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Best Location Based Marketing Guide For 2022


Location based mobile marketing is an up-and-coming form of advertising that allows brands to deliver targeted content or offers directly via their consumers’ smartphones. The idea behind this innovative strategy, location based targeting can be compared with television commercials where companies make sure they’re always within proximity for viewers on the go and may not have missed any important information about what’s happening at home!

According to Grand View Research, the global location-based advertising market was worth 62.35 billion in 2019. From 2020 to 2027, this number is predicted to grow at a 17.4% rate!

Grand View Research

As the digital landscape continues to evolve, an increasing number of businesses are embracing the power of location-based marketing within the realm of mobile marketing. Despite its nascent stage, this approach has already shown impressive results in terms of connecting with potential customers.

In this article, we will delve into the intricacies of location-based marketing – exploring its meaning, significance, and nuances, before delving into the various types that exist, the mechanics of how they function, their unique advantages and disadvantages, and lastly, real-world instances of both successful and unsuccessful implementations.

What is location based marketing in mobile?

Location based marketing in mobile is a dynamic and innovative approach to advertising that utilizes geolocation data to precisely target consumers with mobile ads and coupons. This cutting-edge technique is reliant upon the collection and analysis of geolocation data from a consumer’s mobile device, typically achieved through sophisticated GPS tracking or WiFi triangulation technology. By leveraging this data, location based mobile marketing allows businesses to deliver highly personalized and targeted ads and offers to their desired audience.

The potential applications for location based mobile marketing are vast and diverse, ranging from promoting sales and incentivizing consumer behavior, to providing valuable directions or coupons for nearby businesses, and even delivering custom-tailored content that resonates with the unique interests and preferences of individual consumers based on their precise location.

With its ability to effectively bridge the gap between digital and physical commerce, location based mobile marketing has emerged as a game-changing tool for businesses looking to stay ahead of the curve in an increasingly competitive and fast-paced marketplace.

Why is location based marketing important in mobile?

Location based marketing has become increasingly significant in the mobile space due to its ability to enable businesses to efficiently and effectively target consumers based on their current physical whereabouts. By leveraging cutting-edge geolocation data, location based marketing ensures that consumers receive timely and contextually relevant information or offers at the precise moment when they are most likely to be receptive.

Location based mobile marketing affords businesses an additional benefit, in that it enables real-time monitoring of campaign performance, thereby empowering them with valuable insights to inform data-driven decision-making for future optimization. This proactive adaptability to consumer trends and preferences ensures that businesses are continuously honing their marketing strategies to achieve optimal outcomes.

In the current fast-paced and ever-evolving business landscape, location based mobile marketing represents a formidable weapon for businesses looking to gain a competitive edge and fuel success.

Different types of location based marketing in mobiles

Each type of location based marketing technique serves a different purpose:

location based marketing

1. Geolocation Targeting

This type of location based mobile marketing uses GPS tracking or WiFi triangulation to target consumers with ads and offers based on their current location.

Benefits of Geolocation:
  • Allows businesses to target consumers with highly relevant ads and offers
  • Allows businesses to monitor the results of their campaigns in real-time
Real-time Example

A compelling real-time example of the immense potential of geotargeting is when businesses harness cutting-edge GPS tracking technologies to seamlessly and strategically target consumers who are in close proximity to their physical stores with highly personalized and contextually relevant offers and coupons. This innovative approach enables businesses to optimize their marketing campaigns by delivering precisely targeted and timely messaging that resonates with consumers in a meaningful way.

Several forward-thinking companies such as Uber, Waze, and Starbucks have already harnessed the power of geotargeting to deliver truly innovative and game-changing marketing strategies. By leveraging the vast troves of data generated by sophisticated geolocation tracking and analysis, these industry leaders have been able to gain unparalleled insights into consumer behavior and preferences, allowing them to craft highly engaging and compelling offers that drive loyalty, engagement, and ultimately, increased revenues.

2. Geofencing

This type of location based mobile marketing involves creating a virtual fence around a specific location, such as a store or event, and then targeting consumers with ads and offers when they enter the fence.

Benefits of Geofencing:
  • Geofencing is a great way to reach potential customers in large areas

You can target all users that are within your desired perimeter, which makes this method better than other less granular ones for covering huge spaces like malls or large closed spaces – since it will capture traffic right outside of stores too!

  • Geofencing technology is a game-changer for marketers

It allows them to create ads that are only seen when the user gets close enough so they can’t miss it and encourage engagement with their products or divert customers from other companies’ brands by showcasing what you have right now!

Real-time Example

An example of geofencing is when a business creates a virtual fence around their store and targets consumers with offers and coupons when they enter the fence. Businesses like Macy’s, Walmart, and Best Buy use geofencing to deliver highly relevant offers to their consumers.

3. Proximity Marketing

This type of location based marketing in mobiles involve targeting consumers with ads and offers based on their proximity to a specific location, such as a store or landmark.

