What is location-based advertising & why is it the next big thing?

What is location-based advertising & why is it the next big thing? google.com

What is location-based advertising?

Location-based advertising hinges around the fact that wherever we go these days we always carry a mobile with us.


And most of us quite happily share our location data with the various apps we use.

This presents an opportunity for advertisers to personalise their messages to people based on their current location.

In real time. Using a person’s location data, gleaned from their mobile device, advertisers can send different messages to people depending on where they are.

Google pin location-based advertising Imagine you’re on a business trip to Sagaing.

You’re browsing on your phone and you see an ad for 30% off pants at MK fashion.

Great. There isn’t an MK within a hundred miles of where you are. Ignored. But imagine you see the same message while you’re near Myanmar Plaza, and imagine the ad is

specific to the Myanmar Plaza MK branch.

Suddenly you’re much more likely to pay attention.

This is a very simplified explanation, and there are plenty of opportunities for brands to get much more creative than that, but the basic principle is there.

Why is it so effective?

Part of it has to do with changing attitudes. As I mentioned above, consumers are becoming more relaxed about their data.

But there are a number of other reasons why this channel is proving so effective.

Let's take a look at those reasons in greater detail.


1. It’s personalised

We already know from various studies that personalised messages enjoy greater engagement than their generic counterparts, and location-based personalisation is no different.

By personalising ads to people based on their location, you are much more likely to show them something relevant.

There is simply no point making blanket offers to people in the hope they might want what you’ve got.

Finding out what they’re interested in and then personalising your message is a much more sensible approach.

Location data enables you to do that. You can make offers based on where people are.


2. It’s timely

One of the key strengths of location-based ads is that they are timely.

Because location data is served in real time, there is an opportunity for brands to target people at precise moments.


3. It’s targeted

Long gone are the days of generic display ads. With the amount of data available for marketers there is no excuse for not targeting your messages.

46% of people say they use ad blockers because ads are ‘often irrelevant’, according to an IAB UK study.

If ads are properly targeted, they are almost certain to be more relevant and therefore much less likely to be blocked or ignored.

Better ad targeting means less time and money wasted on sending your message to people who literally couldn’t care less about it.

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Source: Econsultancy

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