Location-Based Advertising – A Comprehensive Guide

Picture this: You’re walking down the street, and suddenly, you receive an ad for your favorite burger joint just around the corner. Sounds too good to be true, right? Well, it’s not! 

Thanks to location-based advertising, businesses can deliver personalized and relevant ads to potential customers based on their location. This approach not only benefits businesses but also provides a more engaging and convenient experience for consumers.

What is Location-based advertising?

Location-based advertising (LBA) is a type of advertising that utilizes a mobile device’s location data to deliver targeted and relevant advertisements to users. This form of advertising allows businesses to reach potential customers with customized messaging and promotions based on their location, which can include their current location or their previously visited locations. Location-based advertising uses GPS, beacons, Wi-Fi, and other technologies to determine a user’s location and then delivers advertisements through various channels such as mobile apps, mobile websites, and social media. This approach enables businesses to increase their visibility, drive foot traffic to physical stores, and engage with customers in a more personalized and effective manner.

If you want to learn how location-based advertising is revolutionizing the way businesses connect with customers, and how it can benefit both businesses and consumers, then keep reading this article!

Understanding Location-Based Advertising

Using various technologies, including GPS, Wi-Fi, and beacons, marketers can determine a user’s location and deliver personalized ads to their mobile devices, smartphones, and desktops. 

This type of advertising enables businesses to target potential customers with customized messaging and promotions based on their current or past locations. For instance, people on the go might receive location-specific mobile ads when passing by hospitals, shopping malls, pharmacies, or gas stations. 

Imagine you’re walking past a coffee shop, and you receive a push notification on your phone, saying, “Get 10% off your first order at this coffee shop.” The notification will only be triggered if the user is close to the coffee shop’s physical location.

This strategy is an excellent example of local marketing and helps boost businesses’ visibility, attract foot traffic to their physical stores, and connect with customers in a more individualized and efficient way. 

Furthermore, location-based advertising can showcase ads that align with a user’s location, even when they travel to a different country.

How Many Types of Location Based Advertising Exist?

There are three types of locatıon based advertising exist. These are Geofencing, Beacon marketing, and Proximity marketing. 

Geofencing

Geofencing is a location based advertising technique that creates a geographic boundary around a specific area, such as a shopping mall or restaurant. Geo fenced content is designed to make our lives easier. For example, if you fly to Germany, you will encounter news of that region on social media. Naturally, the content of the advertisement may also be in German. 

Geofencing can use GPS, wifi, or cellular data to understand if the user is within range. For example, when we use a VPN service, we encounter advertisements for that location. Also, we may call Geo-targeting. Geofencing is advertising in a more extensive area than Geo-targeting. Geofencing using fence technique, geo-targeting using wifi, IP, GPS. Geo targeting works for more specific target and specific small area. 

Beacon Marketing 

Beacon marketing sends targeted advertisements or messages to people within range of the beacon. For this, it is a location based advertisement-sending technique that uses small and low-power Bluetooth devices called beacons. The markers are in shops, museums, concerts, events, and cafes.

As soon as the smartphone is within the scope of the beacon marketing, the beacons send a signal to the device intended to open an application and display the notification. In this way, targeted messages or promotions can be sent to the user or potential customer. In addition, the digital advertiser must use beacon marketing responsibly and transparently.

Proximity Marketing 

Proximity marketing is when the user receives personalized advertisements based on proximity to a particular location. They use wireless technologies such as Bluetooth, wifi, and NPC in proximity marketing that way you can target ads to the right people

For instance, using proximity marketing to contact consumers close to a business can pique their interest. This method seeks to raise the percentage of customers who make purchases and users who use the product. For another example, starbucks or another coffee shop can give free coffee with proximity marketing. 

How to Run Location-Based Advertising

Identify your target audience and identify the areas they will visit frequently. For example, if you sell table tennis rackets, you can target table tennis halls and areas where table tennis championships are played. Companies can use platforms such as Google ADS, Facebook ADS, TikTok ADS, Propeller ADS, Linkedin Ads and more.

