The phrase “geomarketing” may be familiar to you if you’ve been following the most recent developments in marketing. This method, which uses location-based technology, is anticipated to become extremely popular for advertising businesses.
It is not unexpected that geomarketing is becoming more significant, given that the number of mobile phone users worldwide is anticipated to exceed 4.8 billion? in the upcoming year.
You may use the information? in this tutorial to better understand how geomarketing works and how to apply it to your business. You may learn how to effectively use geomarketing as a marketing tactic for your business thanks to the advice, tools, and examples it includes?.
What to know about Geo-Marketing
► The geo-marketing tool helps businesses develop marketing strategies and campaigns by using geographic or location-based data.
► Geo-marketing has become more economical and available to businesses of all sizes as digital technology develops.
► It frequently forms a component of a digital marketing plan that uses geographic information systems (GIS) and data with a geographic context to promote businesses through online and mobile searches?.
► By using geo-marketing, customer information gained from online transactions, mobile devices, and other sources is gathered and maintained in business databases.
► By analyzing the geo-marketing data, marketers can learn where their customers are.
► Geo-marketing may also help with the location of a new office or store or with locating clients who are similar to a particular kind in different regions of the country?.
What is Geo-Marketing
Geo-marketing is a tool that marketers use to design campaigns and choose tactics rather than a short-term marketing plan or campaign in and of itself. It includes using data to produce market environment insights.
Digital mapping is used to organize and display data for analysis and decision-making in geo-marketing, which frames marketing activities using location-based information. Marketers can look at data by a single physical place, like a particular business, or by a specific geographic area, like a suburban neighborhood next to a big metropolis?.
The strength and possibilities of this marketing strategy are being increased by digital technology thanks to easy access to location data through social media and mobile devices.
How it works
➥ Customer information is obtained for a geo-marketing strategy from a variety of sources, including online purchases, mobile devices, club cards, sales leads, postal replies, subscriptions, warranty cards, and outside sources?.
➥ Digital maps that may be focused on various qualities, such as zip codes or street maps, can leverage this data that is housed in corporate databases.
➥ The information is then examined to achieve certain business objectives, such as discovering current clients for a fresh campaign or locating geographical variances in outcomes for ongoing promotion.
➥ To pinpoint the most important prospects for market strategy, market analysts might employ a variety of analytical techniques and related data sets. They can export this data for other decision-makers to evaluate.
Types of Geo-Marketing
▶️ Geotargeting?: Instead of utilizing a customer’s GPS position, marketers utilize a web browser’s IP address to target potential consumers. Geotargeting has a drawback in that; IP addresses only give a rough indication of location, making it challenging to target a particular area.
Consequently, geotargeting is best suited for wide geographic areas like a whole city or state, whereas geofencing is advised for initiatives that require more precise targeting.
▶️ Beacons: Beacons are tiny gadgets that use Bluetooth to wirelessly receive position information from any nearby mobile device, enabling even more accurate targeting than geofencing.
By pointing customers to things they are probably interested in, the data acquired by marketers improves in-store experiences for customers.
▶️ Geoconquesting?: Geoconquesting is a geomarketing approach that employs a geofence to attract customers away from competitors.
A geofence is created around your competitor’s store instead of one around your own, and potential customers are targeted with alluring offers to entice them to your establishment.
▶️ Geofencing?: The advantage of geofencing is that it enables more immediate and relevant communications utilizing time-limited marketing techniques.
Geofencing is a helpful tool for brick-and-mortar businesses like restaurants and stores as it works best for limited areas like certain streets or neighborhoods.
Quick Fact: Statistics on geomarketing
➤ The world’s population of thirty percent already makes use of location-based marketing services⚡.
➤ Customers indicated they would want to get location-based alerts from brands eighty percent of the time.
➤ Consumers believe they will give their location seventy percent of the time if they obtain anything worthwhile.
➤ The click-through rate of local search optimization is now twice as high as that of traditional advertising.
➤ Approximately seventy-two percent of customers claim that if a firm has a physical site close to them, they often follow through on a call to action?.
➤ Customers claim to use their mobile devices to look for local information in sixty percent of cases, with forty percent of those searches taking place on the go.
