It’s a good idea to keep track of noteworthy location-based marketing statistics. It allows you to learn about the advantages of the strategy and what to expect from your business. 

In this article, we’ll reveal a few more interesting statistics that help provide content for proximity marketing. 

Furthermore, we’ll share some of the benefits of using geolocation data to target customers. You’ll see the investment into these strategies is well worth the cost and effort. Finally, we’ll share answers to commonly asked questions. This can help you clear up some questions when getting potential customers from proximity marketing. 

Keep reading to learn more about the statistics you should know for location-based marketing! 

 

Statistics graphs on paper on a table.

Location-Based Marketing Statistics: 3 Interesting Data Points To Consider

Now, let’s turn our attention to the different statistics that provide insight into the effectiveness of location-based advertising. This will provide context for the marketing practice so you can decide if it’s the right step for your business. 

1. The Primary Use of Location Data Is For Targeting (67%)

The biggest benefit of using location-based services to boost marketing performance is targeting, according to 67% of marketers. You can narrow down the audience to only the users with a relatively high chance of showing customer loyalty. 

Here are some of the top advantages of customer target with location data:

  • Enhanced personalization: Utilizing geolocation data enables businesses to customize content and offers specifically for users based on their precise location. This targeted approach increases the relevance of promotions, which makes customers more likely to engage with the content. Additionally, by delivering location-specific experiences, companies can significantly improve customer satisfaction.
  • Improved customer experience: Understanding a customer’s location allows businesses to provide information tailored to their immediate surroundings. It might be nearby stores or local events. This personalized approach not only enhances convenience but also builds a stronger connection with the customer. The idea is to offer relevant details at the right time to boost overall engagement.
  • Better market analysis: Geolocation data provides insights into consumer behaviors and preferences across different regions. This information helps businesses segment their market more effectively and tailor strategies to meet the unique needs of each area. Furthermore, by understanding geographic trends, companies can optimize their marketing efforts and make data-driven decisions that enhance overall performance.
  • Optimized advertising spend: Businesses can reduce unnecessary ad spending by focusing marketing efforts on specific geographic areas. Also, geolocation targeting ensures you can allocate advertising budgets efficiently. This ensures you’ll reach regions with the highest potential for return on investment. 

The word “Analytics” with pencil underneath with a green background. 

2. 9 in 10 Marketers Say Location-Based Marketing Leads to More Sales

This statistic suggests that geotargeting marketing strategies are highly effective. It gives confidence that investing in these strategies can provide a positive return on investment. 

However, the high success rate also depends on what decisions you make while executing the marketing campaign. You’ll need to constantly test customer engagement to optimize your strategy. 

3. 8 in 10 Marketers Use Location Data in Their Marketing and Ad Campaigns

This data point shows the importance of using geolocation data to remain competitive. Also, it speaks to the effectiveness of location data in boosting marketing performance. 

Furthermore, as technology improves, the availability and accuracy of location-based data also improves. This means marketers have more access to data from a wider range of tools and software solutions. 

The words 'marketing strategy' are on a crumpled piece of paper.

Impact of Location-Based Advertising

Do you want to know about the impact of location-based advertising? It’s important to understand the impact so you can figure out the top reasons to go for location-based marketing. Here are the top points of impact that you should consider:

  • Customized local offers: You can tailor promotions to specific local events or cultural trends, which increases their appeal to targeted audiences. This approach not only attracts attention but also fosters a deeper connection with consumers. It resonates with their immediate environment, which ultimately enhances brand loyalty and increases conversion rates.
  • Competitive advantage: Leveraging location data allows companies to reach customers in specific areas with timely and relevant offers. This strategic approach helps capture market share by outmaneuvering competitors who are not using the strategy. Therefore, you can target smartphone users without the competition by sending them competing offers. 
  • Increased brand awareness: Targeting ads based on location helps build brand awareness in specific regions. This ensures that marketing messages resonate more deeply with local consumers. The targeted approach not only enhances visibility but also establishes a stronger presence in key areas. Consequently, your brand will enjoy greater recognition and trust within the community.
  • Efficient resource allocation: Focus on high-performing geographic areas and allocate marketing resources more effectively. This targeted strategy maximizes campaign efficiency and effectiveness. The end result is reducing waste and ensures that you focus efforts on where they will have the most impact. 

