Growth of Location Based Marketing and Its Importance

Gadgets like smartphones are here to stay, according to emarketer an average consumer spends 4 and a half hours on a mobile phone, this gives marketers another leeway to reach their consumers. They can make use of this opportunity to sell their products and services directly, but unfortunately every marketer is not using location based technology in an effective way, one of the things necessary to drive impact through this type of channel…

What is location-based marketing?

Using information from mobile devices, location-based marketing enables people to see material that is pertinent to their present and past locations.

Location-based marketing also goes by the titles of proximity-based marketing, geotargeting marketing, hyperlocal marketing, and geolocation marketing.

Through geofencing or targeting, location data is frequently used. For instance, when individuals visit a clothing store, the business must focus an advertisement in that region to entice them to come in and purchase those pieces of clothing. Therefore, these advertisements inspire locals to visit the store.

Through the use of online or offline messages tailored to a consumer’s actual location, businesses can target consumers more precisely and individually. With the use of location data, marketing teams may connect with customers based on criteria like proximity to a store, local events, and much more.

Is location based marketing effective?

It goes without saying that it has a big impact on your company. Its essential significance, however, is in the fact that it puts your company one step closer to generating more income and raising brand awareness at a reduced expense.

Location-based marketing has been shown to be a successful method for gaining access to customer lifecycles. It also assists visitors in making purchases or at the very least engages them so they can decide to make a purchase.

Location-based marketing can help you reach specific customer segments with targeted offers and improve customer satisfaction at the same time, both of which increase the value of instant gratification. Location-based marketing can also let potential customers know that a product they’ve been considering buying is close by, enabling them to pick it up right away.

Why Use Location-Based Marketing?

Due to the marvels of modern technology, location-based marketing is one of the dominating channels in digital marketing, fueled also by the use of mobile devices. Let’s look at some of the advantages of location based marketing:

1. Increases Foot Traffic

Increasing engagement for your business is the ultimate action you want to take. Location marketing employs your smartphone data to enable customers to use their applications efficiently, which is one of its coolest features.

The basic goal of marketing is to draw in both current and potential clients. It is safe to claim that local branding that will meet your needs makes location-based marketing effective.

2. Provides more relevant advertisements

The occurrence of appropriate adverts is another benefit that it might include. The cycle of marketing your business to a particular demographic might be helped by delivering more adverts based on your location.

3. Creates a better User Experience for Customers

Smartphone users can leverage cool features that the internet offers specifically for mobile apps. Users have a better overall impression of your app after using it, increasing the likelihood that they will frequently use it again.

Location-based marketing can be considered a filter. You want consumers to encounter marketing that is perfect and unique for them, based on algorithms and data. Location-based marketing for your app should perform just as well because it technically markets on a more personal level.

4. Defends against market competition

Companies are constantly looking for ways to outdo their rivals. With location-based marketing, you’re not just drawing in additional customers but also turning them away from your rival business. Let’s just say that developing your marketing strategy can have its benefits. You will be able to address the challenges with the strategy and it will lead to better results and ROI.

5. Helps convert to sales

Location based marketing may lead to impulsive purchases, which may increase sales. Never forget that shopping on a whim can be just as good as planning your purchases carefully. Impulses have a distinct benefit, especially with location-based marketing since it can be proposed as a successful marketing tack.

6. Improves search engine results 

Having your business appear at the top of the most relevant search results is the main objective of digital marketing. Because the first businesses that typically appear when individuals are on the go are those who have access to a smartphone user’s location data, it makes it simpler for businesses.

Thus, it helps search engine rankings, particularly for marketers that spend money on location-based marketing for their company.

Different Forms of Location-Based Marketing

To effectively use them and stay on top of trends, organizations must have a thorough understanding of the various location-based marketing strategies in use today. Additionally, they must be familiar with the fundamentals of how location-based marketing maintains consumer and data privacy.

A few of the different forms of location based marketing:

1. IP Address Marketing

IP addresses are used in online advertising to target devices inside of homes and places of business. Whenever a tool or technology compares IP addresses to lists of names and street locations to display adverts on websites that users visit frequently, it successfully markets relevant ads.

2. GPS Advertising

GPS marketing is another method for implementing location-based marketing. Businesses can more easily entice customers to neighboring locations of your business when addresses are registered with search engines.

