Location Location Location!

Location based advertising refers to a fairly new marketing trend where consumers are sent ads that are location specific through the use of tracking their location via the GPS in their mobile phones.

Over the last few years the amount of businesses adopting this marketing channel has been increasing steadily. A recent study conducted by Factual found an annual spend now $17.1 billion in the US alone, which is expected to increase more to $38.7 billion by 2022.

Why is this so effective? Simple.

  • Ads can be personalised. If a consumer already interacts with your brand, then sending a personalised message based on their known preferences can be a great way to entice a sale.
  • Timeliness. Through location advertising, stores are able to send promotions or provide information instantly as a customer walks into their store.

Like any other type of marketing campaign, it is important to remember to track how successful it is and whether improvements need to be made, and location advertising is no different.

location example

Example of location based advertising from Starbucks (Source)

Forbes listed 15 different things that should be considered in a location advertising campaign and you can check out the list in full here, however I’ve narrowed it down to the top three things I believe are most important.

  1. A call to action can really improve sales. If your ad has a specific and personalised call to action, consumers are more likely to enter the store and a sale can be made.
  2. Don’t be creepy! Make sure consumers know how you have gathered information.
  3. Provide value to the consumer. If its a generic ad, it might go to waste.

What types of location based advertising have you come across? Do you think they are effective tools for businesses or just another annoying invasion of your personal space?

If you want to check out some cool location based ads, click here.

 

 

12 thoughts on “Location Location Location!

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  1. I think that location based advertising has got great potential however i also believe that there is a fine line that brands need to be aware of not to cross. I know for myself i feel like it is an invasion of privacy sometimes even when my friends send me a message asking what I’m doing at a particular place because they’ve tracked my location on snapchat or the find my friends app, so to think a company who i have no personal connection with could know where i am is a bit creepy. Having said that, actions such as what starbucks is doing is a great way to attract consumers! Brands just need to be aware and ensure that whatever advertising they are presenting to consumers is very relevant and effective – and doesn’t come across as stalkerish or creepy 🙂

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  2. Surprisingly, I haven’t actually come across any location-based ads, although maybe I’m just unaware of it… I agree with Bella’s comment above that marketers need to be careful not to invade consumers privacy but also agree that it could be a successful tool in that ads can be super targeted.

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  3. I think location-based marketing is amazing. I know personally I would definitely use a promotion if I was close by. Whist i’m out and about, I usually think about the places that have happy hours or deals on at the time, so this just solves that problem for me right away.

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  4. I’ve actually never experienced any of the location-based ads but personally, I think it’s great! The Starbucks example above is amazing, it can really help attract consumers. It is so personalized that the consumers would feel like they are special in a way and it could really help increase sales. However, you are right about how marketers shouldn’t take so much advantage of this that it becomes creepy!

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  5. Haven’t received any location-based advertisement yet, but I will prefer these advertisements than other advertisements that are highly unrelated to me, as you mentioned above, it is personalized, I think this is very important, as nowadays, there are too many advertisements that are irrelevant to you. Ads that are based on your preferences would be more effective and less annoying.

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  6. Great blog Dov! I think location based advertising is really great for businesses as long as the customers are aware and can opt out if they don’t want to receive any further messages! It would influence me to go into a shop if it’s near me and made aware that there’s a sale or deal on, and if it’s personalised even better.

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