Benefits of Proximity Marketing:

Proximity marketing is a great way to reach potential customers who are close to your business. It allows you to target all users within a certain radius, which makes it a more effective method than geotargeting for reaching consumers in large areas.

Real-time Example

An example of proximity marketing is when a business uses Bluetooth or NFC technology to target consumers with ads and offers when they are within a certain radius of their store. Businesses like McDonald’s, Dunkin’ Donuts, and Walmart use proximity marketing to deliver highly relevant offers to their consumers.

4. Beacon Technology

This type of location based marketing in mobiles uses small Bluetooth beacons to target consumers with ads and offers when they are near a specific location.

Benefits of Beacon Technology:
  • Beacon technology is less intrusive than other forms of mobile marketing, meaning that consumers are more likely to opt-in to receiving beacon-triggered messages.
  • Beacon-triggered messages are more customer centric as they are based on location.
  • Beacons can be used indoors, making them ideal for businesses with a brick-and-mortar presence.

Moreover, this type of mobile marketing method is in early stages and is less competitive in nature, making it an ideal choice for businesses to venture.

Real-time Example

Amidst the ongoing technological revolution, one shining example of innovation is beacon technology – a powerful tool that allows businesses to engage customers in a targeted and personalized manner. With this cutting-edge approach, customers are able to receive relevant messages directly to their mobile devices as they interact with their physical environment.

For instance, upon entering a store and granting permission, a customer could receive a timely and enticing notification regarding a product they are currently in close proximity to, such as “Exciting news! Today, all shoes are available at a jaw-dropping 20% discount!” Notably, major retailers like Macy’s and American Eagle have already recognized the potential of this technology and are actively integrating it into their operations.

5. Wi-Fi Marketing

Wi-Fi hotspots target consumers with highly personalized advertisements and offers based on their geographic location. This type of cutting-edge marketing approach has been specifically designed to ensnare the attention of consumers who happen to be in the immediate vicinity of a particular location.

Benefits of Wi-Fi Marketing:

The benefits of Wi-Fi marketing are myriad and manifold. This method represents an exceptional means of tapping into potential customers who happen to be situated proximate to one’s business. Moreover, it has been shown that Wi-Fi marketing can serve as an outstanding tool to enhance customer retention rates by prolonging the length of time that customers remain in a store or office.

Real-time Example

Allow us to provide you with a real-time example of Wi-Fi marketing in action. Imagine, if you will, that you are a purveyor of goods and services, and you have strategically established a Wi-Fi hotspot within your store.

In the event that a customer connects to the Wi-Fi, they will be presented with a landing page replete with your latest deals, as well as a multitude of tempting offers designed to pique their interest. Additionally, businesses in the food and beverage industry, such as restaurants and cafes, can harness the power of Wi-Fi marketing to apprise customers of their latest and greatest specials, thereby compelling them to indulge in a gastronomical delight or two.

How it Works:

As for the mechanics of Wi-Fi marketing, the process is fairly straightforward. Essentially, businesses establish a Wi-Fi hotspot within their store or office, and when customers connect to the Wi-Fi, they are transported to a customized landing page that provides them with all the pertinent information about the business, along with the latest deals and offers that are sure to tantalize their senses.

5. Geo-Conquesting

This type of location based mobile marketing involves targeting consumers who are near a competitor’s location with ads and offers to “conquer” them as customers.

Benefits of Geo-conquesting:
  • Can be very effective in areas with high foot traffic
  • Can be customized to target specific competitor locations
  • Can be used to target consumers who have visited a competitor’s location recently
Real-time Examples:

A range of industries – from eateries to boutiques – are constantly seeking new and innovative ways to attract and retain customers. Picture this: a cozy coffee shop, nestled comfortably amidst the bustling streets of a city center, targeting caffeine-starved consumers who happen to be loitering in the vicinity of a rival Starbucks outlet. By displaying enticing advertisements for their own beverages to those consumers, they can drive foot traffic and ultimately, conversions. It’s no wonder that this tactic has become increasingly popular among businesses seeking to gain an edge over their competitors.

How do location based marketing campaigns work?

Location-based marketing campaigns employ intricate technologies to enable advertisers to target potential consumers with relevant ads and offers, customized based on their current location. To do so, they rely on a vast array of cutting-edge tools such as GPS tracking, WiFi triangulation, and beacon technology to precisely locate the consumer.

Once the target’s location is established, the campaign can unleash a flurry of location-based marketing ads and offers that inundate the consumer, enticing them with a variety of promotional messages. The delivery channels are diverse and dynamic, including SMS, MMS, push notifications, or in-app messages, allowing the marketer to reach the consumer through various mediums.

Overall, location-based marketing campaigns leverage advanced techniques and technologies to deliver personalized messages to consumers at precisely the right time and location, fostering stronger relationships between consumers and brands.

How to Get Started with Location Based Mobile Marketing

To begin with, one must determine the kind of location-based marketing campaign that is best suited for their objectives. This decision is critical as it will inform the technology and targeting criteria that will be necessary for success.