A person writing the word audience on a whiteboard. 

Location-Based Marketing Growth Best Practices

You must follow the best practices to ensure your location-based marketing growth is top-notch. 

Here are some of the top best practices that you should consider to increase the odds of success:

  • Optimize for mobile: Make sure that all marketing content is mobile-friendly since most location-based interactions occur on smartphones. This includes quick loading times, easy navigation, and responsive design. Try using your own smartphone and interact with the offers. 
  • Utilize geofencing: Set up geofences around strategic locations like competitor stores or popular landmarks. This triggers timely notifications and promotions when potential customers enter these areas. You can provide location-based discounts to increase sales. However, you’ll need to find software to take advantage of geofencing technology. 
  • Personalize offers: Use location data to deliver personalized offers and recommendations that cater to the individual preferences of users. This increases the likelihood of engagement and conversions for your products. You’ll need to test offers to find the most effective approach. 
  • Monitor and analyze performance: Continuously track the effectiveness of location-based campaigns. Then, analyze metrics such as foot traffic, engagement rates, and conversion rates to refine strategies and improve outcomes. Also, some marketing platforms provide AI-based suggestions to simplify the decision-making process. 
  • Leverage local insights: Understand the specific needs and preferences of local audiences. Then, you’ll need to tailor your messaging and offers based on regional trends and customer behaviors. This increases the chances that your location-based push notifications are effective. 

A red question mark with a black background. 

Frequently Asked Questions

Are there any challenges with implementing location-based marketing?

Yes, location-based marketing challenges include ensuring user privacy, obtaining accurate location data, and integrating location-based strategies into existing marketing plans. 

Businesses must also consider the potential for over-targeting, which can lead to user fatigue. This means you must carefully manage the frequency and relevance of their messaging.

How does location-based marketing impact advertising ROI?

Location-based marketing improves advertising ROI by delivering highly targeted ads to users in specific locations, reducing wasted ad spend. 

Therefore, by focusing on audiences more likely to convert, businesses can maximize the effectiveness of their campaigns.

What types of businesses benefit most from location-based marketing?

The businesses that can benefit the most from location-based marketing include retail stores, restaurants, hospitality businesses, and service providers. These businesses can leverage geographic targeting to attract nearby customers and promote time-sensitive offers. 

The result is an increase in in-store visits, which leads to higher sales and customer engagement.

How do businesses use geofencing in marketing?

Businesses use geofencing in marketing by setting up a virtual perimeter around a specific location. When a user’s mobile device enters this area, it triggers targeted ads or notifications. Therefore, businesses can use geofencing to engage potential customers near their stores, competitors’ locations, or popular events. 

However, your making software must provide geofencing tools to take advantage of this technique. Keep this in mind when searching for the best marketing software to elevate your proximity marketing strategies. 

What technologies are used in location-based marketing?

Location-based marketing uses technologies such as GPS, Wi-Fi, Bluetooth beacons, and geofencing. These technologies help determine a user’s location with varying degrees of accuracy. 

This enables businesses to deliver targeted messages and offers based on the user’s proximity to certain locations.

A person holding a mobile device and looking at a map. 

Can You Trust Geolocation Statistics?

You can trust geomarketing statistics when you source them from reputable outlets. The top publications, journalists, and businesses conduct these studies. You can harvest this data to help you understand the strengths and weaknesses of location-based marketing strategies. 

Keep an eye out for more location-based marketing statistics to keep up with the latest trends. This ensures you can take advantage of the latest technologies that improve your ability to target customers based on location. 

Do you want to pursue a geolocation marketing strategy of your own? Then, consider using geoPlugin for a toolkit that allows you to get geolocation data from IP addresses. The accuracy of our data is second to none, which will improve the quality of your marketing campaigns. 

Give geoPlugin a try today to evaluate the geolocation accuracy for yourself!

author avatar
GeoPlugin Team
The GeoPlugin Team is a dedicated group of seasoned writers, and tech enthusiasts committed to making geolocation technology accessible to all web users. Our team combines expertise in digital advertising, IP geolocation, and web development. They also have a history in digital marketing, specializing in writing content about the tech industry, AI, and cybersecurity. At GeoPlugin, we understand the importance of knowing where your visitors are located to enhance website functionality and user experience. Our blog team’s articles provide you with the knowledge to leverage geolocation data effectively.