The five location based marketing tactics covered in this blog include local paid media targeting, local promotions, out-of-home marketing, geofencing, and location pages.
Blog Post
12 minute read
Feb 29, 2024
Location based marketing might seem a little outdated in today’s digital-first world. However, there are several ways that modern organizations can leverage powerful location based marketing tactics to boost brand awareness, bolster regional sales, and grow their market share in specific cities and towns.
From running local promotions to placing billboards and out-of-home (OOH) marketing collateral in high-traffic areas, organizations that continue to practice location based marketing alongside a digital marketing strategy grow their consumer base, see an increase in sales, and benefit from higher rates of customer engagement.
“In a report by Factual, almost 9 in 10 marketers said location-based advertising and marketing resulted in higher sales, followed by growth in their customer base (86%) and higher customer engagement (84%).”
The following sections cover five of the staple location-based marketing strategies, some real-world examples of how organizations can leverage these tactics in concert with a digital media marketing strategy, and the associated benefits.
If you’d like help creating a powerful, data-driven location based marketing strategy, Impact Networking’s Managed Marketing Services may be exactly what you’re looking for.
1. Local Paid Media Targeting
Local paid media targeting is a tactic that uses location-based data to deliver tailored messages to consumers based not only on general demographics like age, interest, and gender, but also on specific user location data.
By focusing on the local market, businesses can effectively connect with potential customers who are more likely to convert due to the relevance and proximity of the advertised products or services. To foster this connection in ads, businesses can use colloquialisms, local imagery, or by just including the address itself in the ad.
One common method of local paid media targeting is through geotargeting, where advertisements are served to individuals based on their current location. These targeted ads are often delivered over social media platforms or even an internet browser like Google Chrome.
By using local paid media targeting, organizations can deliver hyper-targeted messages to consumers based on their location, and in turn, drive engagement, increase brand awareness, and ultimately boost sales within their local market.
A Local Paid Media Example
Local paid media targeting can be extremely effective, especially if it’s a fully supported tactic. For instance, when Impact worked with a local distillery on their local paid media campaign, there was no audience data to inform the campaign. Naturally, the first step was a deep research dive to provide audience data that would inform and drive the campaign.
After taking the time to sift through the audience research, Impact’s managed marketing team was able to redesign the local targeted ads – making them more specific and more effective by fine-tuning the targeting aspect so their ads landed in front of the right eyes.
Ultimately, the partnership was a roaring success that generated a substantial increase in recurring business highlighted by a 258% revenue spike. Here are a few additional results from the campaign that showcase the power of a well-designed local paid media marketing strategy.
72% increase in click-through rate
18% increase in site traffic
35% increase in ad impressions
258% spike in revenue
2. Local Promotions
Local promotions are a key component of location-based marketing tactics, aimed at engaging consumers within a specific geographic area.
These promotions involve offering discounts, deals, or incentives tailored to individuals based on their proximity to a particular business location or target area. The goal is to attract nearby customers, drive foot traffic, and increase sales through convenience and accessibility.
Local promotions can take various forms such as an event or holiday-based deal, a rewards program for regular customers, or even in-person-only deals.
For example, the Super Bowl is one of the most-watched sports events every year and offers the perfect opportunity for businesses to run local promotions. This could be something as simple as offering a 5% discount to customers who wear local team merch into your store.
Local promotions are highly effective in driving conversions because they capitalize on the proximity and camaraderie of consumers based on location. By offering targeted incentives to individuals who are already nearby, businesses can increase foot traffic, generate additional sales, and bring in new recurring customers.
A Local Promotion Example
In the context of global brands, it can be difficult to properly leverage local campaigns in an effective manner. However, when well-executed, local campaigns can help brands immerse themselves in the communities of which they’d like to be a part.
For example, when IKEA set out to open locations in Penang, Malaysia they launched a campaign that cleverly paid homage to the local language, Hokkien. In this language, many words end with the syllable, “kia” which teed IKEA’s campaign up perfectly
In the campaign, images are laid side-by-side with captions that read something like, “we are not lo kha kia (tall man) we are IKEA.”
This showcases how important it is to connect with the people and the culture of the communities in which you operate.
3. Billboard and Out of Home Marketing
Out-of-home marketing refers to advertising efforts that target consumers on the street, in transit, or at public venues. This form of marketing makes use of billboards, transit ads, street furniture ads, digital signage, and much more.
OOH marketing is highly effective for reaching a broad audience and increasing brand visibility in high-traffic areas.
Think about the billboards you see driving in or out of major cities, strategically positioned along the highways to draw you into specific establishments. This is a perfect example of out-of-home marketing, and it’s worth noting that billboards are also highly effective in event marketing.
Nowadays, billboards can vary in size and format, ranging from traditional static displays to dynamic digital screens. While one of the oldest forms of marketing still in use today, billboards are both iconic and effective at drawing in a local crowd.
