The Effectiveness of Location-Based Advertising Campaigns

Advertisers are always looking for new location-based advertising strategies to get customers and improve their media buying campaigns. There are many factors that can impact the success of an ad campaign. But for businesses that rely on customer visits to their physical stores, location is crucial.

The cost-effectiveness and precision of targeted programmatic advertising campaigns increased when advertisers began considering users’ locations. The purpose of this article is to examine the theoretical and practical aspects of location-based advertising. Defining location-based marketing and discussing its types and effectiveness will be our first step.

What is Location-Based Advertising?

A location-based marketing approach enables organizations to target consumers with personalized, granular messaging that is based on their physical location. Location data enables marketing teams to target consumers based on factors such as:

• Proximity to a store
• Events occurring in their area
• And more

Across the customer lifecycle, location-based marketing has been proven effective in attracting and retaining customers. Marketers can target specific customer segments with location-based marketing to improve customer experience. Particularly for a population that values instant gratification more and more, this is true.

How Effective is Location-Based Advertising?

Your business can reap incredible benefits from location-based advertising. It has been very successful at boosting in-store traffic and boosting brand awareness. Additionally, it’s relatively cheap compared to other forms of advertising. Online advertising has several marketing platforms, and PPC is one of the most useful.

You can use PPC to do location-based advertising with a PPC platform. There are a number of factors that determine the success of PPC campaigns. Consequently, you rely not only on location. Other factors are also affected by location. Below we show you those factors:

• A PPC location-based advertising campaign depends on the performance of keywords.
• The type of device plays a role in PPC Location Based Marketing Campaigns.
• Location-based campaigns are dependent on the hour of the day (HoD) in PPC.
• Metrics like Impressions, Clicks, Conversions, ROI, and more are important for PPC location-based marketing campaigns.

When it comes to PPC campaigns and location-based advertising, it is essential to track your campaigns from all sides. It is especially important if you want to achieve effective results. It is difficult to accomplish this without marketing tools. Thus, PPC Signal is the ideal tool to help with this.

PPC Signal uses a data-driven approach and informs you of any anomalies in advance without wasting time or budget. You can use this tool to track your campaigns regarding all factors related to the location from all sides. These factors are all incorporated into PPC Signal in the form of filters. You will receive useful information in the form of signals.

Here is a screenshot of PPC Signal’s dashboard:

We are now going to show you how to monitor your campaigns according to the location:

In the image above, all related signals are displayed when you click the Geo filter.

What are the Benefits of Location-Based Advertising?

Location-based advertising offers a variety of benefits, including:

Location targeting

Location targeting allows you to create ads that are relevant to a specific geographic area. It can help you reach customers in specific locations. This can be beneficial if your business is location-specific.

The use of location-based advertising can boost in-store visits. This is because it can be used to display ads to customers who are near a particular business or competitor. This can result in more relevant ads and better clickthrough rate (CTR). This also saves time by automatically removing irrelevant people from your audience (people who don’t live in the area).

Data offerings

Marketers can gain valuable insights into their customers’ shopping behavior using:

• Visitation
• Audience
• And trade area data from ad campaigns

This provides you with more data about your audience, including their locations and interests. It helps you build a better profile of your customers so that you can create more relevant ads in the future.

Enhanced targeting

Smarter marketing is driven by precision. You can target users based on their interests, demographics, and locations. This allows you to better define your audience and create more relevant ads. This means that your ads will be more effective, which can lead to better click through rates and conversion rates.

Enhanced reporting

You can see the performance of your ads on an individual level and track their progress over time. This allows you to make changes as necessary and improve your campaigns over time.

Cost-per-visit performance

How would it be if you only paid for results? The use of location-based advertising provides marketers with new performance models, such as cost-per-visit advertising (CPV). In other words, you only pay when customers come into your store. This improves your return on advertising.

What are the Key Types of Location-Based Advertising?

In recent years, the growth of connected devices has largely enabled location-based advertising. The internet seems to be infiltrating everything today: phones, cars, watches, etc. These devices typically collect location data and spatial information since they track their owners’ locations.

Based on this data, marketing teams can improve customer experiences and reach more customers.

Location-based advertising includes the following types:

Geo-targeting

Geo-targeting involves determining a user’s location and serving them personalized messages based on where they are. Customers who allow an app access to their location may receive messages and push notifications. This is based on their location or proximity to a store.

How it works:

Geo-targeting relies on IP addresses. Each connected device has a unique IP address that identifies it. Users can then be located based on their IP addresses by matching them with their country, zip code, etc.

Benefits:

A key advantage of geo-targeting is that it enhances the customer experience by personalizing it. You can target users based on similar needs in their local area, such as weather or local news.

