useful for large organizations to enter regional, national, and international markets.
Boost your sales, improve the user experience, and increase revenue with the help of location-based marketing! We, at Reteno, will help you succeed. Follow the link to get acquainted with our services.
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