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The Beginner’s Guide to Geomarketing and Geotargeting Marketing Success

Geomarketing is one of the most effective digital marketing strategies available to marketers today. It allows you to hyper-target and directly engages with potential customers or clients in your area by sending them your offers straight to their mobile devices.

As such, geomarketing might be the solution to the competitive advantage that you have been looking for. If you do not have a location-based marketing strategy in place, you could be losing out on a lot of potential leads.

Here’s what you need to know about geomarketing.

What is Geomarketing?

This refers to any type of marketing that incorporates location-based intelligence so as to improve the odds of your message reaching your target audience at the most opportune moment.

While the desired results of geomarketing can be attained using various means, the underlying theme is that location data or awareness must be utilized as a part of the marketing effort – thus, the ‘geo’ element.

The guiding principle behind geomarketing is, ‘where you are is who you are.’ The idea is that the locations a potential customer visit tells a lot about them. Thus, they can be used as predictors of intent.

For example, if a consumer has been visiting several car dealerships over the past week, it is highly likely that they are looking for a car. Thus, a dealer who can utilize geomarketing and send them a relevant ad or offer is likely to make a sale.

Types of Geomarketing

As mentioned earlier, geomarketing is a marketing strategy that encompasses the various types of location-based marketing tactics. Thus, it is not a tool by itself. As such, if you are looking to target your customers based on their location, you can utilize either or all of the following geomarketing tactics:

  • Geofencing
  • Geotargeting
  • Geoconquesting
  • Beacons

We shall look at each of these geomarketing tools in broader detail in the following sections.

What is Geotargeting?

In geotargeting, marketers usually target a potential customer using their web browser’s IP address instead of GPS location. This practice has been around for a long time. Since the inception of the internet, websites have been utilizing their visitors’ IP addresses to serve them with personalized content. For instance, you might have noticed that an online retail store usually displays your local currency even though the store might be international. This is a premier example of geotargeting in action.

Nonetheless, there is a drawback to using geotargeting. IP addresses are not usually very precise; they only give the general location of the consumer. As such, it is incredibly difficult to target a specific neighborhood using just an IP address.

Therefore, geotargeting is better suited for broad regions, such as an entire city or state. You should consider geofencing if you want to be more specific in your targeting efforts.

What is Geofencing?

This is the mobile generation’s solution to conventional web-based geotargeting. In geofencing, marketers utilize the consumer’s mobile device’s precise GPS location instead of its IP address. The benefit of geofencing is that the GPS location updates itself if the consumer moves. As such, it allows for more relevant and timely messaging.

For example, if a shopping store’s app detects a potential customer near it, it can use time-limit marketing strategies such as offering a discount coupon. This can serve as an incentive for the customer to pay your store a visit.

Additionally, geofencing parameters can be calibrated to suit your goals and objectives. For example, you can have a fence as wide as the city or as small as a street. Nonetheless, geofencing has been found to work better for smaller regions, such as specific streets or neighborhoods. It can be an especially handy tool for brick-and-mortar stores and restaurants looking to direct more foot traffic into their establishments.

What are Beacons?

Beacons allow you to target your audience even more precisely than geofencing. A beacon is a small device that receives location data from any nearby mobile device via Bluetooth. Since beacons are Bluetooth-based, they can be used in areas that do not have good cell reception, for instance, the interior of a department store.

The data that a beacon collects usually gives the app precise details about the customer’s exact location. This can help marketers provide their customers with a better in-store experience by directing them to products they are likely to be interested in.

Nonetheless, there is a drawback to using beacons. They will only work as long as the customer’s device’s Bluetooth is turned on and is within the beacon’s range.

Additionally, beacons can be challenging to use on public property since they have to be physically placed, secured, and monitored.

What is Geoconquesting?

This is a geomarketing tactic that utilizes a geofence to draw away consumers away from the competition. This, therefore, means that rather than having a defined geofence around your establishment, you create a geofence around your competitor’s store and use it to draw their potential customers to your business instead.

For example, if a small, local coffee shop is looking to stay competitive in the presence of giants such as Starbucks, it can create a geofence around those stores then target their consumers with tempting deals. This technique, however, can also be used by larger businesses looking to acquire all potential customers within their vicinity, using the same incentives.

Benefits of Geomarketing

Localized marketing allows your businesses perks such as:

Local Optimization

Geotargeting is one of the most effective ways of getting your business to rank highly in local searches. This is because of the relevance and timeliness that it allows your messages to have. Search engines use those two factors as parameters when deciding how to rank a local business.

Improved Data

If a consumer comes to your business as a result of your geomarketing efforts, there are a lot of metrics that you can evaluate. Geomarketing allows your valuable data, such as message effectiveness, stay durations, how often consumers visit your establishment, and when they are near your location.

When you combine this data together with what you get from analytical tools such as Google Analytics, you will have pretty good information that can help you improve your marketing tactics.


The data that you gather using geomarketing can also help you tailor-make offers for your customers. This is especially relevant since research shows that up to 74 percent of consumers usually experience dissatisfaction when the information provided by a business does not match their individual interests.

As such, consumers are more than likely to transact with businesses whose offers match their interests. Geomarketing data provides valuable information regarding the interests of the local population, and this allows you to customize your offerings accordingly.


Geomarketing can make your marketing expenditure more effective. Since it allows you to reach only the desired audience, you will not spend as much as you would when targeting a broader audience.

Trends in Geomarketing

In addition to Geoconquesting, predictive analytics via artificial intelligence is slowly revolutionizing how geomarketing is done.

Predictive analytics algorithms can unearth historical geomarketing data as well as user behavior in real-time. This will allow marketers to be able to create personalized offers for the customer even before they leave their home.

For instance, based on the user’s tendencies and shopping patterns, the app will be able to forecast when the user will purchase a particular item. Data from these patterns is what will allow the business to tailor-make a discount for the user on the day they plan to go shopping for that particular product.

Statistics about Geomarketing

Looking for concrete reasons why you should incorporate geomarketing into your business? Consider the following statistics:

  • 30 percent of the world’s population is already using location-based marketing services.
  • 80 percent of consumers say that they would like to get location-based alerts from businesses.
  • 70 percent of consumers say that they are willing to share their location if they get something valuable in return.
  • Optimizing for local search has been shown to yield twice the click-through rate of regular advertising.
  • About 72 percent of consumers say that they usually follow through with a call to action’ if the physical location of the business is near them.
  • 60 percent of consumers say that they use their mobile devices to search for local information, and 40 percent do so while on the go.
  • People are twice as likely to visit a store after seeing an ad if you are utilizing geomarketing.

Final Thoughts

Geomarketing is an incredibly effective marketing strategy as it allows you to hyper-target consumers. This means that your marketing efforts are likely to bear fruits since you are targeting someone who likely needs what you are offering.

Additionally, the data you collect from geomarketing allows you better insight into your customers, and this helps you customize offers that are appealing to them. Also, geomarketing allows you various tools to help you with those efforts. However, geofencing has been found to be the most effective geomarketing tool.

Nonetheless, the others can be effective as well, depending on your situation and needs. Do you have a geomarketing strategy in place? Consider incorporating one and let us know how it goes.