In the late ’90s the world wide web drew small businesses by affording them worldwide reach. No longer were they confined to local markets, constrained by advertising budgets or business location.
However, it still left some businesses thinking the web was not for them. [bctt tweet=”What is the advantage of a worldwide audience to a small town cafe?” username=”i3ntrepreneur”] To these businesses the world wide web held no interest, to them it is the local, or even the Hyper-Local web where the seams of gold lie.
Now that the web has gone social, gotten a lot more personal, the online focus for business has started to shift too. The social aspect of the web has brought with it location. It is now possible to identify where people are due to their social footprint. Local business can now leverage information to target customers based on their location.
Location based services are probably one of the hottest trends to come along in a great while. It is one of the major trends in the digital advertising and marketing world. Location based marketing helps local businesses leverage the local or hyper local web to increase foot traffic, bringing consumers closer to their physical point of sales.
In short, location based marketing is the art of engaging your customers and prospects using location based services to drive loyalty, word of mouth marketing and referrals.
Location based marketing has become very important for businesses these days. Search engines such as Google, Yahoo and Bing are already using location features as to help narrow down search results to the searcher’s location. They are looking to localize searching as to make it more relevant for the searcher and draw more local advertising.
While most location-based marketing services that interact with mobile devices such as Facebook Places and Foursquare aren’t exactly mainstream, they are seeing tremendous growth. For marketers wanting to be where the market is trending, mobile and social is definitely a place to keep a keen eye on. When designing your social media marketing strategy and search engine marketing strategy, this new feature should be included.
A new study performed by Pew Research found people now rely on the Internet as the leading source of information for local businesses, ahead of any other medium. Location based marketing is especially useful for FMCG brands, apparel companies, malls, restaurants, cinemas, coffee shops, auto dealers, etc. who have physical as well as online presence.
In his keynote address on real-time marketing in a hyper-connected ecosystem, at this year’s edition of ad:tech in New Delhi, Shiv Singh, Global head, Digital, PepsiCo, said that mobile is exciting because it connects the digital and physical worlds. He observed that the time is right to go deep on location and mobile marketing, considering the social activity that takes place online using the mobile medium.
Location means wherever people are. Location based marketing is the integration of people, places, and media, and it’s more than check-ins, the latest deals, and Foursquare. Location based marketing brings along a number of advantages for marketers that they need to be aware of:
- Getting the attention of your target easier. Use location-based marketing to differentiate your business from your local competitors.
- Increasing Impulse Buying. The real time delivery of advertising prompts benefits of immediate response. Example: Get 50% off on shoes if you come into our store in the next 30 minutes.
- Developing stronger one-to-one relationship marketing. Consumer purchasing history can be examined, thereby enhancing future marketing messages.
- Increased psychological nurturing. It helps in building brand recognition and loyalty among your customers by giving them more attention.
- Improving one-to-one relationship marketing. Consumer purchasing history can be examined, thereby enhancing future marketing messages.
When people get something in return for engaging with an entity, they talk about it. With Groupon, you’re getting a “great deal” and you want to share that with your network, and when Foursquare merchants reward check-ins with coupons (on top of the badges and mayorships), there’s a definite answer to the “What’s in it for me?” question. It’s certainly wise for any marketer to keep an eye on ways to engage their consumers in this new platform.
If you would like to discuss location based marketing in more depth and how it can work for your organization then please get in touch.