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.
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.
- 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.
- Don’t be creepy! Make sure consumers know how you have gathered information.
- 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.