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Location-Based Mobile Advertising: A Step-by-Step Guide for Small Businesses
Small businesses the world over are always finding ways to bring in more foot traffic to their brick-and-mortar stores. With the advent of location-based mobile advertising, small-to-medium businesses (SMBs) are now able to target potential customers who are within arms reach of their store accurately.
If you are an SMB, and you’ve been struggling with your return on ad spend (ROAS) for your business, you need to start running location-based mobile advertising as soon as possible.
Location-based advertising (LBA) market is expected to hit nearly $15 Billion by 2018, according to a research report from Berg Insight, an analyst firm (source: eWeek.com).
To be able to tap fully into the LBA market and make it work for your business, you have to focus on three key elements.
Accurate, first-party location data
Deep knowledge of your consumer behavior
Compelling creatives
What exactly is hyperlocal mobile advertising and why is it so effective?
Location Based Advertising (LBA) allows you to vary your marketing message based on where your target consumers are geographically. Location-based services (LBS) allow you to tailor messages to any number of scenarios. For instance, retail locations, weather, vicinity of friends, and transport routes.
By knowing where your consumers are and how they usually behave, you can tap into their habits and also encourage them with offers and messages that make sense to them, which relate to their location.
It will be the most personal form of mobile advertising. You just need to use it correctly to achieve exceptional results.
To explain the effectiveness of targeted marketing with the right data, let’s consider the following simplified scenarios.
Scenario 1:
Imagine a tourist is walking through a shopping district while she is on a holiday. She is browsing on her phone, and sees an ad for 30% off lady’s handbags from your boutique. She hits the get location on the rich media ad. Your boutique shows 500 meters away from her and she uses the directions to get to your store.
Scenario 2:
It is near lunch time and someone is browsing his phone. He sees an ad from your restaurant less than 500 meters away from his office, with today’s special set lunch and a free desert coupon. Your restaurant has set up a contextually targeted ad, geo-fenced within a 1 km radius around the business center with offices. There is a “Call Now ” button on the ad and he makes a call directly to book a table.
These scenarios clearly show you how effective your ads can be if you focus on the key factors, target audience and hyper-local data. Mobile location-based marketing is effective because it is personalized, it reaches your audience timely, and it is very targeted.
Types and examples of location targeting advertising techniques
Mobile location-based advertising is a complex system. They require many parameters, and you need to leverage different information for reaching your target group efficiently. Some of the practices used are:
Hyper-Contextual Targeting
Hyper-contextual and location-targeted ads use data meaningfully to provide an exceptional experience to its target group. It uses hyper-local data to deliver contextual messages that are meaningful to the audience. This method is usually used to drive purchase intent.
For instance, crime in a certain suburb has risen recently and there have been cases of burglary reported. A home security installer can set up an ad which depicts a burglar trying to break into a house. The ad is pushed to a targeted audience within a 5 mile radius. For full impact, the banner ad will only be shown during the evenings.
The installer can set up a “Tap-to-Call function in the ad and can receive calls in the evening. This campaign uses hyper-contextual and location-based targeting to increase conversion rates.
Geo-Aware Targeting
Geo-aware advertising has been around since 2010. It can be deemed as the origin of location-based mobile advertising. It uses real-time location data supplied by the mobile provider. With this, you can display mobile ads to a possible customer who is close to a particular location.
When your target audience, i.e. coffee lover, is in the vicinity of your cafe, you can remind them that you offer coffee and it’s just around the corner. This type of ad can bring them to your store and make a purchase. You can even push the ad out 1 or 2 hours before office hour starts (hyper-contextual). For effect, you will need to have a better understanding of your target audience behavior, i.e. loves to drink coffee.
Place-Based Targeting
Place-based mobile advertisements use a certain area or location during a specific timeframe. Think of targeting sports-related ads during a football match in the area of a stadium for instance.
During a movie screening or a football game at the stadium, you can offer special giveaways to the fans. Couple with technology like iBeacons (a device that communicates with iPhones through Bluetooth for location services), you can determine the specific timeframe your target audience receives your ad content, which is when they enter the area. Once they check-in at the game or movie, they can receive special code or coupon to claim your offerings.
Geo-Fencing
Geofencing allows you to target users within a predefined area based on latitude and longitude information. It’s like a virtual “fence” is created within a certain radius to target users around your store for example. Usually, it’s used to drive foot traffic to your store within a shopping mall.
You may have many competitors within a shopping mall. Putting a geofencing ad out to your target audience may be the right move to drive more people to your store. You can create a targeted ad with a 500-metre geofence strategy with rich creative or offerings to attract them to your store. Make the message relevant, for instance, it’s almost lunch time, and you give out 10% offer for your time-limited lunch set offering.
Geo-Conquesting
Geoconquest is a targeting strategy that reaches out to and engages target users when they are physically in or around your competitors’ store. It is a relatively new geo-precise marketing tactic that is used to create loyalists by driving their competitors’ customer to their store.
Geo-conquest has been reportedly used by and most beneficial to sectors like financial services/insurance, telecommunication, and restaurant. By leveraging users current location, and external location cues like time and users state of mind, you can create a highly relevant and impactful ad content to achieve significant engagement level to convert competitors’ customers to yours.
