With the rise of mobile device usage, location has become one of the biggest factors in marketing. These days it seems that everything is connected to the internet – phones, cars and watches. These devices are often tracking our location, meaning there is an abundance of location and data available.
Location-based marketing is making use of data collected on your mobile devices from current or past locations to display relevant content to you. Meaning, location-based marketing hinges around the fact that wherever we go these days we always carry a mobile device with us.
This presents an opportunity for advertisers to personalise messages to people based on their current location. In real-time. A common way to use location data is through geofencing or geotargeting. For example, if people are in close proximity to a restaurant, a message will be sent by the restaurant to your mobile device with an offer for a free appetizer. This is a very simplified explanation.
According to Statista 20 to 22 million people in South Africa use a smartphone and the number of users is forecast to grow by more than five million through to 2023. As you can see, location-based marketing has increased with a growing demographic of mobile device users.
So next time you pass a store and receive a message based on your interest, you can be assured they are using location-based marketing.