Geo-fencing

In geo-fencing, a boundary is created within a specific area. When a target audience crosses that boundary, they become active targets for marketing strategies. Often, this means they receive content, offers, or other messages from the brand. Boundaries include areas around popular shopping centers where the company has a store, for example.

How it works:

The concept of geo-fencing relies on GPS technology to create a border. A notification or a message is sent to the target user whenever they cross this border.

Benefits:

• Using geo-fencing, marketers can target large areas such as malls and event spaces. The method allows marketers to target all users within a given perimeter. Geo-fencing has less granularity than other tactics. Nevertheless, it can be an effective tool when hosting a convention or capturing foot traffic.
• With geo-fencing, marketers can encourage consumers to engage with their products and divert them from competitors.

Beaconing

A beacon is an electronic device that uses Bluetooth or Wi-Fi to connect to predetermine applications. It connects to these applications within its range using Bluetooth or Wi-Fi. The use of beacons is effective for reaching out to existing customers in small areas. How it works:

The beacon sends a signal to your device so that your device can be prompted to receive content from a server. It could be a push notification, an email, etc. A sports stadium might, for instance, encourage its attendees to download its app in order to purchase tickets, concessions, etc. Beacons would be installed at the venue to recognize when a device with the application is within range.

Benefits:

• It is required that users opt-in and turn on Bluetooth in order to take advantage of this feature. Nonetheless, location-based targeting allows you to communicate directly with customers.
• Users can be tracked more precisely indoors by organizations. Marketers can thus target customers more specifically and gain a deeper understanding of their behavior as a result.
• These notifications can be received even if the user is not online.

Mobile targeting

Mobile targeting is the practice of marketing to consumers using their mobile devices. Typically, consumers avoid advertising. So marketers make their ads context-specific, based on:

• Time
• Device
• Or location

Benefits:

• Marketers can target users directly on their devices in order to provide a more personal experience.
• Targeted advertising tends to yield greater returns on marketing spend.

Geo-Conquesting

Location data is used in geo-conquesting to drive prospects away from competitors’ locations.

How it works:

In geo-conquesting, users in your competitors’ vicinity are targeted using GPS technology.

Benefits:

• Organizations can encourage users who are already seeking a product on the market to purchase from them rather than a competitor. This way they gain market share and gain new customers.

What are the Reasons for Using Location-Based Advertising?

Marketers and consumers can both benefit from location-based marketing.

Location-based advertising has the ability to deliver more tailored messaging to customers and prospects. This can help marketers grow awareness and cultivate relationships. Often, these ads result in less wasted spending due to their targeted nature. Customers are becoming increasingly selective about which brands they interact with. So this way they receive tailored offers at convenient times.

Marketers use location-based tactics for several reasons:

Increase immediate foot traffic

Using location-based marketing, local businesses can drive foot traffic by informing customers of their proximity and enticing them with offers.

Deliver more relevant ads

Location data can be used by marketers to create more relevant, personalized ads. The location of a person does not necessarily matter. Location data can also influence messages and timing. For instance, marketers may determine when to serve an ad when a consumer is on the train or commuting.

This may be based on an analysis that reveals the likelihood that they are more likely to engage with it. Besides influencing copy, location data may also influence creativity.

Drive consumers away from the competition

Marketers can gain market share by targeting users heading to their competitors’ businesses.

Create a better user experience

You can improve the user experience by targeting customers at the right time.

Location-based marketing requires marketers to consider their location along with their customers’ location. Localization tactics may not be appropriate for businesses located on streets with little foot traffic. The same goes for stores that are not at street levels, such as those in apartment buildings and hotels.

These stores should not only target people who are visiting the building to shop. Regular alerts may annoy those not interested in visiting stores and damage the reputation of brands.

Consider how these tactics will affect ROI before committing ad spend by evaluating your customer base and external factors.

FAQs:

Can you target ads based on location?

The location targeting feature allows you to select specific locations where you would like your ads to appear. Most campaign types allow you to customize where your ads appear. You can, for instance, choose whole countries, cities, or territories within a country, or a radius around a location.

What is the future of location-based marketing?

Over the past few years, location-based marketing has expanded, making it easier to reach out to customers who are on the go. It is expected that physical location-based marketing and the technology that powers it will continue to grow. As large brands adopt the technology and social media giants invest heavily in it, this trend is expected to continue.

Wrap Up:

As mobile technology improves, businesses are taking advantage of location-based advertising to target customers in specific areas. This type of marketing is especially effective for retail businesses. This is because it allows them to specifically target customers in the vicinity of their store.

Location-based advertising can be extremely effective for businesses, but it’s important to make sure the ads are relevant to the customer. If the ads are irrelevant or annoying, customers will likely ignore them.

Monitoring your campaigns from all angles is crucial if you want to achieve good results. It can be difficult to monitor campaigns without the help of a marketing tool. This is why PPC Signal is perfect for providing you with this information.