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Target Local, Make A Fortune

Last updated 6 years ago

Have you ever heard of geo-targeted advertising?  Geo-targeted advertising allows you to target a limited group of consumers based on their physical location.  Through geo-targeted advertising, your ad is displayed based on country, state, city, or even within a certain number of miles of a postal address (Go).  So what is this hype surrounding geo-targeted advertising?  Why is it beneficial for your business?  Keep reading…

In a test campaign ran from April to June 2011 by AT&T and Placecast, eight companies experimented with geo-targeted advertising to test its effectiveness. Four companies involved in the campaign were Draftfcb clients, including Del Monte, Kmart, MilkPEP (the Milk Processor Education Program) and SC Johnson.  The geo-targeted advertising component of the campaign represented ShopAlerts, which were a combination of messages, offers, rewards, and coupons sent directly to each consumer’s phone when he or she was physically nearby a store or brand.  The campaign’s target cities comprised of Chicago, Los Angeles, New York and San Francisco, and every consumer opted in to receive the ShopAlert messages.  After the campaign ended, Draftfcb led a survey to conclude consumer outlooks and inclinations. 

Each Draftfcb client wanted to promote a different message through the ShopAlerts.  For example, while Kmart used ShopAlerts to offer mobile coupons to be redeemed at point of sale, MilkPEP focused on creating awareness for their product (chocolate milk).  Even though each business had various objectives for the campaign, the consumers only received up to three ShopAlert messages per week from just 3 businesses based on their location.  To not overload the consumers, there were two days between received messages.  All ShopAlert messages were extremely customized as well.  This text message was received by a consumer if she was within a half-mile radius of a Kmart store:

“Get $5 off any purchase of $50 in the entire store! Shop today and save @375 E Allessandro Blvd” (eMarketer).

Right after the words above, there was a link to the coupon.  Pretty straightforward, huh?

What did the survey results show?

  1. Consumers opened the ShopAlert text messages about 100% of the time.
  2. 50% of consumers wanted additional information from the brand after reading the ShopAlert text messages.

It is clear from the survey results that consumers are impacted by geo-targeted advertising.  When companies provide useful information such as a new product announcement, helpful tips, or deals, it grabs the attention of your prospective customers and elicits instant action, whether in the form of brand awareness or an actual purchase.  Therefore, geo-targeted advertising is a must have for your marketing plan. 

Want to hear something really unique?  AT&T, Draftfcb, and Placecast are discussing the next phase of the geo-targeted advertising campaign in which consumers will “indicate their preferences for hearing from certain advertisers or to choose which category of advertiser they would like to receive alerts from” (eMarketer).  This is the reality of advertising your business online: change is always constant and your business needs to embrace this truth.

What do you think about geo-targeted advertising? Does your marketing plan consist of geo-targeted advertising? Share your thoughts in a comment and learn more from the articles below!

About Alan Moore: Alan is an Internet Marketing Consultant with ReachLocal Baltimore.  His mission is to help you increase your revenues and decrease unproductive advertising expenses through proven, online marketing strategies.  He manages over $1.4 million in yearly marketing budgets and has worked with local businesses, agencies and the US government.  Give him a call at (877)655-3438 to schedule a free consultation.


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