According to a recent IAB UK study 66% of marketer think that location based marketing is the “most exciting” 2016 advertising opportunity, especially in mobile. With technology getting sharper every day, data availability rising and few people restricting geolocalisation data on their phones, we can see why.

What is Location-Based Marketing (LBM)?

Location-based marketing is the digital version of local marketing. With the rise of smartphones, your customers are basically carrying a tracking device in their pocket at all times, allowing you to push geo-targeted offers to them where and when they are the most inclined to use it.

One type of location-based incentive can be implemented via push messages (think: SMS or app notifications). They usually take the form of a coupon or news flash. Imagine, for example, a young girl hanging out with her friends in a commercial area. Her phone rings. She’s just received a 20% discount on jeans to use in the nearby outlet of her favourite clothing brand. These message are especially efficient for low commitment products, as they trigger unplanned buying by pushing the right incentive at the right moment. The weakness of this type of strategy, however, is that it requires your users downloading your application and agreeing to be geolocalized. These kinds of location-based marketing products already exist, with the end goal of trying to make the customer buy more.

The second kind of geo-targeted campaigns are made for display ads on online media outlets or social media. They take the form of banners with geo-targeted messages. For example, if you are a sports gear distributor you might want to advertise swimwear and sports bras in California while simultaneously advertising ski gear in Vermont. You might also want to improve your in-store traffic by inviting nearby potential customers to come try out your product or pick up their online purchases in your nearest bricks-and-mortar location. Thanks to specialized algorithms, display agencies are now able to choose the most effective visual and message for your customers.  This second type of localization targeted marketing strategy has a much wider reach, as it targets any internet user interested in sports gear, enhancing the chances of turning them into customers by serving them targeted calls to action.

From Global to Local  

Globalization is on the rise and multinationals are implementing local strategies. These strategies combine general branding and specific geographic areas to engage target audiences in the most effective and personalised manner possible. Depending on the local culture and lifestyle, habits can be very different. This is true in regards to different countries, of course, but it can also apply on a much smaller scale within countries.

Your country strategy is the backbone of your brand’s communication strategy. It should convey your brand’s values and identity. Local strategies, on the other hand, are more closely related to the operational scope of your business.

 3 Reasons to Use Location-Based Strategies :

1.       Give the customer what they want, when they want it

With audiences flooded by thousands of communication messages each day, nothing is more harmful for your brand than to give them content that has nothing to do with what they’re interested in. Avoid advertising ice cream cones to gloomy Parisian in the middle of a rainy winter. Côte d’Azure vacationers, on the other hand, are the perfect target for this type of message. It’s all a question of giving your customer what they need when they need it.

2.       Regional belonging : the new power of brand communication

We live in a time where belonging to something is becoming more and more important and people are looking for messages that will make them feel included within a culture. Regional messages are a way to engage your customer around a sense of belonging, pride and culture. The emotional pull you will get by using regional identifier is a great way to leverage customer interest. As an example, Le Slip Français ran a campaign offering to create regional underwear that were then pushed in each French region.

3.       Laying the groundwork for bricks-and-mortar rebirth

It’s no secret that the bricks-and-mortar side of business has been hit hard by the growth in popularity of e-commerce.  People lead busy lives and leisure time is becoming increasingly rare, customers want fast and easy access to goods and services. They don’t have the time to visit shops. In-the-moment calls to action enable and encourage on-site shopping by reminding customers of the proximity and advantages of physical shops. Moreover, with incentives like time-sensitive promotions and nearby store locations, the in-person shopping experience become even more appealing.

 

— by Valentine Boudias