Confused By Geotargeting? Get The Basics

What In The World Is Geotargeting?

3.9.15 Data-Dynamix Sales Processopens IMAGE file We keep hearing that Geotargeting is the way to go, but few marketers actually know what it is.  According to Wordstream, “Geo-targeting or geofencing refers to the practice of delivering different content to a website user based on his or her geographic location. Geo-targeting can be used to target local customers through paid (PPC) or organic search.”

There are multiple different ways to market. Many marketers have gotten into the routine of using tv advertising, email advertising, and direct mail advertising as their go-to’s when it comes to reaching an audience. While these mediums of reaching people are common and have some benefits, geo-targeting is different and it definitely has its perks.

Two major companies that have used this form of advertising are EA Sports and Starbucks. They utilized geo-targeting marketing in different ways, but both used it effectively nonetheless. Starbucks wanted to entice people that were near a Starbucks location to come in a purchase something. So, they sent out coupons to people that were near a Starbucks store. Starbucks marketers figured that if a person was close to a store and had an incentive to come in, there would be an especially high chance that they would come in. EA Sports also used geo-targeting when it was trying to promote its new sports video game. They wanted to reach sports fans directly and they figured that the biggest sports fans attend games, right? Therefore, EA Sports sent out advertisements to game attendees. Genius.

Both of these companies mentioned saw how geo-targeting could be used effectively. It offers a way to track people based on their proximity to your location. Knowing a person’s location can tell a marketer a great deal about a person. Because it can show what places someone attends, a marketer can learn more about what a person enjoys.

It’s crucial for companies to understand how important it is to get the attention of people near their establishment because when a person is close by, it is more likely that they could be convinced to come into the business. When a person is out and about, they are more likely to appreciate a coupon or ad for a place that is nearby as opposed to receiving an email for a place when they are at home. For example, if you own a restaurant in a mall, and you see that a person is in the mall browsing, you could use geo-targeting to entice this person to come into your restaurant by offering something like buy one get one coupon or a 25% off coupon. The person may not have planned to come eat in your restaurant, but you knew they were within close proximity and you gave them a reason to come eat in your establishment. However, if you sent them an email that they received on a Tuesday and they didn’t go the mall until the following week, chances are they probably forgot about the coupon… which brings up another perk of geo-targeting.

Geo-targeting is fast. All it takes is for someone to walk by a shop and then boom they receive a coupon. There’s no need for snail mail which can take a few days or a week. It’s instantaneous. Also because almost everyone carries their phone, it will surely catch a person’s attention the moment the coupon or ad pops up which is more relevant when they are near the location. Advertising to a person when they are in a store or near a store is more effective because they will get it and take notice as opposed to seeing it when they are away from the place and will forget about it.

Geo-targeting is more targeted than direct mail. Because direct mail means both printing and postage costs, and because expiration dates will cause re-printing costs, it can get expensive. Digital ads don’t have the same fees and expiration dates can be easily changed because they don’t have the same permanence that print ads do.



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