5 Reasons Why Location-Based Marketing Will Dominate in 2020

Technology is advancing at a rapid pace, and most of the marketing trends now focus on marrying the latest advancements with customer engagement techniques. A closer look at the trends in fact shows that a successful marketing campaign provides positive customer experiences, which improves customer loyalty.

Location-Based Marketing image for article 43m20In a survey, 73% claimed that customer experience was a deciding factor for choosing a company or brand to support. One of the most effective tools that marketers can use to ensure customer satisfaction is location-based marketing.

What Is Location-Based Marketing?

Location-based marketing or geotargeting entails using apps or websites to alert consumers within a specific geographic location about deals and launches. By determining a customer’s geographic location, marketers can easily tailor-fit their efforts to improve customer experience.

As such, location data increases the effectiveness of campaigns, drives sales, and enhances customer engagement. As many as nine out of 10 marketers declare that efforts that use location data post higher sales, more extensive customer bases, and better customer engagement.

For several years now, marketers have been harnessing the power of location-based marketing to reach out to target consumers and improve customer experience. It will continue to disrupt the market again this year. Read on to find out how.

Why Will Location-Based Marketing Dominate in 2020?

Reason #1: It increases revenue for mobile marketers through mobile app localization

A mobile marketer’s primary goal is to increase the visibility and exposure of an app. Once achieved, the next step is to increase the number of active users per month, which will boost sales and revenue. To improve reach, marketers customize their apps to serve multiple users with different preferences and located in several regions through mobile app localization.

The use of mobile app localization with IP geolocation lets marketers broaden their user bases and gain access to the global market. With the technologies, marketers can gain an edge over the competition. A study showed that app localization could result in a 26% revenue increase per country and a 128% improvement in the number of downloads per state. These improvements are achievable within a week from the launch of a localized app.

Reason #2: Smartphone use continues to increase

It took the first iPhone only five years to surpass desktops in terms of traffic. From then on, mobile web use skyrocketed. A such, it has become imperative for marketers to come up with mobile marketing strategies that allow them to gain access to a broader user base. They can go beyond point-in-time pin drop location services to augment apps with more relevant user data. Doing so would allow them to gain more context on user experience that can further improve their customers’ engagement and loyalty.

Geolocation integration into an app allows marketers to determine users’ behavioral patterns, thus allowing them to customize features to enhance real-time user engagement. For example, a gaming app can send a notification once it recognizes that the user typically uses it at a particular time, say, during his/her daily commute to work.

Reason #3: Most consumers focus on social networks

Marketers now realize that their target audiences spend most of their time on social networks. Location-based social media marketing entails the use of geo-specific tools to show where users post social content. Marketers can filter results by social media channel, keyword, date, time, and user. These tools will give them a real-time view of the social media landscape in a specific location. They can then more easily adjust their marketing campaigns.

Marketers can send notifications to target customers who are within range of their physical stores. They can even use location-based social media tools to generate new leads as to where customers spend most of their time.

Reason #4: The on-demand economy is on the rise

The on-demand economy has risen to greater heights. For this reason, customer expectations increased as well. And so, for marketers to succeed, they must provide what the consumers want when they want it. To do this, they must effectively use location-based marketing technologies such as geofencing and beacons.

Reason #5: Marketing trends focus on people over devices

One of the marketing trends of 2020 involves a higher focus on people rather than devices. For this reason, most marketers use location-based marketing to detect a user when they are within a target range. In a 2019 survey, 96% of users reported seeing an advertisement that used their location as a reference.

Additionally, about 66% of users are comfortable with such apps since these allow them to save time and effort. Around 79% of users, in fact, activate geo-tags to specify their location on social media apps.

Larger geographical areas

Location-based marketing is better used when marketers target consumers within a larger geographical area. Marketers who want to bring their brands and services to a broader market can use IP Geolocation API to improve their marketing campaigns.


Interesting related article: “What is Marketing?”