Marketing comes in a wide range of forms. From traditional approaches, like billboards and leaflets, to digital-first strategies, like social media marketing and search engine optimisation (SEO), there are a lot of paths you can explore.
Zooming out from these specific techniques, there are also different ways of approaching both traditional and digital strategies. One such method is location-based marketing, and it could be the key to transforming your brand’s success.
What is Location-Based Marketing?
Location-based marketing does what it says on the tin: it utilises strategies to target users in specific locations. Also known as local marketing, businesses and retailers use this more focused approach to hone in on relevant areas and deliver targeted, personalised content marketing to nearby consumers.
Let’s say, for instance, that you’re a dental retailer launching a new oral health product range in Birmingham, or hosting a pop-up event to promote your brand. Advertising to a random, nationwide audience means that you’re likely to reach a lot of people who aren’t in or near Birmingham, and probably won’t be interested in your event. This wastes your money and results in poor campaign performance.
Location-based marketing, on the other hand, offers the chance to specifically target people in Birmingham. You might do this by carrying out your own localised keyword research and targeting, or by working with a specialist dental marketing agency that has existing insights into both industry and location-specific campaigns.
The outcome? Rather than wasting your budget on a poorly planned strategy, you’re in control of who you reach, making it easier to tailor your marketing to suit your end goals.
Different Types of Location-Based Marketing
Location-based marketing can be broken down into different approaches. These include:
- Geotargeting: Targets a broad demographic of people based on a shared location, such as a town or city (often done by tracking IP addresses). It’s ideal for advertising local events, new shop openings, or area-specific discounts.
- Geofencing: Creates a perimeter around a specific location, such as a shop or event area. When a user comes within range, it triggers an ad (or other form of marketing) on their smartphone.
- Proximity marketing: Uses WiFi and Bluetooth to target users within a very close range to your business, such as when they’re actively inside your shop or business premises.
- Geoconquesting: Creates a perimeter around a competitor’s location, so that you can target them with marketing and entice them to switch to your business.
- Social media targeting: Utilises social media profile information and platform marketing tools to target users based on their pre-set location. Instagram, X, and Facebook are popular choices.
For retailers, location-based marketing can be particularly effective when promoting new store openings, seasonal sales, in-store events, or click-and-collect services. By focusing on shoppers within a specific catchment area, businesses can drive more relevant traffic both online and increase footfall in-store.
Imagine a homewares retailer opening a new store in Leeds. Rather than advertising nationally, they could use location-based marketing to target shoppers within a specific radius of the store, promoting an opening event, exclusive discounts, or click-and-collect services. This helps increase awareness among consumers who are actually in a position to visit and buy.
Geotargeting and social media targeting are the two most common forms of location-based marketing. They’re great starting points for localised campaigns, too, and can help you explore the efficacy of localisation without investing in more tech-heavy approaches.
Why Is Location-Based Marketing So Effective?
Location-based marketing brings a vast and varied range of advantages to digital marketing strategies. Let’s take a closer look at some of the most beneficial.
Personalised Marketing Campaigns
Localisation puts your campaign at a massive advantage by allowing you to personalise content. 71% of consumers don’t just want personalised content but actively expect it from your brand, making this a pivotal point in terms of marketing success.
By personalising based on location, you can publish highly relevant content that’s actually useful to your audience, showing them events and shops they can visit.
This, in turn, leads to increased engagement. Clicks increase, and conversions rise, helping you see a healthier return on investment (ROI) for your marketing.
Gain Qualified Leads
Localised strategies are essential for capturing more qualified leads. These are the consumers who are in a position to engage with your business and convert, making them the most coveted audience for any campaign.
Let’s use an independent fashion retailer in Brighton as an example. Consumers based in Brighton are far more likely to visit a seasonal sale, attend a launch event, or use a click-and-collect service than those in Manchester or Edinburgh.
By focusing your efforts on people within the right geographic area, you naturally filter out those who are unlikely to convert. This means your budget is spent reaching audiences who are not only interested in your offerings but also able to act on them.
Generate Useful Data
An often underestimated benefit of localised marketing is data generation. By tracking users based on geographic data, you can start turning raw numbers into useful insights.
For retailers, this data can provide valuable insight into which locations generate the strongest engagement, footfall, and sales. Over time, these insights can help brands make more informed decisions about marketing spend, store locations, and future expansion plans.
You might, for instance, spot that users in cities are more likely to convert than those in towns. This could mean that focusing your business strategy on city-based marketing and locations is the way forward.
The more specific data you have, the more useful it is to your business. Use insights from your local marketing campaigns to drive your next steps and streamline your future strategy to increase ROI.
How to Implement Location-Based Marketing
Location-based marketing doesn’t need to be overly complex. With the right approach, you can start small, test what works, and scale your efforts over time. Here’s how to get started:
- Define your target locations: Start by identifying where your ideal customers are. This could be specific cities, towns, or even competitor locations, depending on your goals.
- Choose the right channels and tools: Decide on the platforms you’ll use to reach your audience with location-based marketing. Tools like Google Ads and Meta Business Suite allow you to easily set geographic parameters for your digital campaigns, for instance, while leaflets and billboards are more traditional options.
- Conduct localised keyword research: Tailor your SEO and PPC strategy to include location-specific search terms, helping your business appear in relevant local searches.
- Create location-specific content: Adapt your messaging to reflect the area you’re targeting. This could include referencing local events or areas in your community to make your campaigns more relatable for your audience.
- Set up and test campaigns: Launch your campaigns with clear geographic boundaries, then monitor performance closely to see what resonates with your audience.
- Track performance and optimise: Use analytics to assess engagement, conversions, and ROI. Refine your targeting, messaging, and channels based on real data to improve results over time.
Remember that location-based marketing isn’t a one-and-done strategy. It takes time to plan and implement a successful campaign, so don’t rush the process.
Final Thoughts
Marketing is about more than spending a budget. It takes strategy, data, and experience to build a standout campaign, and location-based marketing gives retailers a powerful way to connect with nearby customers and drive measurable results.
If in doubt? Work with a marketing agency, and they’ll get your localised campaign off the ground.
