Is Location-Based Marketing the Next Big Thing?

Location Based Marketing

by Reviewkeg Staff Writer | May 25, 2017

With more number of people using smartphones in their day to day life, it has become an opportunity for marketers to target customers on the basis of their geographical location. Such an opportunity gave rise to location-based marketing.

As the name implies,

“location-based marketing is the kind of marketing done using mobile phones where information in the form of media content or messages is delivered to the user on the basis of his geographical location.”

Having said that, location-based marketing is a perfect choice of marketing for those businesses who wants to target their customers within a specific radius of their location. Businesses can use some location-based strategies such as push and pull notifications in their mobile apps which ask users to specify their location. Push notifications such as SMS and Bluetooth can be used to know about search habit of consumers and to alert with the available discounts, offers, pricing or coupons.

Small to medium businesses can use location-based marketing in order to boost their target customers. However, to keep on growing the business with passing time, it is important to adopt the changes being made in innovation and marketing strategies.

The importance of location-based campaigning and marketing

The Future of Proximity & Micro-Location Marketing [Infographic]
Infographic byMDG Advertising

Above nifty infographic provided by MGD Advertising shows that “almost 72 percent of customers respond to marketing messages that they get when they are near the retailer.” It clearly shows the importance and benefits of location-based marketing.

The main idea of location-based marketing (LBM) is straightforward and something advertisers need to actualize it as soon as they can. Utilizing the marketing strategies with mobile enables advertisers to target the clients by using their geographic area, progressively. Meeting the client’s desires with the correct situation and timing of advertisement messages is an important thing if the retailer wants to increase their customers. With the help of real-time location-based advertising, advertisers can at last stop the guesswork and effectively contact the correct customers based on the real spots they visit, thus impacting where they will go next. Making promotions that include location-based campaigns as well as focusing on the right audience can result in an increased purchaser engagement.

A study by Pew Institute declared that “almost 74% of adult smartphone owners with the ages around 18 and older get directions or location based info by using their smartphones.” So, it is a great opportunity for any brand or retailer to use real-time location-based advertising to target the right audience at the right time.

Characteristics of location-based marketing

According to the 2014 Consumer Health Sentiments Report, approximately 91 percent of the individuals are within arm’s reach of their smartphones.Today, the developing availability, as well as depth of client area information, is helping advertisers to incorporate area based strategies into their mobile marketing amazingly.

  • Location-based marketing offers personalization: The developing cell phone innovation is increasing the clients’ knowledge and keeps them connected with the world. It also offers advertisers another chance to utilize client information to contact individuals whenever they are near them. Now a day, when a client calls any business, they can use geo-location to consequently identify their area and direct them to their closest store. It will result in enhanced client experience and also make the business marketing more effective.
  • LBM makes your investment worth it: Several businesses owners put a lot of cash into their marketing strategies and try to make it work viable for the business. Focusing on area-based strategies can help by physically narrowing down where your message is being seen. LBM is less expensive and requires less effort than any other advertising or marketing. Using the mobile marketing strategies provides several chances to draw in a large number of clients. You just have to guarantee that you are connecting with the right market, and making your investment worth it.
  • Focus the right audience: The chances to reach a large number of targeted audience increases with the use of mobile marketing. Location-based campaigns offer geographic customers targeting which is considerably beneficial for advertisers in terms of costs as well as efforts. However, real-time location base advertising focuses the right audience at the right time which results in the increased customers.
  • Keeps the business in competition: A lot of businesses are using LBM to increase their customers. At this time, it is very important to utilize such mobile marketing strategies to stay in the competition and to prove yourself no less than others. It is indicated that in 2014, around $4.5 billion was spent on LBM and by 2018 it will reach up to $15.7 billion and make up 52% of the mobile marketing strategies.Try not to help your rivals by ignoring location-based campaigns or marketing as it is very important to use in order to stay in the competition. Such type of mobile marketing strategies will empower you to contact more qualified groups of customers and as a result, your business will experience a greater number of new customers.

Conclusion – Location Intelligence is such an important area which is evolving the way businesses tend to communicate with consumers. It’s relatively new thing in the field of marketing which keeps on changing based on the outlook of technological advancements.

So, are you prepared with such technological improvement in your marketing strategy?

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