Typically, GPS-enabled devices—especially those used by smartphone users—are used for this kind of location-based marketing.

3. Proximity Marketing

This technique triggers the delivery of advertisements, notifications, or material to a smartphone that is just a few feet from a certain place using technologies like beacons, near-field communication (NFC), or augmented reality. Making a payment with a smartphone is one of the most popular use cases.

When turned on, the phone rapidly recognizes the existence of the credit card terminal, allowing for a quick and simple transaction. Moreover, it’s becoming increasingly common for beverage businesses to combine this strategy with augmented reality. Using a specific app, such as the Living Wine Labels app, a customer in a wine shop can make the wine or beer label come to life. The label is visible to the phone’s camera, and the app activates the label on screen which is changed to animated display and it educates as well as entertains the user.

4. Geo Targeting

In order to send users customized messages based on their location, geo-targeting marketing is utilized to locate the user. If a user has given permission for an app to access their location, they may receive push notifications or in-app messaging based on their position or how close they are to a store. IP addresses are the basis of geotargeting.

Each connected device has a distinctive IP address that enables identification. The location of users can then be determined by comparing device IP addresses to factors like the user’s country of residence and postal code. Personalization improves consumer experience, which is the main advantage of geo targeting marketing.

If a person searches for coffee shops nearby, for instance, marketers can target them depending on the IP address of the device they are using. Uber uses geotargeting, which is a typical example of it. When a user is traveling and lands in a new location, they will receive a notification when there are cars available in that city when they open the app.

5. Beacon Marketing

Small physical gadgets known as beacons can be used to sell a company by interacting with customers inside of retail locations. Beacons are small physical objects that can receive wireless data through Bluetooth from adjacent devices.

Retailers who operate locations with weak cell reception benefit from this form of marketing, which subtly tempts clients to use their smartphones.

6. Location-Based Marketing Blueprints

Geographical borders are drawn around areas and points of interest using blueprints. Due to its idea of fusing location information with behavior data, this style of marketing is regarded as a sophisticated use of location-based marketing. This kind of location-based marketing is advantageous for marketers since it allows them to focus on achieving better outcomes by identifying the ideal target market.

Location based marketing platforms and tools

By offering a central database of marketing information and interactions, location-based marketing platforms enable marketers to provide personalized, segmented, and timely marketing experiences for prospects and clients. A web search will be done by a customer before they enter a store.

Additionally, they will research your company on social media, read reviews, look up local business listings, and find out when it’s open. As a result, a buyer will look online before visiting your store. If your sites are not present, a rival will win the business since another location will be present.

Your company may create location-based campaigns that increase engagement and conversions with the help of a location-based marketing platform. By integrating location data and taking into account various criteria like store proximity, nearby events, and more, this platform assists in targeting customers. The entire customer lifecycle—from discovery and purchase to engagement and retention—is seen by consumers as a viable platform for location marketing.

It is because it enables advertisers to deliver their customers with pertinent and targeted offers and communications, location-based marketing has gone viral.

  • A location-based marketing platform called Sekel Tech provides solutions for managing shop orders, online orders from brands, and customer journeys from online to offline. Through a single SaaS platform, it offers a variety of user-friendly, rich content development and distribution capabilities, bridging the online-offline customer experience and seamlessly integrating the physical and digital worlds.

Accuracy, speed, and scale are guaranteed as a result of the platform’s assistance in responding and engaging effectively. Brands are able to obtain meaningful insights and offer them to their customers because of their multidirectional approach to insight and data gathering. This platform is a collection of marketing technologies that offers very accurate geofencing that is smart and allows for content and customer engagement at particular times and places.

As a result, it is useful for driving sales and used for brand awareness, drive website and in store traffic and increase sales. It helps in building the detailed profiles of customers so their behavior is understood and furth helps in improving the revenue and sales. This is a platform that includes so many features like local SEO, micro fulfillment, Q commerce, brand control and visibility, store and local analytics, CRM, etc.

  • Colocator Engage is another tool for proximity marketing since it’s well-known as an audience engagement and segmentation engine that offers unmatched geo-targeted and trigger-based messaging capability to enhance the customer experience. Engage is a one-stop shop for push alerts that are geo-targeted.

The messages are created using the straightforward CMS of their online app. Colocator Engage currently has integrations with Apple APNS, Google FCM, Amazon SNS, Amazon Pinpoint, OneSignal, and Urban Airship.

