Fiveable

๐Ÿ“ฑDigital Marketing Unit 9 Review

QR code for Digital Marketing practice questions

9.4 Location-Based Marketing

๐Ÿ“ฑDigital Marketing
Unit 9 Review

9.4 Location-Based Marketing

Written by the Fiveable Content Team โ€ข Last updated September 2025
Written by the Fiveable Content Team โ€ข Last updated September 2025
๐Ÿ“ฑDigital Marketing
Unit & Topic Study Guides

Location-based marketing uses tech like geofencing and beacons to target customers based on their physical location. It's a powerful way for businesses to reach people with personalized messages and offers when they're near a store or in a specific area.

This mobile marketing strategy combines location data with user behavior to create highly relevant ads and experiences. From targeted promotions to check-in rewards, location-based tactics help brands connect with customers in the right place at the right time.

Location Targeting Technologies

Geofencing and GPS Targeting

  • Geofencing creates virtual boundaries around specific geographic areas
  • Uses GPS, RFID, Wi-Fi, or cellular data to trigger actions when a device enters or exits the defined area
  • Allows businesses to send targeted messages to users within the geofence
  • GPS targeting utilizes satellite technology to pinpoint a user's exact location
  • Enables highly accurate location-based marketing campaigns
  • Provides real-time tracking of user movements for personalized offers
  • Geofencing accuracy ranges from 100-200 meters, while GPS can be accurate to within a few meters
  • Applications include sending promotions when customers are near a store (retail), delivering location-specific content (tourism), or tracking fleet vehicles (logistics)

Beacon Technology

  • Beacons are small, wireless transmitters that use Bluetooth Low Energy (BLE) technology
  • Emit signals that can be detected by nearby smartphones or tablets
  • Provide more precise indoor location tracking compared to GPS or geofencing
  • Typical range of 70 meters, allowing for hyper-local targeting
  • Require users to have a compatible app installed and Bluetooth enabled
  • Enable personalized, contextual experiences in physical locations
  • Used in retail stores to guide customers to specific products or send targeted offers
  • Enhance museum experiences by providing information about nearby exhibits
  • Facilitate contactless payments and loyalty program integration
  • Privacy concerns include data collection and potential for over-messaging users

Location-Based Advertising Strategies

Targeted Location-Based Ads

  • Deliver relevant advertisements to users based on their current or historical location data
  • Utilize various targeting technologies (geofencing, GPS, beacons) to determine user location
  • Increase ad relevance and effectiveness by considering local context and user behavior
  • Dynamic creative optimization adjusts ad content based on location-specific factors
  • Incorporate local weather, events, or traffic conditions into ad messaging
  • Retarget users who have visited specific locations with follow-up ads
  • Measure foot traffic attribution to connect online ads with in-store visits
  • Comply with privacy regulations by obtaining user consent for location tracking

Proximity Marketing and Geo-Conquesting

  • Proximity marketing targets users within a very close range of a specific location
  • Utilizes beacons or NFC technology for ultra-precise targeting (within a few meters)
  • Sends push notifications or in-app messages when users are near a point of interest
  • Geo-conquesting targets users near competitor locations to divert them to your business
  • Offers competitive promotions or highlights unique selling points to attract customers
  • Combines location data with user preferences for highly personalized messaging
  • Implements frequency capping to prevent over-saturation of messages
  • Analyzes competitor foot traffic patterns to optimize targeting strategies

Location-Based Engagement Tactics

Check-Ins and Gamification

  • Encourage users to manually "check in" at physical locations using mobile apps
  • Offer rewards, discounts, or loyalty points for frequent check-ins
  • Create location-based games or scavenger hunts to drive foot traffic
  • Implement augmented reality features tied to specific locations (Pokรฉmon Go)
  • Use social proof by displaying check-ins and reviews from friends
  • Leverage user-generated content from check-ins for authentic marketing materials
  • Analyze check-in data to understand customer visit patterns and preferences
  • Integrate check-ins with social media platforms for increased visibility

Local SEO and Online Presence Optimization

  • Optimize business listings for local search results on Google, Bing, and other platforms
  • Claim and verify Google My Business profile to appear in local pack results
  • Ensure consistent NAP (Name, Address, Phone) information across all online directories
  • Encourage and respond to customer reviews on Google, Yelp, and industry-specific platforms
  • Create location-specific landing pages for businesses with multiple locations
  • Optimize website content with local keywords and location-based schema markup
  • Develop location-specific content (blog posts, events) to improve local relevance
  • Build local backlinks through partnerships with other local businesses or organizations
  • Monitor local search rankings and adjust strategies based on performance metrics