Learn the driving factors behind the surge in location-based marketing, and how retail marketers can increase consumer engagement with local campaigns
While it’s known as the world wide web, consumers often use the internet to find things nearby. In fact, 46% of all Google searches have local intent. And retail marketers are prioritizing budgets accordingly. National brands are expected to invest $62.7 billion overall to target local consumers in 2019. That’s a very big pie that’s carved up in both traditional and digital ways. But when it comes to the emerging technologies that will get a share of that pie, more marketers plan to invest in location-based marketing than any other option, according to eMarketer.
What’s behind the strong faith in location-based marketing? Options such as artificial intelligence and machine learning are grabbing headlines, and they are high on the investment priority list as well. But there’s an immediacy to local marketing that is very tangible driving it’s popularity. It’s low-hanging fruit. Marketers just need the right tools in order to grab it. And technology solutions for local marketing keep improving.
US franchisees are an interesting segment when it comes to location-based marketing. According to the 2019 Brand and Franchisee Advertising and Marketing Insights report, the top two most popular ways to advertise feature location-based digital technologies. The first pick—targeted social ads—leverages geographical data that users share with social platforms. And the second—mobile location-aware—are geotargeting and geofencing campaigns that identify audiences by their locations using mobile phone geo data.
So we know that a lot of online consumer behavior signals local intent. We know that brands see the opportunity and are willing to invest in location-based marketing. What’s left? Well, consumers have to make their location data available (or at least not opt out if the default is to share). And it appears they’re willing to do so…if they get something in return. Not surprisingly, consumers find the prospect of receiving a discount of some kind to be the most appealing offer in return for their location data. And the least appealing offer? Ads that were better targeted to them based on their location. Clearly, marketers have to keep the value exchange in mind when designing their location-based marketing programs.