Location-based marketing (LBM) is a direct marketing strategy that uses mobile devices such as smartphones to offer potential customer products at the nearest sales or facebook geofencing. Users will receive notifications on their smartphones as soon as they are near a predetermined location and must agree to receive push messages. Location-based marketing requires a single user opt-in, usually associated with application usage. The application accesses mobile location services and notifications are initiated by this location data when the user is in range. The aim is to reach users at the point of sale to promote products and increase online customer loyalty and the relevance of the message being emitted.
Different approaches exist in the field of location-based marketing such as location determination and the form of approach.
Geofencing: In geofencing, virtual boundaries are drawn, which triggers the delivery of ad messages when crossed by users. Mobile devices exchange signals and information with navigation satellites or mobile radio towers.
Proximity targeting: Ad media is played within a certain range. This area is determined by the technology used. WIFI, NFC, Bluetooth, and Beacons are possible options. Focusing on short-range radio technology makes high precision, but its range is much lower than geofencing or similar forms of targeting.
Local context targeting: Promotional material sent using location-based data and additional information about users. This is also described as data enrichment. In addition to the current location, demographic data can also help display user ads that are more relevant to them or display advertising messages. The aim is to increase the range compared to Geofencing.
Location social targeting: When users enter a restaurant, cafe, or bar, they often check social media such as Facebook, Twitter, Foursquare, or Yelp. Location social targeting focuses on this check-in and application usage and/or browser history are read and linked to location-based data.
The technology used is different, but in many cases requires explicit consent from the user:
– GPS: The global positioning system works with longitude and latitude and can accurately find devices up to 10 meters. Most smartphones, tablets, and laptops have integrated location modules. This technology is not very accurate inside buildings because signals cannot always be received properly.
– Bluetooth: Wireless information can be transported by Bluetooth and Beacon (Bluetooth Low Energy). With the right system and receiver, targeting can be adjusted according to the building. Sometimes special applications are needed.