1.) The Potential
It’s no secret that the use of mobile devices is skyrocketing. According to a report on SmartInsights, the average individual in the US spends 87 hours each month browsing on a smartphone. With so many consumers engaging with these devices throughout the day, it creates a wealth of opportunity for marketers and retailers.
Another report conducted by Google states that half of consumers visit a physical store immediately after researching the store on their phone. Simply put, if you’re not utilizing location-based ads, you’re missing out on an outrageous amount of potential sales.
2.) Consumers Like Customization
There are many technologies that allow the advertiser to target a specific location, such as beacons, geolocation, geofencing, and geotargeting. These many advanced mechanisms create a more familiar and customized experience for the consumer, which is often well-received. Potential customers enjoy seeing ads that are close to their physical location because it saves them the time of weeding out places that are too far away.
Beacons allow a retailer to offer notifications and promotions once customers are inside of their store. The only drawback is that beacons operate through Blutooth, which many users turn off to save on battery life.
Geolocation uses information to determine a user’s location. A consumer’s IP address or GPS location allows this technology to be possible. This is primarily how location-based mobile marketing is achieved.
Geofencing is the creation of a digital parameter or “fence”. Once a user enters the fence, they suddenly become able to receive special promotions or push notifications.
Geotargeting runs along similar lines to geolocation. This technology uses digital information to determine a user’s location, but it can discover more in-depth insights than geolocation. With the user’s permission, geotargeting can access purchase history and unique preferences to customize an advertisement to that user. Loyal customers can easily be rewarded with a special offer, or narrow channels like soon-to-be-mothers in the greater Ft. Lauderdale area can be connected to a nearby retailer.
3.) Stop Overspending for Your Ads
Dominant advertising platforms such as Google AdWords, Bing Ads, and Facebook Ads all reward advertisers that create higher quality content. These platforms strive to ensure that consumers are viewing the most relevant ads and search results possible, and that is exactly why they assess the content any user produces.
Adding location extensions to an ad will help to improve this quality score. With a higher quality score the ad will appear more frequently in a higher position for less money. So what’s not to love about location-based mobile advertising?