Geomarketing, often referred to location-based technology, has opened up a myriad of possibilities for marketers. However, the process can be complicated and with new capabilities emerging all the time, can be challenging to implement. It is defined as any form of marketing that incorporates location intelligence to improve the odds that a specific message will reach the right consumer at the right time.
Location data is used as part of the marketing effort in geomarketing. Geotargeting is a common form of geomarketing and is defined as delivering content via mobile or cross-device based on where the consumer is or what locations they have visited previously. Geofencing is a geomarketing tactic that is designed to target uses within an established geographic area. It is an approach where a virtual fence is created around a specific geographic area. When people enter it, they can receive messages, coupons, alerts and other information sent to their phone when they go into that area. People must sign up for it or subscribe to it to get that information.
The principle behind geomarketing is that, “where you are is who you are.” Essentially, the places a consumer visits says a lot about them and can be a predictor of intention. For example, a consumer who has visited several car dealerships is most probably searching for a new or used car. As a car dealer, I may want to deliver a relevant ad about a new car to this interested person so that I can make a sale.
A consumer’s location information is an important tool for geotargeting efforts. It can deliver a mobile coupon to a person who is walking by a store and geofence concert venues and events to aggregate social content. Ad campaigns that use location data have demonstrated their link to in-store sales which makes it very appealing to brick and mortar stores. Geomarketing is an effective way to increase sales and this is the bottom line for most retailers.
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