The old standby of Yellow Page print ads and local flyers simply doesn’t do the trick anymore. In today’s mobile society, it’s not surprising that one of the fastest growing advertising strategies is location-based advertising. To improve your marketing efforts, take a look at these five location-based advertising strategies:
5 Location-Based Advertising Strategies
What if a small business could advertise on a major website like ESPN? If you use PaperG, a creative ad company with technology that lowers the transaction cost for publishers, you might be able to turn that “what if” into reality.
Micro ads are making it feasible for small businesses to market their products and services on websites that were traditionally out of their reach. PaperG CEO Victor Wong says this will help “democratize the media business.”
For mobile advertisers, geo-fencing is providing a huge boon to large companies who want to receive a higher return on their ad spend (ROAS). A geo-fence notifies marketers that a customer is in the area. The idea is simple – you put a virtual fence around your store that is triggered when a specific smartphone user walks past the fenced area.
Keep in mind there are two different types of geo-location advertising. Geo-fences happen around a specific store, while geo-aware are territories that the company defines as hotspots for their marketing efforts, like a coffee shop putting a geo-fence around a book store. Geo-fencing ads can potentially waste a lot of money because it requires consumers to know about the product before receiving the ad.
Media Post estimates that at least 50 percent of consumers who go through a geo-fenced area must know about the brand first. Therefore, a business where only 10 percent of the population is aware of the brand will waste months showing ads to the other 90 percent of people in the area.
For many advertisers who pay per impression, this significantly reduces their return. However, a new breed of advertising technologies is emerging that may expand the field. Factual is one of these innovators. The company uses not only the geo-fencing location data, but combines that with extensive data they collected on users’ brand affinity and demographic characteristics.
While it is part science and part guesswork at the moment, this has the potential to allow a host of different ad networks to start geo-fencing targeted ad prospects. They aren’t alone; other companies like Moasis and PlaceCast are using intelligence tools to combine location and demographic data into one robust advertising platform.
This technique is one of the most controversial new strategies to emerge from location-based advertising. Imagine a criminal law firm putting a geo-fence around a bail bondsman office or local courthouse. That way, whenever users got within a certain radius of the bondsman’s office or the courthouse, the law firm sends a short mobile ad to consumers in the area.
Or if you want to be a bit more devious, you could put a geo-fence around your nearest competitor and provide a discounted service to capture their customers. Keep in mind this is where the legal issues come in. In the past, a number of advertisers have been sued for using brand name keywords – keywords advertisers pay for on Google to get found.
For example, E.G. Bank of America uses Chase as a keyword in their Google AdWords campaign. While the results of the suits for brand name keywords have been mixed, it won’t be long before this type of suit hits location advertising customers.
- Remote Learning
Retail outlets are entering mobile marketing to educate their audience. Just look at the new test Ford is launching with the help of Beacon Technology. Beacon technology is a wireless communication protocol that Apple set up for all iPhones and iPads. Ford is using Apple’s Beacon technology so that consumers’ phones can answer their questions while they are in the showroom.
If a geo-fence is capable of getting customers in the door, remote learning tools will likely become the go-to method for transforming foot traffic into conversions.
- Provide More Value
One item is consistent throughout most local advertising campaigns – you need to provide additional value to get customers to your store. Often this means offering a complimentary coupon or discount on services for first-time visitors. Some businesses offer markdowns for return visitors as well. Either way, location-based ads need to give users an impulse reason to switch stores immediately. That’s where tools like Yowza App come in. The app allows you to stash your coupons on your mobile device so can easily locate them while you’re shopping.
Remember when advertising was simply the process of plopping an ad on TV and praying it worked? Well, for better or worse, those days are long gone. Instead of throwing a Hail Mary with your advertising budget, you can now create a targeted ad that allows you to reach the best customers for your business.
Let us know in the comment section below how you use location-based advertising for your business.