How Precise Location-Based Advertising is the Future of Mobile Marketing

Do you ever wonder how your phone just seems to automatically serve you advertisements based on your browsing history, or what you tend to click on? Companies can use this information to provide a better understanding of their customer profile and what they can do to better engage with their customers. This is just one marketing tactic. Another marketing tactic that is becoming more popular is location-based advertising. In this article, we will discuss how location advertising works and why it is the future of mobile marketing.

Location is everything

When you’re out shopping, it is likely that you pass by multiple stores without actually even entering, especially if they are stores that you are unfamiliar with. But let’s say that you’re walking by a store that you may not necessarily have shopped at but as you're walking by you get a 50% discount offer directly to your phone for that store. Now you’re at least a little intrigued and you enter to check out what the store is all about. This is location-based advertising at work.

How does location advertising work?

Marketers will create a personalized message that is within close proximity of the store that they want you to enter. It works by sending a personalized message to a shopper by means of a digital message directly to their smartphone. As the shopper is walking through the mall they may receive notice of a sale at a nearby store they are approaching. This is done through something known as geofencing.

Geofencing is a virtual parameter that is set by marketers when using indoor mapping software. Essentially the idea is to mark an area on a digital map of the mall and whenever a person passes by this virtual parameter they will receive a digital notification on their smartphone.

BLE Beacons are also used for proximity marketing. Beacons have adhered to the mall’s wall corridors and they receive signals from the shopper's smartphones. The beacons pick up on these signals and transmit information back to the individual's device, notifying them of an offer or promotion.

The example provided earlier is just one way that a marketing team can get new customers into their store. Location-based advertising can also be used to target customers based on their geographical data. This isn't done so much within proximity to a storefront but is useful in many other areas such as finding the target audience for winter sports. If you are advertising in areas where people live in close proximity to a ski hill then you likely have a strong market.

Why is location advertising the future of marketing?

Provide store leads

Offering proximity-based messages that are contextual to the shopper's journey can present them with a new store to check out based on their past purchases within the mall. This can be an avenue for the customer to discover something new and also helps stores gain additional foot traffic.

Staying relevant

Choosing to go in the direction of a more modern marketing approach is the ticket that retailers need to stay fresh in the minds of their customers. Marketing online is one thing, but marketing when the person is within meters of your store helps with the decision-making process of the shopper. The more convenient, the better.

Better customer service

Proximity marketing isn't just for sending sales offers and promotions. It can also be used for sending personalized welcome messages to your customers as they enter the store. This can be especially useful in areas where there is a wait to enter the store, or if the customer requires a reservation. Information can be provided about their upcoming visit as well as lead into promotions or other offers that they may be interested in viewing while they wait.

Data collection

When shoppers enter an area that is either geofenced or supported by BLE beacons, retailers can gather data relating to shoppers' preferences and behaviors when interacting with their store or application. This information can be then used to re-target customers on an even more personalized level, showing them offers that are relevant to their wants and needs.

Stores can also trace the amount of time a shopper typically spends in the store and how often they return to shop. This data can help marketers determine the best strategy to target shoppers so as they increase the frequency of shopping or the amount of time they spend in the store.

Conclusion

Mapsted offers location-based services including proximity marketing, geofence technology, and location analytics. If you want to really harness the power of location services, it's best to use the whole scope of location data available to you.

A Passionate writer with a great interest in technology. Loves to write and learn more about the latest developments in the tech industry.