30-Jan-2020 04:43 PM Digital Marketing
Marketers are increasingly tapping into their consumers’ locations, trying to get advertisements more personalized.
In the year 2018, the world downloaded 194 billion applications from both the App Store and Play Store. A billion isn’t a small number.
For reference, one million seconds is around 11 days and a half. A billion seconds, on the other hand, is a little more than 31-and-a-half years.
Now imagine 194 billion apps being downloaded in a year. That’s approximately 6,147 apps downloaded every second. The number would have only grown, with phones becoming smarter and faster, and the internet penetrating deeper.
The point we’re trying to put across is that all these apps that you download, even if they are free of cost, are not all free. You give them access to almost all that data on your phone. Your location, your wifi signals, your gallery, and countless other data. The apps read your data and use these in their marketing endeavors. (And some give it to Russia.)
Apps use your location data to send you advertisements. How to use them effectively is a skill set that can be acquired, and we’ll tell you how.
This tactic uses beacons, near-field communication (NFC), or augmented reality to trigger ad delivery, alerts, or content to a smartphone that is within just a few feet of a specific location.
Here, marketers advertise to the audience within the vicinity. It could be a neon billboard or a text message as mentioned above. New restaurants, boutiques or even branded stores target those living close by.
This is owing to the fact that any physical store that is put up, is done so after an extensive market study on why the location is profitable. This is also why you always find a McDonald’s, KFC, Burger King or a Pizza Hut close to one or the other.
In terms of your location, a consumer’s behavior depends on where they have been and what their actions were. Targeting an audience who has been to specific locations is called geo-targeting.
Marketers obviously have all the data they need on a consumer’s location, thanks to smartphones. They can now send ads that look customized to their target audience. You can send offers or discounts on your new membership plan to those who visited your gym, new items on the menu to those who frequent your restaurant, or even seasonal promotional offers on cab services for consumers on the routes they take to work.
This tactic works in similar ways to behavioral marketing. Except, here marketers keep track if you’ve been to their competitor’s store.
Meat Pack is a store that sells branded shoes for discounts. In Guatemala, the Meat Pack store set up push notifications for those who visited the nearby Nike and Adidas stores and informed them about the discounts running in their stores. They also set a time limit for these discounts, which made consumers take action immediately.
Another successful geo-conquesting campaign was run by Burger King. They offered a Whopper Burger for one cent for those who opened the Burger King app inside a nearby McDonald’s.
While downloading apps, you give permission for those apps to access your location, which means, parties involved in the app know your location too (read the Terms and Conditions next time).
Now, companies have geo-fenced localities. This means since you’ve shared your location with an app, when you enter the vicinity of a party that has geofenced the area, you get a notification. It could be offers, discounts, flash sales or anything promotional.
The bottom line, geofencing works on your real-time location and sends you notifications accordingly. Take Zomato for example. If you are in the vicinity of any restaurants that offer Zomato Gold, you get a Zomato notification of their gold offers to request you to check them out.
Location-based marketing is faster, more efficient and personalized. It is also becoming easier for marketers to check up on an individual’s location since everyone has their phones on them all the time.
Marketing is becoming personal every day, selling out convenience in one form or another. As a marketer, location-based marketing is something you should look into if you aren’t already.