Geomarketing Guide: How, Why & Who

The term “geolocation marketing” gained wide distribution and usage, but it turned out that only a few companies understand what it means and, most importantly, how to use it.

Everyone can use this “trick” because geomarketing involves interaction with users based on their location. How can marketers personalize advertising for users? And what should they do to collect data on the site of a potential customer?

The Concept of Geolocation Marketing

Geo-marketing includes all data on the physical location of a person. Information usually obtained via GPS.

If the phone’s GPS is turned off (or if the signal is lost), location data is transferred from cell towers instead. That is a less accurate, but a very reliable solution. If you opened your map on the subway or while driving, you probably got location data from your cell tower.

So, the device uses a satellite or cellular tower to determine the location on the map. Once the device has this information, it is delivered to the application, which uses it for marketing purposes.

What can geomarketing give to the brand?

You can adjust the ads to display to users, who are located closer to you, or to those people who have placed geotags near you. Even if you don’t have a physical store, you can offer your services in the cities that are of a priority. Below are the most common ways to interact with users through geomarketing.

Geotargeting

Ads are given to customers depending on their location. Geotargeting always follows the mobile phone. Initially, websites used users’ IP addresses to display personalized content. For example, an online store that shows currency exchange rates, depending on the country of the user.

IP addresses rarely show accurate data, and it is difficult for marketers to focus on specific areas based on these data alone. That is why geotargeting more commonly used for large groups of people: a city or a country — marketers who want to get a targeted hit better use geofencing.

Geofencing

Geofencing is the mobile era’s approach to traditional geotargeting. It uses the location of the device’s GPS, not its IP address, so the data is much more accurate. On top of that, the location data is continuously updated so this type of geomarketing is excellent to inform the user on the go quickly.

Geofencing is most efficient for small areas: individual districts, streets especially if the purpose of the app is to attract people who walk by your store.

Beacon

That is the most precede of the three geolocating methods. A beacon is a small physical object that receives location data via Bluetooth. Because the technique uses Bluetooth data, beacons can be set up in places such as shopping malls and cinemas.

The beacon data accurately tells the application where the customer is in the building, helping to optimize performance. You always know if the customer is near. The main downside is that the user’s Bluetooth may not be turned on. Besides, beacons cannot work everywhere because they physically tied to the place.

How to improve the interaction between an application and a potential customer’s location?

Geofencing technology is suitable at the initial stages for mobile, dynamic companies testing marketing tactics. The level of its focus makes it ideal for mobile campaigns.

For example, the travel app usually notifies you (via push notifications) that there’s “X” time left before the check-in. Instead of setting up a notification for a specific time, you can aim geofencing at an audience close to the airport and thus reach more users.

Similarly, the app featuring info on restaurants or events in different cities can give recommendations based on geolocation and thus “catch” more users. For example, “Welcome to [city name]! You might be interested in…”

How to get started with geomarketing?

The value of geolocation marketing is clear, but the technology is quite complicated. The easiest way is a mobile marketing platform that supports geolocation-based campaigns. You can set up ads to be displayed, based on the geolocation of the person. And, of course, for targeting to work, you need high-quality advertising in the first place!