How Geo-Targeting Has Become A Precision Marketing Tool

12 Oct


Recent geo-targeting improvements has this marketing tool poised to become the “next big thing” in mobile advertising.

Once upon a time, advertisers sent ads into universe, not knowing if they would be viewed or attractive to the user. Geo-targeting provided advertisers the ability to leverage smartphone GPS data and subsequently create ads relevant to the user’s location, and track user proximity to competitor businesses. This serious increase in ad relevancy has resulted in marketers looking to further develop geo-marketing practices. 

Two Techniques

Geo-tracking also offers targeted messages to consumers who patronize various businesses more than once. Two popular techniques that go beyond standard geo-targeting involve creating targeted ads based on either the user’s “passion points,” i.e. favorite businesses/establishments, or favored brands. Monica Ho, the vice president of marketing at xAd in New York, notes about one-third of the company’s brand campaigns are utilizing sophisticated geo-targeting techniques, a significant increase compared to previous campaigns. Indeed, the company’s location platform has grown an astounding 300 percent in 2014.

New Strategies

New strategies regarding geo-targeting include addressing the issue of delivering mobile ads “at scale with location-based targeting,” since most consumers don’t share their location unless engaging in specific activities. Another problem is ad placement at the “expense of reach.” However, Michael Boland, senior analyst and vice president of content at BIA/Kelsey in Chantilly, Virginia, notes “...using location instead to profile and target audience segments broadens the locus of targeting beyond impression-depleting locales.”

The Challenge

The problem with geo-targeting is frightening off users when marketers make it obvious they know where they are and what they’re looking for. This is also the most effective way to engage with customers, however.

“If someone in Atlanta mentions getting engaged on Facebook and starts asking brides where they got their dress, a local bridal shop could combine that interest with geo-location data and reach out with information about a sample sale," said Kam Desai, cofounder of newBrandAnalytics.

"Combining location with interest for a targeted promotion that’s very relevant to that particular consumer," he said. "If you’re sharing authentic, relevant information, consumers will value that. Knowing location is just another tool to be able to customize campaigns more effectively."

Additionally, marketers are looking to user location history for ad creation. This is thanks to the combination of mobile and big data. 

“Signals being captured by smartphones and processed through apps and cloud platforms are unlocking all kinds of valuable data by which to target ads not just by location but location-oriented factors like weather and demographic patterns,” Boland noted.

Marketers will no doubt continue their work with geo-targeting, resulting in even more sophisticated ad campaigns. 

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