Geo-Targeted Marketing Techniques

Geo-targeted marketing is a more recent innovation with smartphone usage on the rise. The basic premise is that depending on where smartphone users and home computers are found with location services, manual entry, or IP address, that is where local businesses will be able to market to them. It seems like an obvious method, but with larger nation wide or international companies this can be a challenge otherwise. This article will serve to explore the benefits of geo-targeted marketing and why it is such a useful tool.

Geo-Targeted App

Starbucks is a clever company when it comes to marketing with a smooth style that appeals to their target market perfectly. In terms of geo-targeting though Starbucks has done something very unique. They have included a couple of features with their app that take advantage of your smartphones location service. The first feature is a pretty standard one; the app will find the closest Starbucks to you and allow you to make an order in advance. This brings users an ease of access to Starbucks when they even think of it since they can immediately act on an impulse. The second feature however, is a truly unique one. When a user is close to Starbucks, the app will display a small shortcut icon in the corner of the lock screen.

ios-8-starbucks-app-on-lock-screen
Note the Starbucks shortcut that appears in the left corner

The effectiveness of this feature is very high; not only can the user easily bring the app up to pay from the lock screen, but supposing they just walk by and look at their phone the icon can remind them of their love for Starbucks and create an impulse purchase.

The other type of geo-targeting is a little simpler than the previous method with location based email campaigns. In fact, location focused email campaigns are much more successful than standard blasts to everyone, resulting in up to a .6% increase in CTR. This is because your ad is more relevant to people right near your physical locations. The geo-targeted email option has two different strategies to it: the Opt-In strategy, and the Opt-Out strategy.

Opt-In Strategy

The Opt-In strategy is more of a traditional approach to geo-targeting campaigns. It includes areas where people are and sends emails to only those people. This is very useful for targeting your specific target audience. For example, if you are a health food company and are targeting active people then you can pinpoint an area where a large marathon is taking place. This will include everyone that is possible who is in the area and get your email to them.

Opt-Out Strategy

The Opt-Out strategy excludes certain places that you can otherwise target to reduce costs of a campaign. An example of this is if you are targeting a whole city because you know there is a large technology convention there. You can exclude a chunk of rural geography supposing people are living there, as they are not your target audience. Since they will not receive the email blast you send out you will save money and increase your CTR.

Geo-targeted marketing can be a powerful tool to use in your email campaigns to really focus on your target audience. By using this tool you can increase your CTR, reduce costs of mass email blasts, increase your customer base, and even encourage impulsive shopping behavior.

Sources:

http://searchengineland.com/10-practical-tips-using-geo-location-reach-target-audience-217301

http://www.idownloadblog.com/2014/06/03/ios-8-lock-screen-ibeacons/

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