Geomarketing: What It Is and When You Should Use It

What is geomarketing?

Geomarketing is a technique that uses location data to optimize campaigns, helping you engage with customers at the right place and time. Geomarketing can be used for both online and offline touchpoints, making it a versatile part of your toolkit. It can take several forms: a set of information that helps you with decision-making, an analytical approach to building campaigns, or a strategic channel that helps you gather demographic data. It can even be a combination of these tools.

Why do brands use geomarketing?

Demographic surveys have long been used by brands to learn more about existing and prospective customers, and historically geomarketing has been used to help retailers choose the right region to open a physical store based on that data. Now, geomarketing is continuing to evolve along with demand for services within specific geographic areas. For example, an estimated 97.1% of users in Brazil access the internet via smartphones—and with so many customers always on the move, the need for geographically relevant messages and services has increased. There are three main advantages of geomarketing:

Audience segmentation. Geomarketing is a great way to segment your audience. This way, your campaigns can extract greater results from specific locations. Use this data to drive better placement in local searches, like “pharmacies in Rio de Janeiro.”

Increased ROI. Without a geomarketing strategy, it’s possible that your campaigns will reach people located far away—who might have no use for your services. For example, that pharmacy in Rio de Janeiro won’t want to advertise to people several cities away. By employing geomarketing, brands have the power to choose exactly where their campaigns run, meaning they’ll spend less for more effective results.

More qualified leads and higher conversion. The previous point shows how targeting more specific, engaged audiences is more cost-efficient. But it can also earn you more leads, because you’ll be reaching an audience likely to have a greater interest in your product or service—especially when taking other data, like purchasing behavior or interactions on social media, into account.

If you own an ice cream parlor in Brasília, for example, and you're on a tight marketing budget, geomarketing will help you to get leads who are in Brasília, close to the neighborhood and interested in ice cream. This way, you'll get more conversions at a much lower cost than advertising to the whole city, or to all of Brasília, the state.

Here’s how to use geolocation marketing in your business.

Once you understand the concept of geolocation marketing and how important it is, you can use one of many pieces of software available to manage data and optimize your geomarketing efforts, like Google Analytics or Meta Ads. Here are three tactics to get the most out of geomarketing.

Geotargeting. Geotargeting is a way of showing users content based on their location. With a database that maps IP addresses onto specific locations, you can target by country, state or even ZIP code depending on your platform of choice.

Geofencing. Geofencing is the use of technologies such as the Global Positioning System or radio frequency identification to create a virtual geofence. In other words, it involves collecting location data from electronic devices in order to take action based on it. You can use geofencing to deliver real-time content to your customers based on their GPS data. Note that geofencing requires the use of a branded application that your audience has already downloaded and authorized to track location data.

Another way to serve content to customers is by leveraging third-party platforms like Waze, a collaborative traffic and navigation app. By using Waze Ads, your content can be shown to drivers within a certain vicinity.

Geotagging and check-in. Another interesting geomarketing tactic is the strategic use of the check-in feature. For example, if you create a Facebook and Instagram page that includes your business address, both apps will allow customers to check in. Marking the location helps others easily find the profile of the business, along with other useful info.

Geotagging is similar, in which users tag the business location to a photo or other piece of content when sharing it to social media. Again, this helps people discover the business and generates publicity for the brand. Because people tend to be influenced by their peers, this can be a great factor in analyzing consumer behavior.

You can leverage geomarketing alongside other marketing strategies, too.

Geomarketing becomes even more useful when tied to other marketing strategies. Having access to customers' location is a great way to build efficiency across your brand’s actions. You can analyze market competition in your region of choice as well as the behavior of your target audience.

Geomarketing involves large volumes of information, and you can use that additional info to optimize your processes and improve business strategies overall—like directing investments to regions with the greatest potential for conversion, or identifying areas with high demand for your products or services.  

Geomarketing truly shines when you look for quality information that can provide insights into consumption patterns or other data obtained through studies, thus improving your geomarketing performance. For example, you can look into public databases of sociodemographic data. My team in Brazil uses IBGE, PNAD and Ipea.

With that, you should be ready to begin supporting geomarketing. For my team, geographical diversity is a big part of what we do, and leveraging insight into the interest and behaviors across different regions, cities and places is a fascinating way to deliver content to build your business. By using the strategies above, you’re well on your way to meeting the diverse needs of your own customers.