➤ If you use geomarketing, customers are twice as likely to visit a store after viewing an advertisement.
Pros and Cons
➔ Local Optimization: Your communications will be more timely and relevant thanks to this, and search engines utilize these factors to rank local companies.
➔ Improved Data: In the event that clients come to your establishment as a consequence of your efforts, geomarketing enables you to get useful analytics.
➔ Customization: You may also use geomarketing data to tailor offers to your consumers’ preferences.
➔ Cost-Effectiveness: You may maximize the use of your marketing budget with the aid of geomarketing.
➔ Opt-In Requirements: For location-based advertising to operate, users must have location technology enabled on their phones, and people with privacy concerns opt out often.
➔ Non-Smartphone Users: A sizable portion of the world’s population still does not own smartphones, which means they are ineligible for location-based marketing targeting.
➔ Ineffective Targeting: Having a sizable audience in a certain area may seem tempting, but it does not always translate into success.
➔ Ineffective location data: The accuracy of a mobile device user’s location data may be impacted by a VPN that reports a different location than their actual one.
Applications and Advanced Strategies for Geo-Marketing
➡️ Geomarketing for OOH: Spotzi and other geomarketing systems may pinpoint the regions of a city or nation that have the best chance of providing the target audience with exposure to an out-of-home (OOH) campaign?.
Insights can assist firms in selecting the merchandise that will best target their desired clients.
➡️ Geomarketing for E-Commerce/Retail: Understanding the geographical components of e-commerce or retail marketing can be helpful in increasing traffic to your actual shop. It is particularly beneficial for companies whose goods or services are bought while on the road.
For instance, if your company is based in Hawaii and does not offer to ship to other regions of the United States, you should concentrate your marketing efforts on Hawaii’s locals and visitors.
➡️ Geomarketing for Social Media or Mobile Advertising: Businesses may evaluate and retarget customers who visit their stores and OOH audiences using geomarketing solutions?.
In-depth demographic and consumer behavior information may be integrated with Spotzi’s mobility data to produce meaningful insights into any audience or clientele.
➡️ Geomarketing for Market Research: Growth may be a dangerous decision; thus, it’s important to anticipate the demands and preferences of the target market’s inhabitants?.
By profiling locals and tourists from any location, geomarketing information may help with market research.
Trends and examples
To spread awareness and solicit donations for the victims of the Nepal earthquake, Oxfam used location targeting. To entice people to give, the charity staged events and featured the faces of the victims.
The use of location data by Outback Steakhouse to provide customized advertisements to potential consumers close to its locations increased restaurant visits.
Timberland recruited outdoor enthusiasts who lived close to its businesses to increase foot traffic.
Coach used a cost-per-visit model, location and audience targeting, and other strategies to increase in-store traffic and engagement. Thirty-one thousand visits and a 16% increase in engagement were the outcomes of the campaign.
Toyota increased visits to particular dealerships that are likely to generate sales by combining audience and location targeting with a cost-per-visit model. During a month, the campaign generated 1,200 visits.
No Kid Hungry
The campaign No Kid Hungry earned $1 million by using location and audience targeting to promote dining and donations at partner restaurants, which led to 129,000 visits.
FAQs on Geo-Marketing
How does geomarketing operate?
With the use of location-based marketing, businesses may specifically target customers with online or offline messaging based on their precise geographic position. Marketing teams may target customers based on criteria such as proximity to a business, local events, and more by using location data.
What benefits does geomarketing offer?
Because they offer a wealth of information about how these customers move between stores, where they pause, and where they make purchases, geomarketing data are particularly helpful for understanding customer behavior and purchasing habits.
What function does geomarketing serve?
You may examine your markets and see your company’s statistics using geomarketing on a modest scale. Data that is both internal and external and has a spatial reference form the basis of geomarketing. A Geographic Information System is utilized to use and analyze this data on digital maps.
How to perform geomarketing?
There are two methods you may go to segment your audience for geomarketing. Then, you may group them depending on their location, nation, city, or ZIP code. But you may also make use of geofencing. In this manner, you may utilize the user’s GPS data to start an action, such as sending notifications, messages, or alarms.
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