Studies suggest that in 2019, marketers across the globe will spend $26 billion on campaigns that aim at their intended audience via geo-location input. Suffice it to say that location-based marketing has not only already achieved massive growth, but is poised to assume an even more pivotal role in business strategies, no matter the industry, in the future. However, how does it work? Allow us to explain.
Geo-location based marketing makes use of their users’ location data to various ends; for starters, it enables the delivery of personalized content at the appropriate time. For example - in-store discounts offer when the customer steps into the brick and mortar store’s geo-fenced area. Moreover, personalized content is not the only benefit it delivers — it empowers businesses to understand their customers better and then use that information to provide better offers, content, and even enhanced features on their apps. As you can see, this technique is essentially a marketing gold-mine; unfortunately, this gold mine isn’t valuable to every industry and works only in specific scenarios.
Where location-based marketing works
This marketing strategy is ideal for companies that have brick and mortar stores. It is because a physical store has the ability to geofence locations to capture data about people who visit the store, thus driving location-based analytics as well as marketing. Instead of putting together target audience groups based on social media activity, marketers in such businesses can build audiences for geo-location-based campaigns on the basis where people go and the places they visit in the real world.
It, in turn, empowers marketers with the ability to make sure that they can reach out to the relevant audience at the appropriate time to deliver the right content. Geo-targeted marketing campaigns will work for any industry that has a physical store and not merely an e-commerce store.
We’ll say it once again — its apparent potential is not the only reason why businesses must pay attention to geo-location-based marketing. Among other things, this tactic allows enterprises to deliver highly-targeted ads. By analyzing geo-behavioral pattern and location history, a business can develop a highly-specific audience, which can then be targeted based on not only the location they may be currently in but also the context associated with that specific location.
And not just that, they can also make use of footfall attribution to gain an in-depth understanding of how well their campaign worked and the ROI it was able to deliver.
Believe it or not, but location-based marketing is only just coming to life. However, when 5G is rolled out, and IoT is in full bloom, companies across the globe will be able to make use of geo location-based apps to do business and market their offerings to their intended customers in a plethora of modern ways and in ways that they wouldn't have deemed feasible even till only a few years ago.