It would be best if you attracted your target population, so you should make use of one of the filtering tools. Take special care to ensure your advertisement will garner attention and strike a chord with the people you intend to reach. Put in an offer for the ad positioning once you’ve determined your spending limit. Advertising targeted to a specific geographic area is essential for expanding a business’s prospective consumer base and boosting brand identification in that area.

Google ADS

Google Ads is an essential tool that allows you to determine a specific geographical area thanks to its location determination tools such as city, country, and zip code. With the right ad campaign you can reach people within a particular area using location targeting. Use keywords suitable for your target location and product in your campaigns. Use extensions that show your business phone, address, and business hours.

Facebook ADS

Facebook Ads is a locally-based advertising platform that allows you to advertise in a specific geography using factors such as city, region, and country. Location targeting, use of location-specific language, and location-specific promotions are essential.

TikTok Ads

TikTok Ads is a relatively new advertising platform compared to Google Ads and Facebook Ads. Its popularity among advertisers is also increasing day by day. As in Google and Facebook, advertisements are determined by considering location, country, state, zip code, and city factors.

Propeller ADS

Propeller Ads is a locally-based global ad network that allows you to target based on a specific region, country, city, or geographic location. Local based advertising, is going to help to your find more customer, and clients. Propeller Ads one of the tools can help you for this. 

Businesses That Should Invest in Location Based Advertising

Advertising based on location data is essential for any kind of business, big or small. There is no question that certain companies can use this kind of advertising to their advantage to bring attention to their operations. Hotels, performance venues, stadiums, restaurants, merchants, neighborhood businesses, delivery services, and the food industry are a few examples of the types of establishments that fall under this category. 

Grocery Stores

There is a significant need for location-specific advertising in supermarkets. Companies such as Tom Thumb and Walmart Neighborhood Market use location based advertising, for instance, to entice customers in particular regions to shop at their stores by offering specials and price reductions.

Shopping Malls

Shopping centers often employ local-based advertising strategies to lure prospective consumers from the surrounding area and boost their stores’ foot traffic. However, retail stores can use their own local base advertising at the shopping mall.

Retail Stores

Retail establishments also rely on advertising at the neighborhood level to bring in consumers. For instance, retailers like Zara, H&M, and Mango extensively use this form of advertising to attract consumers and promote various types of promotions, discounts, and vouchers.

Top 5 Benefits to Expect with Location Based Advertising

1. Target Audience

Targeting the audience based on their location is one of the most crucial aspects of location based advertising. Therefore, businesses establish the objective in a particular region by using the position of the users; this enables the advertisement to reach a specific population within that region directly.

2. Customer Engagement

Advertising based on location can help businesses improve their involvement and communication with the people they are trying to reach, including consumers and potential clients. The consumer can engage with the company through special offers such as promotions and reductions made available by businesses.

3. Increase in Conversion Rate

By choosing its target population from those who are more likely to take action, local base advertising contributes to maintaining a high conversion rate. For instance, if you purchase a product from that store because of local advertising in a particular location, you have contributed to the increase in the conversion rate. This is because the local advertising brought you to that location.

4. Increasing Brand Awareness

One of the objectives of contextual advertising, similar to the goals of other types of advertising, is to increase consumer knowledge of and confidence in the company. On the other hand, the purpose of this is to acquire new clients through the use of special deals and reductions.

5. Relevant Content

Location based targetinging allows businesses to deliver relevant content to their customers. Thus, it aims to reach the right audience in the right place at the right time. The percentage of engaged users will give your potential ad quality ratio. The higher your rate, the lower your impression and click cost.

Hire Now a Web Agency to Boost Your Location Based Advertising

Factors such as experience, communication, cooperation, and innovation should be considered if a company specializing in this field is an agency. As Mediaboom, we would like to help you with this as an experienced company in location-based advertising. As a company specializing in digital advertising strategies, we want to bring you to the fore in your local advertising strategy. 

Local-Based advertising is an important, powerful tool for you and for your company. Not just for big companies, small companies can use local-based advertisements. LBA can help you connect with your customers and, it helps to find more customers for you. 

Because of our extensive experience in various fields, including search engine optimization and advertising via social media, we can provide you with the highest level of support. Get in touch with the Mediaboom team immediately and we will benefit you from our extensive industry expertise.