[PRESS OFFICE] In the swiftly changing realm of digital marketing, location-based marketing (LBM) has emerged as a revolutionary strategy, leveraging geographical data to target consumers with unparalleled precision.
By seamlessly integrating privacy-compliant location information from mobile devices with crucial points of interest such as restaurants and shopping centres, LBM empowers marketers to devise highly targeted campaigns that captivate consumers precisely when their interest peaks.
At its essence, LBM harnesses real-time geographic data from mobile devices, delivering personalised notifications and offers just as consumers are poised to make purchasing decisions. This technique transforms raw location data into actionable insights, enabling businesses to cultivate deeper connections with their audiences through bespoke, timely incentives.
LBM employs several advanced strategies
- Geotargeting: This technique segments users into audiences based on their historical location data, delivering pertinent ads to those who match the desired criteria upon entering a specific area.
- Geo-conquesting: As an extension of geotargeting, this method captures customers from competitors by presenting enticing incentives when they enter a rival’s domain. A notable instance is Burger King’s ingenious “Whopper Detour” campaign, which directed McDonald’s customers to nearby Burger King outlets with an irresistible promotional offer.
- Geofencing: This strategy creates a virtual perimeter around a real-world location, triggering advertisements as consumers enter or exit, thereby enhancing both engagement and foot traffic.
The effectiveness of Location-Based Marketing (LBM) is anchored in cutting-edge technology. Utilising GPS systems, IP address tracking, RFID tags, and advanced analytics tools, these technologies process and analyse vast amounts of geolocation data, enabling marketing strategies that dynamically respond to consumers’ geographical movements.
Sophisticated tool
Kerri Pravia, head of Strategy at iProspect, notes that many clients now employ location-based marketing strategies, enhanced by CCS—a sophisticated tool that refines advertising accuracy through extensive survey data and consumer behaviour analysis.
CCS allows brands to precisely identify target audiences and optimise campaign timing using geotargeting techniques. For example, by identifying the most frequented malls and peak visit times, iProspect’s clients can deploy targeted marketing at the most impactful moments, fostering a more personalised relationship with customers.
Dentsu Data SSA has developed unique applications of LBM through tools like Geovision and Nightvision. These platforms utilise geofencing techniques and external data sources such as loadshedding schedules and weather conditions to predict and respond to consumer behaviour.
For instance, when rain is forecasted or a power outage is imminent, these systems can push highly targeted ads, allowing clients to capitalise on shifts in consumer behaviour.
Trigger-based technology
During the 2022 FIFA World Cup, MultiChoice, a client of iProspect in South Africa and Kenya, leveraged Dentsu Location Services’ DSP. This campaign employed sophisticated trigger-based technology to dynamically optimise digital Out of Home (OOH) advertisements.
By integrating data from social media, GPS, and traffic, they effectively pinpointed where their target audience was concentrated, ensuring that soccer fans on the streets received real-time updates with live match scores and highlights whenever key events occurred, such as goals or penalties.
This approach not only showcased the potential of location-based dynamic content in OOH advertising but also exemplified Dentsu’s global strategy to leverage location data for deeply engaging marketing experiences through responsive, event-triggered advertising.
Complying with privacy laws
Location-based marketing significantly enhances customer engagement by delivering highly personalised and location-specific ads, providing brands with a competitive edge. It targets consumers based on their immediate surroundings, ensuring each marketing message is unique and tailored, enhancing the sense of exclusivity.
Additionally, LBM strengthens customer loyalty by acknowledging and rewarding returning customers, thus deepening relationships.
However, privacy remains a crucial concern for LBM. Operations must comply with stringent privacy laws and align with consumer preferences to avoid negative repercussions. The strategy demands complex technical support and robust infrastructure for successful implementation.
Furthermore, data accuracy is vital, as the effectiveness of LBM hinges on the precision and reliability of location data.
Location-based marketing is more than just a digital marketing trend; it is a transformative approach that leverages innovative technology to engage consumers on an unprecedented personal level.
As technology advances and consumer behaviour evolves, LBM will continue to redefine how businesses connect with their customers, offering exciting opportunities for those willing to invest in its potential.
Christen Werth is a junior data engineer and B.Informatics (Hons) Graduate from Stellenbosch University. Paul Stemmet is the director of data science at Dentsu Data SSA. He leads the agency data and martech strategy.