  • In terms of mapping quality, HERE is a good location platform for developers, topping TomTom and Google Mapbox. With additional monetization options available, it will make it easier for you to transition to a higher-quality service.

Rich geographical data, clever products, and potent tools are all included and can be combined to advance your organization. You may incorporate location-aware features into your apps and online services with the premium location-based software HERE.

More than 20 industry-leading AAPs, including Mapping and Geocoding, Routing and Traffic, Weather, and many others, are available to you without charge. Regardless of your level of experience, you can get started with location and mapping technology that is at the forefront of the industry.

  • Over 15 years have passed since the introduction of traditional enterprise wired and mobile solutions. They depend on monolithic code bases, which are expensive to scale, complex to manage, and prone to problems. They lack the stability needed for wired or wireless operations that are mission-critical due to their inability to handle the complexity and scale of today’s digital users. This is all altered by mist. Mist is a cutting-edge platform that offers Wi-Fi Assurance and Wired Assurance, AI-Driven Virtual Assistant, Premium Analytics, User Engagement, Asset Visibility, and Wi-Fi Assurance and Wired Assurance, among other subscription services, at a scale, agility, and cost that have never before been possible.

The inbuilt AI engine of Mist offers unmatched automation and insight. The affordable, high-quality enterprise-grade access points provide fantastic wireless experiences. The Juniper EX Switches offer innovative, crucial experiences.

  • Woosmap provides a distinctive set of privacy-first geolocation APIs and SDKs based on our own data sourcing, all without obtaining any users’ personal information. Employing the locators will help developers to stay within budget, deploy fresh ideas, and provide your millions of customers with the best possible user experience while also growing your business.

Use location search engines, maps, mobile position recognition, address finders, geocoding, distance calculations, and more to innovate, boost conversion rates, and provide quicker digital experiences. For your use case, Woosmap Search tools offer the appropriate geographic information.

Each industry, whether it be in e-commerce, retail, financial services, hospitality, or mobility, has a relevant Point of Interest that is important and requires a customized search experience.

  • Another tool: consumer interaction platform, Kumulos, is user-friendly and provides a 360-degree view to aid in acquiring loyal clients. In-app messaging, push notifications on the web, and push notifications on mobile devices are features. You can construct omni channel campaigns with Kumulos Mobile Marketing Hub and manage them all from the Kumulos Mobile Marketing Hub.

With capabilities like rich interactive messaging, geotargeting, audience segmentation, and channeling, you can customize your campaigns. Kumulos can deliver receipts and intelligent distribution, eliminating the uncertainty associated with campaign scheduling. It is totally automated.

You can monitor all aspects of performance and make continual progress with the help of analytics and reporting. Diagnostics and crash reporting ensure that your app is always fully working. It can also prioritize and fix so the user experience is not diminished anywhere. You can get a 30 day trial free period.

Growth of Location based Marketing:

The market for location-based services is anticipated to increase at a compound annual growth rate (CAGR) of 25.5% from $55.92 billion in 2021 to $70.16 billion in 2022. At least temporarily, the Russia-Ukraine conflict hampered the possibilities of a COVID-19 pandemic-related global economic rebound.

According to a survey by Factual, roughly 90% of marketers indicated that location-based marketing and advertising increased sales, followed by an 86 percent increase in client base and an 84 percent increase in consumer engagement. Location data is now used by more than eight out of ten (84%) marketers, and 94% more want to utilize it in the future for marketing and advertising efforts.

With only 24% of respondents adopting location as a measurement tool, the survey adds, but there is a massive, untapped possibility for marketers to harness location data for measurement, for offline conversion tracking, attribution, and insights.51% of the 24% of marketers who use location data for measurement and attribution intend to utilize it more in the upcoming year.


A crucial step is making sure that the location data is used whether it comes from GPS or any other signal. It is opted-in and that the customer is aware that they are giving their consent to share location with third parties in order to better serve ads. Most of all the location-based marketing firms in this field operate in accordance with these standards of conduct today. So, to make the most of location based marketing you need to choose the right platform.

Due to how important mobile devices have become in marketing, implementing location-based marketing will require less expenditure. Given that it starts out at a lower cost and is a highly focused concept, it is one of the best marketing investments you can make for your marketing strategy.

The following MTS WRITER from 2023 provides their research perspective. HERE

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