The next step involves gathering the requisite data, which could include GPS coordinates or WiFi triangulation data. Obtaining this data may require accessing a consumer’s mobile device or seeking the assistance of a third-party provider.

Finally, you must choose an appropriate delivery channel for your location-based ads and offers. This could involve selecting from various channels such as SMS, MMS, push notifications, or in-app messages.

When all of these steps have been completed and you have conducted your research, it’s time to commence crafting your location-based mobile marketing campaign. Remember, the more perplexity and burstiness you can inject into your writing, the more effective your content will be!

Location Based Mobile Marketing: The Benefits

1. Reach potential customers at the moment they are most likely to be interested in your product or service: To connect with prospective customers at the exact moment when their interest is piqued. How, you ask? The answer is simple: by targeting consumers based on their current location. The brilliance of this method lies in its ability to deliver pertinent information and offers to the customer’s fingertips precisely when they’re most likely to be intrigued by them.

2. Increase conversion rates: Its effectiveness is unparalleled, with research studies demonstrating that it can skyrocket conversion rates by up to 10 times! This substantial improvement can be attributed to the power of being in the right place at the right time and delivering the right message.

3. Improve customer loyalty and retention: Personalize the experience of the user with his preferences and needs to get in the name. By customizing the content, customers are more likely to feel exclusive, leading to increased loyalty and retention.

4. Gain valuable insights: The potential of location-based mobile marketing campaigns extends beyond just capturing the attention of potential customers. In fact, the data collected through these campaigns can provide valuable insights into consumer behavior, allowing businesses to fine-tune their marketing strategies and optimize future campaigns with surgical precision.

5. Increase ROI: Some studies have demonstrated their ability to amplify ROI by a staggering 700%, providing businesses with a substantial return on their investment. This makes location-based marketing a powerful tool in any company’s arsenal, one that promises to deliver results that are anything but ordinary.

Location Based Marketing: The Best Practices

If you are looking forward to starting a location based mobile marketing campaign, then here are some of the best practices that you need to follow:

1. Define your objectives: For any campaign, the first step is to define the busienss goals. Answer what do you hope to achieve with your campaign? This will help you to navigate through the process with ease.

2. Keep it relevant: Location based mobile marketing campaigns should be relevant to the current location of the consumer and the target audience mindset.

3. Personalize the experience: Location based marketing camapign if personalized to the consumer interest will generate a greater engagement rate and will probe the consumers to focus on your brand more.

4. Collect accurate data: Collect data consumer’s mobile device or a third-party provider accurately and target accordingly.

5. Test and optimize: Test the marketing campaign before launch to ensure that you are getting the most out of your investment and that your campaign is truly effective.

Location Based Marketing: The Worst Practices

As with any camapign, if there are benefits, there are also certain practices those should be avoided to obtain success.

1. Spamming: One cardinal sin that businesses should steer clear of is spamming their audience with irrelevant or unwanted ads and offers. Such a faux pas not only runs the risk of annoying consumers but also poses a serious threat to a brand’s reputation, potentially resulting in long-term damage.

2. Retargeting: In the pursuit of maximizing reach and engagement, another pitfall to be mindful of is over-targeting your consumers. This overzealous approach, characterized by bombarding them with an excessive number of ads and offers, can have the unintended consequence of overwhelming and alienating your audience, ultimately undermining your marketing efforts.

3. Not testing: One of the most critical mistakes to avoid is neglecting to test your location-based mobile marketing campaign. Without proper testing, you may not known where you fall short and the campaign may feel the meet the intended results by wasting time and resources.

4. Locations that don’t scale: When your target audience are not in a particular location or if there is a location that is not scalable, refrain from targeting such locations in your campagin.

5. Not using real-time data: Use real-time data to accurately target your customers and educate yourself with trends and what consumers are looking for to ensure your campaign is a resounding success.

Location Based Marketing: The Future

Nevertheless, businesses must not wait for these future developments to start reaping the benefits of location-based mobile marketing. The current market demands immediate action and strategic implementation of location-based mobile marketing to remain ahead of the competition. By devising the appropriate marketing tactics, businesses can leverage location-based marketing strategies to boost their revenues and engage with more potential customers.


This marketing strategy not only offers businesses the ability to track real-time performance, but also empowers them to gather valuable insights that can shape future campaign optimizations. In this way, businesses can stay ahead of evolving consumer trends and preferences by constantly refining their approach to achieve optimal results.

In today’s cutthroat and ever-changing business landscape, location-based mobile marketing can serve as a game-changing asset for savvy businesses that want to stay one step ahead of the competition.

However, for businesses looking to stay ahead of the pack in today’s fiercely competitive market, waiting for the future is not an option. It’s essential to take advantage of location-based mobile marketing now to gain a competitive edge. By devising a shrewd strategy, you can turbocharge your brand’s profitability and expand your reach to prospective clients.

At 12Channels, our team excels in location-based mobile marketing and can provide you with a custom solution that meets your goals and generates revenue. So what are you waiting for? Contact us today and discover how we can help your business succeed in ways you can’t imagine!

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