Billboard Marketing Example
Over the past few years, several states across the country legalized recreational marijuana. Following the law changes, dispensaries started opening left and right where allowed.
As a result, highway billboards advertising dispensaries or announcing a new dispensary opening soon started lining the highways of states that have enacted this change. Using billboards in this way doesn’t just bring new customers to your door, but can also act as an announcement to the community.
4. Geofencing
Geofencing involves creating virtual boundaries around a physical location, such as a store, event venue, or any designated area of interest and then delivering ads to users in that radius.
This technology relies on GPS, RFID, Wi-Fi, or cellular data to establish the virtual perimeters. Then, when a device, such as a smartphone or tablet, enters or exits the designated area, users can be targeted with specific ads, notifications, or other marketing messages via apps or mobile browsers.
In other words, geofencing allows businesses to precisely target and engage with potential customers in real time based on their physical proximity to a particular location.
For example, a retail store can set up a half-mile geofence around its premises and send personalized promotions or discounts to shoppers as they come into range. Similarly, event organizers can use geofencing to send event reminders, announcements, or exclusive offers to attendees within the designated area.
Geofencing enables businesses to deliver highly relevant and timely messages to consumers, increasing the likelihood of engagement and conversion.
By targeting individuals who are already near your business or event, marketers can capitalize on immediate purchase intent and drive foot traffic or improve attendance. Additionally, geofencing provides valuable insights into consumer behavior and foot traffic patterns, allowing businesses to optimize their marketing strategies and improve ROI.
A Geofencing Example
Starbucks is one of the most prolific coffee brands worldwide. While there are a lot of factors contributing to the success of Starbucks, their geofencing strategy is well-established and very powerful.
With as many locations as Starbucks currently has, their strategy needs to focus on large brand awareness and advertising as well as driving a sustainable volume of foot traffic to every location they operate.
This is where geofencing shines for Starbucks. When you’re wandering around a new city, or taking a leisurely weekend walk, you’re almost guaranteed to pass by a Starbucks. As such, with a focused geofencing tactic in play, individual Starbucks locations can amp up the amount of daily traffic they see by sending consumers targeted ads through the mobile app when they’re right around the corner.
5. Location Pages
Location pages play a crucial role in location-based marketing strategies by providing a dedicated online presence for individual business locations within a broader brand or organization.
These pages are typically optimized to provide detailed information about a specific physical location, such as its address, contact details, hours of operation, and unique features or offerings. Additionally, location pages often include localized content, customer reviews, and interactive maps to enhance the user experience and facilitate engagement with visitors.
One of the key benefits of location pages is their ability to improve local search visibility and search engine rankings.
By optimizing each location page with relevant keywords, business information, and structured data markup, businesses can increase their chances of appearing in local search results when users are looking for products or services in their area. This helps drive organic traffic to each location and ensures that your organization is showing up when consumers are in a buying mindset.
Moreover, location pages serve as a centralized hub for local marketing efforts, allowing businesses to tailor their messaging and promotions to specific geographic areas.
Marketers can use location pages to showcase location-specific promotions, events, or initiatives, helping to drive foot traffic and boost sales at individual locations. Additionally, location pages can be integrated with other marketing channels, such as social media, email marketing, and paid advertising, to create cohesive and targeted campaigns that resonate with local audiences.
All-in-all, location pages are essential tools in a location-based marketing strategy, enabling businesses to establish a strong online presence for each physical location, improve local search visibility, and drive engagement in specific geographic areas.
By providing relevant information and personalized content, location pages help businesses connect with the local audience, drive foot traffic, and ultimately, grow their bottom line.
Location Page Examples
When thinking about location pages, consider big brand retailers. Think about Home Depot, Dominos, or Target – when you go to their main website, one of the first things you’ll be prompted to do is find your store or enter a location.
In this context, location pages improve the customer experience in several ways by providing information on location inventory, hours of operation, and anything else that may be unique about that specific store.
If your brand operates in multiple regions, or even has several stores within the same city or town, location pages are absolutely necessary.
Wrapping Up on Location Based Marketing
There is never going to be a one-size-fits-all formula for marketers to follow, and in today’s day and age, it’s crucial to have a digital marketing strategy in place. That being said, there’s no reason to completely abandon traditional location-based marketing.
Location based marketing is all about maximizing the potential of your brick-and-mortar stores by delivering tailored ads throughout the local community, creating out-of-home marketing touchpoints, and making use of new-aged technology like geofencing.
All of these tactics work hand-in-hand to increase foot traffic, boost local sales, and grow your market share.
Developing and executing a location based marketing strategy might be a bigger project than your current in-house team can manage. If you need help creating or fine-tuning your location-based marketing tactics, Impact Networking’s Managed Marketing Services might just fit the bill.
