5 Strategies to Hyperlocal Geolocation Targeting

August 14, 2015

By August 14, 2015insights
5 Strategies to Hyperlocal Geolocation Targeting

Did you know that Smartphone users now pick up their devices 221 times every day? Most smartphone users do not even wait to get out of bed before they begin to use their phone for a myriad of different purposes.
It is a huge shift in consumer behavior, and a great opportunity for marketers looking to increase their customer base. By using strategies like hyperlocal geolocation targeting they can reach more prospects.
When users search the web on their phones looking for the goods and services they need on a daily basis, they create a lot of geographic data that can be useful to marketers who want to prospect to those potential customers.
The biggest question marketers need to answer is how businesses can benefit from this new trend. That is why we discuss five strategies to increase your mobile presence locally with your prospects and clients.

Five Strategies to Use Hyperlocal Geolocation Targeting for Search:

#1 Mobile paid search- The first strategy is finding mobile search traffic. Remember local mobile traffic one of the primary uses for smartphones. That is because 60% of consumers perform searches for local products on their phone. Even more amazing is that 40% of those who do search for products do so while in transit.
That is why mobile local search grew at four times the rate of general mobile internet usage. Capitalize on this shift by using geo-aware ads.
Many of these ads also turn into conversions. In fact, a survey from Thrive Analytics reported that 53% of all mobile local searches turned into sales.

It is the reason why marketers are looking at Secondary Action Rates to determine the real conversion rate of mobile search ads. That is because a Geo-Aware Ad on a smartphone wants phone numbers, maps, or additional store information to connect with the store to purchase their wares.
It is a clear indication of purchasing, and a trend that local store owners cannot ignore. Create targeted ads for users in your area to benefit from a targeted user base interested in your services.

#2 GeoFencing- Another trend when using hyper local geolocation targeting is GeoFencing. Starbucks uses this strategy to perfection.
One of the reasons why they encourage users to download the Starbucks app is because they then use that information to track them. Then when customers get inside specific gated zones close to a Starbucks, the company sends specific ads for that user.

This results in higher click through rates and more visits to the store. Often this is combined with strategy number four below, which is mobile coupons.

#3 Geo-Conquesting We discussed in our recent article, The Pros and Cons of Branded Search how companies use brand keywords of their competitors to build their own business. Geo-Conquesting is a similar idea.
Just like brands who bid on their competitors brand names to drive traffic away, local stores use Geo Fences to take traffic away from competitors and like minded stores.
For example, if your competitors own a local electronics store a block down the road from your location, you provide a Geo-Fence around their store to deliver ads to consumers who might be willing to use your businesses services instead.

Keep in mind that Geo-Conquesting can backfire. You are stealing away customers from your competitors. They might retaliate by creating their own set of Geo-Conquest ads, or call you out on the practice in the community.
To paraphrase, Geo-Conquesters Beware!

#4 Mobile Discounts- Going back to strategies to increase the value of your own customers, let’s talk about using mobile discounts to encourage more sales.
For example, did you know that 53% of mobile users will give you their location date in exchange for coupons and discounts? That number jumps to 60% for those under the age of 34.
This is in an era where privacy concerns have become paramount. From Apple’s Locationgate to the new Windows 10 privacy policy, tech companies have trampled on personal privacy to the detriment of many technology aficionados.

That is why it is so surprising how willing users are to give over this information in exchange for a few dollars off the purchase price.
Smart marketers can create mobile coupons that correspond with their geo aware ads. Therefore, a customer that crosses a GeoFence might be provided with an ad for a product that they can purchase today for a steep discount.
This discount gets them in the door, and looking at upsell products. Campaigns like this are the reason that the average SMS click through ratio is 36%.

#5 In-Store Mobile Hyperlocal geolocation targeting does not stop when consumers enter the stores either.
Take Ford’s landmark Beacon project. As Ford spokesperson Elizabeth Weigandt stated: “When visiting a dealership, customers first opt-in to the dealer’s free in-store Wi-Fi system, then, when they approach vehicles that are fitted with beacons, they will receive educational push notifications on various product features and technologies selected by the dealer.”

This means consumers can learn all about the features of a car from their phone as they browse through the different models on display.
No pushy sales people, just the facts. When the buyer is ready to start asking buying questions they can speak with a sales person to close the deal.
Think about all the stores you ever went to where you asked the associate for help on a specific product.
Do you remember the blank stare they gave you? Imagine instead replacing a blank stare with beacon, so all of your customers can get their questions answers.

Final Thoughts

The immense potential for targeting ads to a specific, hyperlocal spot cannot be ignored. That is because, consumers now have the ability to target prospects in their area.
A few years ago this was just a dream. Not it is reality, and marketers can take advantage of this new technology to add qualified visitors to their site.

If you are interested in connecting with hyperlocal prospects in your area, then feel free to give us a Shout.