The benefits of Location-based marketing for small business


There are plenty of benefits applying Location-based marketing as the consumer's behavior changed dramatically in the past 2 years. The rise of online shopping threatens the existence of physical stores. But the presence of physical stores never disappears. To make every dollar worth in business and get the most from profit, it is important that businesses need to optimise their marketing budget. And Location-based marketing is a solution in this case.

Next time when you want to apply Location-based marketing for an upcoming marketing campaign, book a consultation with us to make the most of Location-based marketing. 

What exactly is location-based advertising and why is it so effective?

Location-based marketing, simply put, is the technology of using location data that is shared from GPS, online transactions at shopping malls, grocery stores, or photos. Using this data, marketers will be able to reach their desired audiences with more relevant advertising and content.

Benefits of Location-based marketing for small business

This type of marketing is the most personal form of mobile advertising. You just need to use it correctly to achieve exceptional results.

Here is an example of what a location-based marketing strategy would look like.

Annie owns a spa. Annie uses Facebook to reach her potential customers. But if Annie considers using Location-based marketing, she can target the people in the gym nearby, the yoga studio in this area. This is more precise than just sending mass advertisements. Because people are already in the targeting area near the spa, they will have a higher chance to visit Annie's spa. The result is more efficient and more effective. 

Annie's case is an example of using Geofencing. One of the tactics of Location-based Marketing. There are more examples of other tactics you can learn about. 

Different Location-based marketing tactics

Quick sale conversion

Sale conversion is the end-result that every business cares about. This is where Location-based marketing excels. According to Entrepreneur, location-based digital ads have been found to be more than 20 times more effective than generic banner advertisements.

Hình 2

Using the combination of location targeting and demographic filtering, you will deliver ads to people when they’re relevant. Location-based marketing converts impulses to sales as customers are physically closer to your store and are more likely to engage with. 

Send them advertisements or promotions when they are within a certain distance of your business. This time they will be more ready to make a purchase decision.

Understand customers better

With Location-based marketing, you can collect tons of demographic information and the behavior of customers from their MAID (Mobile Ad ID). This can help you create stronger, more effective campaigns in the future especially when relating to re-targeting on social platforms.

Moreover, Location-based marketing can provide consumers with relevant ads and personalized messages at a new level. Here is an example of the strategy we used in the campaign for Adidas Vietnam in 2019.

Adidas fencing

YOOSE targeted 17 brick-and-mortar stores across 6 biggest cities in Vietnam with the targeted geofence being 200m around each location. We also generated valuable ad engagement to show real-time distance to the physical store. This small but powerful element helps drive people to store visits and potential on-site conversions.

Drive away from the competitor

Not only does location-based marketing bring the customers to your store but you can also use it to drive them away from competing brands. When they are in the area of your competitor, you can create an advanced geofence in that area and send offers to them. 

Options with different budgets 

Location-based marketing is a practical choice for any small business with a limited marketing budget. You can start with a low cost by just sending ads to those who have a high probability of buying your product or service, you’re not wasting money on sending ads to people who have no chance of doing so. 

We have walked you through the benefits of Location-based marketing for small businesses. If you think this approach might be helpful for your business, contact us now!

Recommended articles: Location-Based Marketing use cases