What is Location-based Advertising? Everything You Need to Know

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Location-based advertising is a means of making marketing more relevant and contextual for customers.


The internet is a game-changer in advertising. Because of the internet, even the smallest business can reach a global audience. However, sometimes your widespread advertising needs a personal touch.

Targeted and customer-oriented advertising is hands down more effective than broadcast advertising. It’s no wonder your cookies are all the fuss nowadays in internet advertising.

Even so, there are still many forms of internet advertising. The type you settle on depends on your business’ needs. You can use a single form or a combination of these techniques to achieve the desired results.

Our primary interest today is location-based advertising. Many companies have embraced this form of targeted marketing since it tailors advertising to an interested demographic. Industry giants like Starbucks and even Coca-Cola have some sort of location-based advertising in their marketing campaigns.

In this piece, we’ll elaborate on what location-based advertising is. We’ll also talk about why location-based advertising is so relevant.




Local Based Advertising: The Definition

As to what local based advertising is, the name says it all. The simplest definition would be advertising based on location. However, that definition doesn’t even begin to cover the full scope of this type of advertising.

Local based advertising is made possible because of our smart devices and GPS. This advertising utilizes location data from our smart devices to convey messages and ads based on potential customers’ locations.

In a world drowning in ads and promotions, this advertising connects with customers on a more personal level. Giving it an edge over most forms of advertising.

At the core of this type of advertising is mobile geodata. So companies can track movement patterns of customers over a period. This tracking can help identify behavioral patterns to help companies better understand their customers.

This form of advertising is etched in relevance. That way, your ads won’t seem like a bother but more of something the potential customer actually needs. The data you get is also useful in your overall organization of marketing campaigns and other aspects of your company operations.


The Tenets of Location-Based Advertising

We can broadly define the tenets of location-based advertising as follows:-

Local Search Advertising– It’s very common for people to tie locations to their mobile internet searches. Take, for instance, “Nearest café in Brown Street.” Companies find it wise to establish their locations on these virtual maps.

That way, when search results show up, the companies show up too. The potential customer can get everything from prices, open hours, and reviews.

Geo-Targeting– this geo-targeting enables ads to show up to consumers in the radius of a retail store. This advertising is based on the data of the proximity of a consumer’s device with the store.

Geo-targeting is also useful for establishing consumer behavior. For example, after a certain consumer visits your clothing shop, the next stop is the cosmetic shop. It would be wise to have a cosmetics section in your clothing shop for better sales.

Geofencing– Geofencing triggers a whole virtual experience for the consumer once they close a particular boundary. It may trigger push-notifications, messages, and align ads on apps and even social media to the location.

Beacon technology is what makes geofencing possible. That way, it’s like the company can “see” the consumer.

Behavioral targeting– This could arguably be the most important factor in local-based advertising. What you do and where you go over time establishes a behavioral pattern.

Mobile devices are quick on tracking your behaviors with time. These behavioral patterns enable only relevant ads to reach the consumer. For instance, strict gym-goer gets ads on supplements and exercising equipment.


The Importance of Local Based Advertising

The business world is very competitive and companies aren’t holding back on marketing endeavors. The internet and technology have made marketing easier and much more effective.

However, that doesn’t mean you should sit back and relax after you’ve established a website and social media profile. Stuff like SEO and location-based advertising is what will give you that competitive edge in this digital race.



Here’s why location-based advertising is so important:-

This form of advertising is relevant and contextual. That way, you won’t be advertising to the wrong people and getting zero returns.

It helps you grow your local customer base. Local customers are crucial to the success and growth of your business. This is because they are more likely to be repeat customers and brand ambassadors through referrals.

LBA is cost-effective. You won’t break the bank, trying to integrate this advertising into your marketing strategy. The most you’ll spend is on hiring a professional to help you get things rolling.

This advertising helps you better understand your consumers. That way, you can tailor your products or services to meet their needs. Also, you can adapt things like opening times or when to have discounts and sales for the mutual benefit of you and your customer.


The Issue About Privacy

As with any data-gathering technology, the privacy issue also comes up with LBA. There’s the question of whether LBA’s constant tracking is a breach of consumer privacy.

The UK and USA recently defined the scope of how much consumer data should be used for marketing activities. The countries stipulated that the date businesses acquire should not undermine the privacy of the consumer.

However, it is the onus of the companies to establish measures that don’t contravene the consumer’s privacy. In doing so, they win the confidence and trust of consumers and engender increased customer interest.

Fortunately, LBA has helped improve customer-business relationships through personalization. So the question of data privacy is really a catch 22 for governing bodies. However, so far, there have been few if no customer complaints regarding LBA.


What Are You Waiting For? Embrace Local Based Advertising

The earlier you embrace location-based advertising, the better it is for your business. LBA puts your business in a better position to attract local consumers. You can also cash in on any visiting consumers and also make a killing.

Today’s LBA is a huge leap from the LBA before the internet and smart devices. However the past LBA techniques are still effective, so you can try both the modern and traditional LBA for the greatest effect.





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Source: Business Matters Magazine

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