In the ever-evolving landscape of digital advertising, where personalisation and deep funnel metrics reign supreme, marketers are leveraging advanced strategies to connect with their audiences seamlessly.
Harnessing the power of location-based targeting, encompassing both real-time precision and insightful historical analysis, these marketers have unlocked a new dimension in audience understanding across the customer cycles of Awareness, Consideration, and Purchase.
Those who embrace location-based targeting for their digital campaigns can expect to see three main benefits.
Enhanced Relevance
Relevance is the key to capturing and maintaining an audience’s attention. Accurate location-based targeting transforms advertising into a personalised experience. By pinpointing audience locations with great accuracy, brands can deliver content that aligns precisely with users’ immediate surroundings.
For example, picture a BFSI brand offering home loan products being able to target and tailor their advertising campaigns to all prospective home buyers who have been visiting the latest properties for sale in the last 3 months – that’s the power of enhanced relevance. This level of personalisation not only sparks interest but also establishes a connection between the user and the brand, making the advertising experience more meaningful.
Elevated Engagement
Real-time targeting takes engagement to new heights by reaching users precisely when they are most receptive. Imagine an FMCG brand being able to target buyers at grocery stores in real time! This timely engagement significantly increases the likelihood of users interacting with the ad.
Furthermore, tailored content that aligns with users’ current context fosters a sense of connection and resonates with their immediate needs. As a result, brands leveraging accurate location-based targeting experience elevated levels of engagement that go beyond mere exposure.
Improved Conversion Rates
Precision in targeting translates directly to improvements in conversion rates. In today’s digital advertising landscape where budgets and the cost efficiency of ads are monitored ever so closely, accurate location-based targeting narrows the funnel by delivering ads to users who are not only interested in the product or service but are also geographically positioned to take immediate action.
Consider an electronics brand promoting offers to users who have been seen visiting their competitor’s showrooms in the last 15 days. The result? A higher conversion rate, as the targeted audience is more likely to visit the store and make a purchase. This focused approach ensures that advertising resources are directed toward the most responsive segments, optimising the conversion journey and ad spend.
Can Brands Afford to Neglect Embracing Accurate Location-Based Targeting?
In short, no.
Failure to harness accurate location data may result in missed opportunities for hyper-localised engagement.
Consider a scenario where a retail brand overlooks the utilisation of location-based targeting and fails to reach users in close proximity to a new store that is opening. Competitors leveraging this strategy gain a substantial advantage in targeting the same local audience, potentially capturing market share and leaving the brand with missed opportunities for immediate customer acquisition and brand loyalty.
Brands may also see impacts on their ROI and ROAS as a result. Inefficient allocation of ad spend becomes a concern when location precision is ignored. Ad campaigns may disperse resources across a broader audience without the ability to target specific geographic segments.
This lack of focus can lead to inefficient spending, as the ads are not optimised for the most responsive customer segments. In turn, this inefficiency impacts the ROI and ROAS as advertising resources fail to deliver the desired results, leading to a less effective and more costly campaign.
How To Harness Accurate Location-Based Targeting in 2024
Accurate location-based targeting is a cornerstone for navigating the modern digital advertising landscape.
When planning campaigns for 2024 (and beyond) ensure you or your agency are partnering with a platform, that supports accurate location-based targeting so you can reach the right audience at the right time.
