11 Location-based mobile marketing FAQs you need to know
1. What is location-based marketing? Location-based services (LBS) use real-time geographical data from a mobile device to provide information, entertainment and security. Location-based marketing (LBM) is one of the location-based services. Location-based marketing is a direct marketing strategy that uses a device’s geo-data to alert the users about the offerings of businesses relevant to their […]
Last Updated: February 22, 2021
1. What is location-based marketing?
Location-based services (LBS) use real-time geographical data from a mobile device to provide information, entertainment and security. Location-based marketing (LBM) is one of the location-based services.
Location-based marketing is a direct marketing strategy that uses a device’s geo-data to alert the users about the offerings of businesses relevant to their location.
For example, Ridesharing apps like Uber and LYFT, use the tagged-location in Snapchat to promote their transportation services. Snapchat provides an in-app call-to-action (CTA) for its users to book an Uber/LYFT ride to the location tagged in the picture that they are viewing.
2. What is the difference between location-based advertising and location-based promotion?
Location-based advertising and location-based promotions are the subdomains of location-based marketing. Location-based advertising is done to build brand awareness, whereas location-based promotion is used to push short-term sales.
3. What is “radius targeting”?
Radius targeting, also referred to as proximity targeting is a location-based marketing technology that allows businesses to target the people in the radius around a particular point of location. Radius targeted advertising is done using technologies like GPS, RFID, NFC and Beacon.
Let’s say you have a hotel close to the airport. You could run radius targeted campaigns at the airport for the availability of rooms. Passengers who missed a connecting flight or got re-routed due to weather conditions might find these campaigns extremely useful.
Geofencing is one of the radius targeting methods that use GPS and/or RFID to create a virtual fence around the user’s location. Ads are then shown to users who enter that geofence. Geofencing is especially helpful when you need to target large areas ranging from over 50,000 meters to anything less. It is beneficial for attracting customers however, marketers need a more accurate way to target customers in-store where messages have to be extremely contextual and relevant.
For a more personalised communication, marketers rely on proximity marketing. It is advisable to opt for proximity marketing for target areas ranging from 10 meters to 300 meters. Proximity marketing can be achieved by technologies such as RFID, NFC, QR codes and Bluetooth beacons. Each technology has its own set of capabilities and limitations. However, given the most popular proximity use-cases, Bluetooth beacon technology is the most flexible and optimal proximity marketing technology.
5. What is the difference between location-based marketing and proximity marketing?
Proximity marketing is the subset of location-based marketing. Both these forms of marketing target customers based on geographical positioning. The difference essentially lies in the radius of targeting. Proximity marketing is a more granular form of marketing. It can be as specific as 10 meters around a painting at a museum or, 50 meters around a newly launched car in a dealership. Location-based marketing, however, is not as accurate and targeted as the previous form.
Which of the two is recommended for your business?
Depending on the use case you want to use it for, you can choose between proximity marketing and location-based marketing. If the use-case is precise in nature and wants to address a smaller region, opt for proximity marketing. On the other hand, if use-case involves a larger radius, for example, a few kilometres then opt for location-based marketing.
6. What is the geo-targeting?
Geo-targeting is technically a subdomain of geo-fencing that targets only people who match specific criteria. Geo-targeting determines the targeting criteria using demographics, interests, and behaviours.
Unlike geofencing that promotes a generic offer to everyone in the targeted radius, geo-targeting promotes only to a specific crowd. For example, promoting loyalty programs only to those customers of your business.
7. What is Geo-conquesting?
Geo-conquesting is a location-based marketing technology that focuses on attracting the customers of competitors towards your business using location-based ads. These ads target only the customers of your rivals and convince them that your products/services/offers are better than that of your competitors.
For example, using beacon analytics in a retail store to analyse footfall metrics, most visited and least visited sections, traffic at the billing counter etc. This analysis can give you a clear insight of the difference between how many people visited your store and how many people bought your merchandise. These data will be of great use when you optimise your business.
9. How can you target the audience who have turned off location on their smartphones?
Google actually tracks location information from Android devices even if they have location services disabled. Google proclaims that it’s good for people to allow themselves to be tracked and it is well known that the company keeps the user’s private data secure.
Beacons don’t require any internet connectivity to receive notifications.
Beacons can track indoor movements but GPS cannot
Beacons are faster than GPS
Beacons are more precise
Location-based marketing works the best when businesses make beacons and GPS work in tandem.
Download our ebook that comprehensively compares beacons with other proximity technologies
11. What are some good examples of brands using location-based marketing?
Adidas: in 2013, Adidas linked their search campaigns with location extensions. They drove the customers who were searching for an Adidas store straight to the store locator page on the brand’s site. As a result, one in every five customers who clicked on the store locator page ended up visiting the store. This campaign resulted in a 680% increment in ROI.
Wholefoods: Whole Foods employed geo-conquesting tools to target shoppers near competing for grocery stores. The campaign resulted in yielding 4.69% post-click conversion rate which is three times more than the national average of 1.43%.