Location-based marketing encompasses online and offline tactics designed to help plan and execute marketing activities based on the geographical location of consumers. At the heart of location-based marketing is the use of consumer data to display brand-relevant messages to a highly targeted audience.
For example, let's say you run a small business operating in a very strong competitive market.
In this scenario, you could use a location-based marketing tactic to send a discount offer to consumers who enter a specified physical area near your competitors' stores.
Location-based marketing isn't limited to large corporations; small businesses can leverage this powerful marketing strategy to drive more targeted customers to their store.
What is Location-Based Marketing?
Location-based marketing, also known as geomarketing, isn't a new concept.
Businesses have always understood the value of marketing to people based on their location. Simply put, there's significant value in knowing the location of your audience.
Today's geomarketing activities are more advanced than some traditional strategies. This technology can identify when a customer enters a store and can provide additional messaging to encourage purchases of specific goods and speed up the checkout process.
The growth of mobile integration, big data management, and consumer trust in technology have all been instrumental in creating more effective location-based marketing.
Why Small Businesses Use Location-Based Marketing?
Location-based marketing has become increasingly popular and affordable, making it a valuable tool for businesses large and small. Key reasons why small businesses should use geomarketing include:
Helps your business boom: The goal of any marketing campaign should be to attract more customers. Location-based marketing can help you put your business in front of customers when they're most interested in buying your product or service. For example, if you're a fitness trainer at a local gym, your customers are within your city. Therefore, you can create Facebook ads limited to people in your specific postal code – which increases the likelihood of reaching potential leads.
Easier segmentation: Segmentation is a marketing activity that involves categorizing customers based on shared interests, activities, or characteristics. Location is one of the best ways to segment a group. You can create a message tailored to that specific location and make it more relevant to that consumer.
Provides better ROI: Good marketers do precise work. Therefore, you should always strive to increase your return on investment with every marketing activity. Collecting, analyzing, and using location data can help you create more effective ads and boost the return on your advertising dollars.
Location-based marketing ideas for small businesses
How can you use location-based marketing for your small business?
Optimize for local search engines: For a small business, local SEO can improve the likelihood of attracting new customers to your business.
You can improve your SEO by creating location-specific content on your website, encouraging customers to give five-star reviews, and optimizing for Google My Business.
Geotarget with PPC: Pay-per-click (PPC) advertising is a powerful tool for small businesses. However, you're missing a big opportunity if you're not using location-specific information and segmentation options with your PPC campaigns.
Geotargeting allows you to filter the audience who can access your PPC ads. This helps you target a specific group based on their location. Therefore, helping prevent wasted clicks from people outside your target area.
Use location tags: Social media sites are known for the use of tags. Location-tagged posts help social systems like Facebook, Twitter, and Instagram filter and display user-generated content. Location tags use your mobile phone's GPS to pinpoint exactly where the image or post occurred.
Use location tags if you want to increase the visibility of your posts. This increases the likelihood that your posts will be seen when users are searching for more photos based on location.
Be active in your community: Technology makes it possible to pinpoint your customers based on location, but many location-based marketing strategies don't require technology, such as activity. If you're a small business, one of the best ways to grow your brand in a specific area is to establish a footprint through social and community awareness activities.
Ultimately, successful marketing is about delivering the right message to the right people at the right time. If you can't precisely define your target audience, you're in for a tough road.
