Location-Based Marketing: How Does It Work & What Does It Offer
Location Based Marketing: How Does It Work And What Does It Offer For Businesses
With the increase in digital marketing and analysis opportunities, location-based marketing efforts are gaining momentum, making it even more possible to stay in touch with your potential customers instantly and consistently.
Parallel to the increase in the penetration rate of mobile phones over 90%, the use of the internet has become more widespread among all segments of the society. This has caused companies to shift their marketing budgets to digital marketing strategies instead of traditional channels within the scope of digital transformation.
For this reason, location-based marketing methods have recently been the solution to the search for new strategies in the marketing world. There are some new concepts that the world of location-based marketing has added to our lives, and we will start to hear them more often as end users in the near future.
How Location-Based Marketing Works
Location-based marketing basically proceeds through two methods. These are location-based applications and networks that work through social media sign-ups. In this context, location-based applications can obtain the user’s exact location information using GPS.
In location-based applications that proceed through social media, it is possible to access more detailed information such as age, gender, likes, as well as the location of the user. For example, Facebook offers the option to add a location while sharing a picture and collects comments about the place. Likewise, leaving comments and recommendations on the venue’s page on Swarm creates a very important value for the business and the application.
On the other hand, telephone operators already have the basic demographic information of their customers, and they can also learn their location thanks to their cell towers. By dividing this data into segments, user groups with common characteristics can be created.
For example, a clothing brand wants to give special discounts to its customers aged 30-50, who are in the A income group, when they come to the shopping mall. The operator processes this information with a business intelligence tool and sends SMS to these customers who come to the shopping mall after making the target customer list.
What Location-Based Marketing Offers to Businesses
Location-based marketing is a marketing method where you target potential customers who are generally close to your business. With location-based ads, you can target people who have the opportunity to reach your store or business. Thus, you will increase the conversion rates of your ads and reach a much higher quality target audience. Many businesses use this advertising strategy to increase their sales and put their businesses in much better positions.
Location-based marketing methods can be applied to people who have already shopped from your store. Thanks to advertising platforms, you can also identify people close to your location without the requirement to come to your store. Allowing people’s location when using Google or social media channels allows ads to be determined accordingly. In this way, it can show ads in Google, Facebook and Instagram ad networks by location. You can also use location-based ads in this way, and you can create high-quality and high-quality campaigns by making the necessary adjustments.
Personalized: Personalized messages always get higher engagement. With campaigns personalized by location, you have the chance to show more of your potential customers’ interests.
Timed: The key to location-based marketing is that it is timed. Location data of users is obtained in real time. Therefore, you can reach your target audience without missing the momentary opportunity.
Targeted: Location-based marketing allows targeting people in different geographical regions according to their similarities and differences in an easier way. With the right targeting, you can reach people more effectively by spending less money and time.
Location based marketing helps you;
- See your marketing areas and target audience, and easily reach your target audience,
- Determine where it would be better for you to open a store,
- Do competitor analysis clearly,
- Develop regional campaign strategies,
- See the changing needs of your customers and update strategies accordingly,
- Make your ads reach their full potential,
- See the efficiency ratio of your expenses for advertising and marketing.
Location-based marketing strategies are already used in many scenarios and are producing significant results, leveraging real-time data to better target consumers, effectively measure campaigns, and provide customers with the best personalized experience. As customers continue to expect special offers, the future will see more investment in location-based technologies and more innovative use cases in terms of location-based marketing.