4 Aspects About Location Based Marketing You Should Definitely Know


As mobile-usage has increased extensively in the past few years, the importance of location marketing has also increased. However, several marketers do not know how to use this tactic effectively.

If you’re a business owner or a marketing lead who is confused about Location Marketing, this article is for you. After reading, you will be able to incorporate this important marketing tactic into your marketing strategy. Ready?

What is Location-Based Marketing?

Smartphones let users enable their location for various purposes like cab-bookings and using GoogleMaps. When they browse a company’s website, the website seeks permission to know the user’s location. Using this location-based data, businesses can understand where their target audience is and how to tap them effectively.

This is called location-based marketing. It also has several other names like geotargeting marketing, hyperlocal marketing, proximity-based marketing, and geolocation marketing.

Why is Location-Based Marketing Important?

If you’re excluding location-based marketing from your marketing strategy, you’re missing out on a lot. MarTech Series conducted a survey and found out that 83% of marketers achieved more success in their campaigns if they had access to their target customers’ location. This is because location-based marketing enables the marketers to tune their products or services according to their customer’s geography, hence, improving their relationships.

Why Leverage Location-Based Marketing?

The statistics of location-based marketing clearly indicate how important it is for your marketing strategy. An encouraging survey from eMarketer revealed that 94% of millennials and over 225 million US citizens have a smartphone. Moreover, they use their phones extensively.

The average time spent on smartphones ( 3 hours 43 minutes) has increased compared to watching Television (3 hours 35 minutes). That’s a significant change in only five years, and the trend indicates that this gap will increase even more. By the end of 2021, the average time spent on smartphones is expected to be 4 hours. Time spent on T.V. is expected to drop to 3 hours 22 minutes.

A simple rule of marketing is targeting customers where they are currently present. If the transactional-paradigm is gradually shifting to smartphones from T.V., it would make sense to allocate budgets on online marketing like Google and Facebook ads rather than TV ads.

Benefits of Location-Based Marketing

  1. Location Targeting

Location data allows you to create location-specific ads (and local Search Engine optimization) that address your customer’s problems. As more people find about your business online (which is near to them), you get more footfall to your store.

  1. Data Analytics

As more customers interact with the ads and visit your store, you can check the analytics to understand their shopping behavior. This will help you to create even more effective buyer personas in the future.

  1. Advanced Targeting

Precision translates to better marketing. Consider connecting with a digital marketing strategy consultant to create and segment the ads based on the customer’s location, shopping times, average expenditure, etc. Doing so will increase the conversion rate, as well as the return-on-investment on promotions.

  1. Smart Marketing

Google-ads uses the cost-per-click model to charge the advertisers. You can run location-based ads on your target customer’s location. You will only be charged if the user clicks and visits your online-store (not for impressions). This way, location-based ads can avoid your cash burn while increasing your ROI at the same time.

Wrapping Up

Usage of smartphones is expected to increase exponentially in the future – no points guessing that. Moreover, location-based marketing is a rapidly evolving tactic amidst the marketing ecosystem. You must include this tactic in your business’ growth strategy. Use your learnings from this article to include location-based marketing in your next marketing strategy. All the best!


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