As mobile marketing tactics go, geo-targeting is highly successful, with consumers 30-300% more likely to click a geo-targeted ad compared to an untargeted one. This success rate has not been lost on the big brands, 58% of which employed geo-location strategies during the first quarter of 2013 – more than double the 27% of the previous year.Location-based marketing, also known as geo-targeting, is becoming one of the most useful weapons in the retail marketing arsenal. The technology allows businesses to contact customers as they enter a certain geographical radius.
Consumers like geo-targeting because it only gives them in-store offers at times they can actually use them. Businesses are getting ever-more sophisticated in the way they use the technology; many are starting to use micro location-based mobile marketing strategies, whereby customers download an app in-store and receive personalized offers once they enter the store.
So what about the stragglers? If it’s one of the most effective mobile marketing solutions, why aren’t all companies using geo-targeting? Despite the obvious benefits, the complexity of using the technology effectively – and ethically – is beyond the ken of many businesses, especially those who lack the financial clout for high-end tech support. Matching a person’s location to a relevant communication is achieved in a number of ways, and not all of them will be feasible.