Aug 01

Geomarketing 101: A Complete Marketer’s Guide (2023)

Geomarketing 101: A Complete Marketer’s Guide (2023)

Learn the basics of geomarketing and gain insight into how to maximize its ROI potential for your business. Discover tips, ideas, and strategies in 2023.

“Pharmacy near me.”

“Restaurants near me.”

Sound familiar? If you’re like most Americans, then you make searches like this all the time. 

These user behaviors fuel the fire of geomarketing—a low-cost, high-ROI marketing tactic that boosts campaign effectiveness by as much as 80%

Most of these searches are performed on smartphones, which now grace the hands of 85% of Americans. And although consumers relish the convenience offered by proximity-based searches, most businesses still need to explore its full potential. 

In this article, we’ll cover the basic principles and advantages of geomarketing and some tips and ideas to help you maximize your results (even if you’re B2B). 

What is Geomarketing?

Geomarketing is the practice of targeting timely messaging for consumers based on their geographic location. Considering that 8 in 10 mobile users leave geolocation tracking on for better personalization, businesses have access to tons of valuable data that they can use to create accurate location-based customer segments and deliver the right message at just the right place.

3 Types of Geomarketing

  • Geotargeting

Geotargeting is marketing to localized prospects with a magnifying glass. It’s the art of zooming in to an exact geographic area to deliver tailored messages that are surefire hits. 

By using location data, companies can precisely target ads that respond to a qualified consumer’s locale—whether it be 10 miles from an auto dealership or within feet of someone who has opted to receive flash sale updates on their phone. 

Not only can this technology deliver content tailored to user behavior, but it can also exclude unwanted audiences or locations for extra efficiency. For instance, when users sign into a food delivery app like Uber Eats or DoorDash, geotargeting helps present options to users within a certain number of miles of local restaurants. 

  • Geofencing

Instead of a physical radius targeting a region or city, geofencing can track users to very specific places, such as a store. For instance, a campaign for a local florist might deliver ads to mobile devices when they stepped inside jewelry stores near their affiliated floral boutiques on Valentine’s Day. 

The campaign assumes partners purchasing jewelry might also intend to buy flowers, smartly sending potential customers boutique locations and directions via social feed or search. (You can find a real-life example of this kind of geofencing in action here). 

Another popular way to use geofencing is through text message marketing. Users can opt to receive text messages about special offers and incentives when they come near your store, allowing you to nurture the consumers who are already nearby. Brick and mortars use this technique to boost foot traffic and reach people at just the right time and place.

  • Geoconquesting

Are you picturing a medieval warrior galloping into a conquered kingdom to pillage for treasure? This is like that, except admittedly less dramatic (and violent). 

Geoconquesting allows businesses to send ads directly to consumers shopping in competitors’ stores. For instance, if a local clean beauty brand opens a new storefront and hopes to attract more customers, they might push ads featuring discounts to people visiting nearby competitors like Ulta or Sephora. 

Whole Foods could target Trader Joe’s shoppers, or McDonald’s could target Burger King customers. Find a competitor that attracts your target audience, and get to work persuading them to patronize your business to meet their needs. 

Benefits of Geomarketing For Businesses 

Geomarketing has been gaining traction over the past few years due to its wide range of benefits: 

  • Location-Specific Targeting: Geomarketing allows you to target potential customers in a specific location or area, ensuring that your message reaches the right audience in the right place.
  • Better Return on Investment (ROI): Geomarketing campaigns are highly targeted and can provide a better ROI than traditional marketing campaigns. This is because your ads are only seen by people who are most likely to be interested in what you have to offer.
  • Increased Customer Engagement: Geomarketing tactics such as geofencing, geotargeting, and geoconquesting allow you to engage with customers more relevantly. 
  • Increased Foot Traffic: Geomarketing tactics like geofencing can help increase foot traffic to local stores by sending potential customers directions and discount codes for nearby boutiques.
  • Improved Brand Awareness: Geomarketing ensures that your brand is seen in the right place at the right time, helping to build awareness of your products and services.

What Are the Challenges of Geomarketing?

One challenge with geomarketing is its reliance on mobile technology. As a result, your message must be tailored to the device your target audience uses to ensure a smooth user experience. This requires a deep understanding of user behavior and preferences, including knowledge of the unique capabilities of the latest user devices. 

There’s also the issue of privacy concerns. Geomarketing can raise questions about data collection and usage, so ensuring you’re using the right technology and practices to protect user data is vital—especially if you cater to a European market. 

Geomarketing Frequently Asked Questions

Can B2B marketers use geomarketing?

While B2B marketing often targets businesses as a whole rather than individual consumers, you can still use geomarketing to reach potential customers at just the right time and place. For example, you could employ geotargeting to send ads about your products or services directly to businesses near trade shows or expos. 

What is the best way to track customer behavior with geomarketing?

The best way to track customer behavior with geomarketing is by using data-driven tools and techniques such as heat maps, tracking cookies, and analytics. With this information, you can tailor your geomarketing campaigns for maximum effectiveness.

  • Heat maps allow you to visualize what areas customers are visiting on your website or app.
  • Tracking cookies allow you to monitor user activity across multiple devices.
  • Analytics can provide actionable insights into customer behavior, such as how long people spend on specific pages or which products they’re most interested in.

Want a Thought Partner On This?

If you’re ready to maximize your returns on geomarketing, we can help. Our experienced marketing professionals will work with you to create an effective geomarketing strategy that meets your business objectives. Contact us today to learn more about how Hey can help you succeed with geomarketing. 

Chris Lloyd

Chris Lloyd

Managing Partner
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