Imagine this. A potential customer is returning home from work and passing by a shopping mall and sees a message flash that says “70% off on Clothing @ Zara” or watches the same ad somewhere around the mall while he is driving. He’d probably go and visit the store now instead of just going home. This is what location-based advertising is capable of doing. It makes you visit the stores even if you had no plans of shopping.

Hyperlocal advertising

Advertising at the right place and the right moment is critical for the success of any business. Location-based advertising helps in creating highly customized and targeted marketing efforts for customers in a particular location.

With the advent of location-based advertising, businesses are now able to target potential customers who are within the arm’s reach of their store accurately. This has made more than 8 out of 10 marketers say that location-based advertising has produced growth in their customer base (85%), higher response rates (83%) and higher customer engagement (83%).

But how? 

And how does that make it different or even better than the traditional advertising practices? 

Let’s find out!

Effectiveness Of Location-Based Advertising As Compared To Traditional Marketing Methods

Unlike the traditional marketing methods, location-based advertising is adaptive and effective in nature when it comes to targeting specific clients based on their location. While traditional marketing techniques have established a foundation for marketing, they are becoming old, a touch outdated and even super expensive!

A coffee shop or a restaurant or a B2C startup will not be able to advertise on a digital or a normal billboard in downtown areas due to the astronomical pricing which can be afforded only by the big brands.

Location-based advertising

Most marketing experts are used to considering their customers as one massive demographic in order to simplify the ROI equation. The past decade has truly revolutionized everything and hence marketing methods have to evolve as well. It is time.

The cost-effectiveness of traditional marketing is no longer what it used to be. The arrival of location-based advertising has dramatically changed the way enterprises approach marketing.

Now, you have to address each and every customer as an individual to create better relationships and ROI. The new strategies are both cost-efficient and effective in reaching a larger client base.

Our product StuckAI’s ad platform provides the brands with transparent buying, shorter commitments, smart metrics on ROI, scalability, and hyperlocal targeting.

Location-based advertising in the past

Back then, it meant to have different advertising campaigns for rural and urban areas. Reason being the difference between the wants and needs of people in both areas and the buying powers varied between them. In contrast to that, location-based advertising takes a whole new meaning today.

It hinges around the fact that wherever buyers go these days, they carry a smartphone with them. It enables the organizations to track clients’ preferences and locations individually; allowing them to create and display ads to people already in the vicinity and the mindset to buy products in a marketplace.

To explain it even better, imagine you are running a e-commerce store. A visitor is going through the products and your store pops out a message saying ‘ Buy at 15% off for the next 30 minutes’ – the visitor is more likely to convert into a paying customer. You can do the same in the physical world using location based advertising.

This can be done by using techniques like placing ads on moving cars. These ads change based on the location of the car and show the ads only around the specific neighborhoods / blocks in the city. This 15-second video will help you understand the new location-based advertising concept in a better way.
The evolution of technology has enabled marketers and advertisers to sort through customers based on behavioral and demographic settings. Thanks to the built-in GPS and navigation features of every smart device, each individual can now be located and targeted in a more effective way than was possible in the past.

Even the ads that play on a car can be customized based on the onlooker’s location! Interesting, right?

Stuck AI's campaign with Salvation Army
Our campaign with Salvation Army in Canada during the Holiday Season

A more promising future

Long gone are days when organizations depended on yellow papers, radio spots and print ads for marketing methods. Every business – large or small – can now create messages specific to their clients’ location by using search engines and social media platforms through hyperlocal advertising

Location-based advertising provides a contextual ad experience that people are becoming more accustomed to. To nail down more on the subject, here’s a summary of some key types of location-based advertising and hyperlocal advertising:

1. Behavioral Targeting

This is related to a user’s geographical location or actions.

For example, if you are a frequent traveler, hotels can utilize this information by using your GPS activity and offer discounts on their value additions and loyalty programs. You’ll find this ad useful and highly relevant as it has been tailored to your routine.

Similarly, different kinds of business can work out the key characteristics of their audience and design ads accordingly.

2. Radius Targeting

This form of hyperlocal advertising allows you to display ads to the people near your store. In the past, businesses used to advertise to the whole down through billboards or securing the advertising spots on the front or back page of a local business directory.

Fast forward to 2019, businesses can advertise their products and services to a particular radius of a city.

3. Geo-Targeting

With the power of location-based advertising, brands are able to target people in the vicinity of their stores (which motivates them to visit the store) and be much more relevant. With the help of geo-targeting, advertising is not an annoyance to people anymore, but something they find to enhance their shopping experience. They like receiving a push notification about a flash sale at a nearby store while visiting a mall.

It is not only helpful to customers but helps retailers too, as they can now target people who are close-by through value proposition like the one offered by StuckAI.

4. Local Search Advertising

Let’s understand this form of hyperlocal advertising with your participation. Type “coffee nearby” in your Google search box and see what you get. Assuming you did it the right way, you were presented with a map featuring pinpoints which indicate the coffeeshops in your area. You might have also gotten prices and reviews which is all part of local search advertising.
As one-third of all mobile searches are now related to location, businesses are becoming increasingly aware of this channel and are investing huge amounts to ensure they appear clearly on the map.

As a business owner, hyperlocal advertising builds relationships that can create repeat business for you. Plus, it tends to be cost-effective as it reaches fewer (but potential) people. Therefore, it is natural to wonder how this technology is aging and how your present efforts will affect your business in the future.

What Does The Future hold For Hyperlocal Advertising?

We are still in the early days of this digital world that we live in. As technology matures, you can safely assume that the data (locations) will only increase. Hence, the potential applications of this targeting technology are only limited by your imagination. The possibilities are endless.

About 82% of marketers are already using location data to personalize their customer experience whereas 85% plan to do so in the next 12 months.

As the adoption of location demanding apps grows along with smartphone proliferation and wearable tech, the potential for growth in hyperlocal advertising will only continue to expand.

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