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Location-Based Marketing: Why it's the Marketing Strategy You Need!

What is Location-Based Marketing?

These days, this type of marketing is based on the fact that almost every person refuses to leave the house without their phone (Thank goodness for our addictions to technology!).

That, coupled with the knowledge that most of us are happy to share our location with many of the apps we use, means our locations can be tracked through the portable computers we call phones. According to Urban Airship 62% of smart phone users opt-in for location sharing, and 51% opt to receive push notifications, which mean most apps can reach half of their audience through location tracking and well-timed phone alerts.

Hence the name ‘Location-based’ marketing.

This form of marketing, according to Verve, generates 100% more user engagement than generic ads. And According to the Good Push Index, response rates are greatly improved by up to 5x.

Great statistics, right?!

That alone is enough to make you wonder how on earth you can jump on this marketing bandwagon.

Read on to find out! 

Why is this Form of Direct Marketing so Effective?

First of all, it has already been said that the high use of phones, plus the willingness of users to share their locations is part of what makes it effective - it's like carrying little billboards in your pockets. But it's the HUGE relevance of those little 'billboard' ads that makes it so useful.

Say you’re walking alongside a beautiful river in a little countryside town and you check your phone to find an ad for Kmart despite there not being a store within a 100km radius, and despite their lack of an e-commerce store. Faced with this ad you’re going to say to yourself:

“No thanks.”

And the ad will be completely ignored, making it a total waste of advertising.

Location-Based Marketing Creates Targeted, Personalised Ads

Location-based ads apply to the location and circumstances of the consumer, ensuring waste of advertising does not take place. No waste = big savings.

You definitely want to use to these personalised ads, not just because of the savings, but because they encourage a lot more engagement than general ads:

  • 78% of consumers actually like targeted ads (Adobe)
  • 54% find personalised ads more engaging (yahoo)
  • 45% find them more memorable (yahoo)
  • 46% install ad blockers due to ads being irrelevant (IAB UK Study) - So make your ads relevant!

Another one of the successes of location-based marketing is that it works in real-time which highly enhances the relevance of the ads. This is 10% creepy and 90% awesome marketing!

There are some stores that have ‘beacons’ which pick up your approach. You’ll be strolling down the street and next thing you know, there’s a notification on your phone saying:

“Hey Joseph, you’re near our Queen St store. If you pop over now, we’ll give you a 10% discount on any purchase”.

Starbucks employed this very same tactic and claimed to have fabulous results. This was because it was picking up on people at the right moment when they were so easily tempted due to being in a range of their store.

You may have different goals when it comes to marketing your business, so this particular tactic might not work for you as it did for Starbucks. Luckily, there are many different location-based marketing strategies that you can employ. 

Different Targeting Approaches:


Location parameters are established in the way that best suits your business through the use of a location-aware device and service. When people come within this ‘fence’ they can be targeted by your ads, hopefully resulting in leads to your business.

You can create geofencing that targets people who are physically close to your business, or you can target them if they’re in areas where they might need your product/service. E.g People at the beach might be tempted by ads for boats or surfboards.


This is super sneaky, and super awesome. The name of the game is “converting competitors’ customers into yours”. The name is a work in progress. The aim is to target people when they are physically near your competitor’s store - at a moment when they might be after your type of product or service.

Hyper-Contextual Targeting

This is a better type of marketing for those that don’t have a physical store for their products because you have no geological location that you’re directing people to.

This targeting works by evaluating local data to ascertain the possible needs of the consumers in that area. For example, in a farming area experiencing a drought, people might be easily targeted by ads for irrigation.

Location-Based Marketing Can Help You Get Fantastic Results 

With the twice the user-engagement of generic ads, and the personal preference of consumers, why wouldn’t you embrace location-based marketing? Create relevant, personal ads that target consumers at the best possible moments thanks to our constant cell-phone usage.

Contact The Web Company to talk about starting location-based marketing today!


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