Location-based advertising: How can it increase store visits?

Location-based advertising: How can it increase store visits?

Businesses have at their disposal many marketing strategies, one of which is Location-based Advertising. By using this strategy, businesses can target consumers in specific areas with greater accuracy, which can lead to an increase in the likelihood of them visiting our store or branch. This article aims to provide a comprehensive overview of location-based marketing, including its definition, benefits, and how its strategies can help increase store visits.


What is Location-based Advertising?

Location-based advertising is a marketing technique that involves businesses sending targeted alerts or content to consumers when they are close to a store or other location, utilizing location data from their smartphones.

By utilizing this method, businesses can narrow down their target audience based on specific criteria such as age, gender, or proximity to their location.

The precision of location-based ads can vary depending on the method used, which allows for customization based on the needs of the company.

Location-based marketing can also boost visits and conversions by displaying ads that align with the needs and interests of consumers in specific areas.

Types of Location-based Advertising

After learning the definitions of location-based advertising, we will talk about its types. Here are important types of local-based ads that you should know about, including:


Geofencing is a technique that uses GPS (Global Positioning System) or RFID (Radio Frequency Identification) to create a virtual boundary around a specific area. When consumers are within this boundary, they will receive offer messages, content, or marketing on their mobile devices.

Geofencing allows businesses to target consumers within predefined boundaries for ad campaigns. It also provides real-time location data that businesses can use to leverage consumer behavior, such as impulsive buying.


Another type of location-based advertising is geotargeting, which sends information to consumers based on their residential or workplace locations. The difference between geotargeting and geofencing is that consumers don’t need to go to a specific location to receive offers or ads, as the information is sent via their IP address.

By using IP addresses, devices in specific locations can be directly targeted with relevant online ads. This service doesn’t require the use of cookies to reach the audience but matches the physical address of individuals or businesses we want to reach with their IP address.

Geotargeting enhances consumer experience by creating ads tailored to specific regions or workplaces. This helps businesses understand the habits and interests of their audience and match them with products or services in places they frequently visit.


Beaconing involves the use of small wireless devices that use low-energy Bluetooth or Wi-Fi to obtain location data from nearby smartphones. Once connected to a device, these beacons send messages via email, notifications, or other apps.

Beacons can be placed in strategic locations such as entryways, shelves, or cash registers inside or outside stores. Businesses can also set up beacons to cover areas around homes or workplaces.

Compared to geofencing, beaconing is better at targeting specific audiences when used at events or specific locations. Beaconing allows businesses to send personalized messages to consumers based on their current activities.


Geoconquesting is a location-based advertising strategy that enables businesses to send promotions to consumers who previously visited competitors’ physical stores, websites, or apps, based on available data.

This strategy helps businesses attract attention and gain advantage from consumers who typically shop at competitors.

Businesses can combine geoconquesting and geofencing to reach consumers when they are at or near a competitor’s location.

This way, ads or promotions sent can persuade potential consumers to come to our business instead of the competitor’s.

Mobile Targeting

The last type of location-based marketing is mobile targeting. This strategy involves delivering promotional ads through smartphones and messages.

With this approach, businesses can leverage mobile data such as location and social media connections to better understand the target audience and deliver relevant messages to consumers.

For example, restaurants use mobile targeting to reach users in their vicinity and send promotions or special offers via text or SMS.

Benefits of Location-based Advertising

Businesses that adopt location-based ads can benefit from this marketing strategy in many ways, regardless of the type of ad used to increase their profits.

Understanding the customer better

To make user experiences more personal, location-based marketing provides businesses with valuable data for understanding their customers. This includes;

  • Demographic data,: this data reveals personal information such as age, gender, income, marital status, and more.
  • Consumer behavior: this data shows businesses what their customers are interested in and how they make purchases. 
  • User engagement: businesses can track user engagement to determine how closely connected a specific consumer is with the company.

Increasing the number of visitors

Location-based ads are highly effective in increasing visits to stores or branches. By sending messages to consumers in proximity to the store location, businesses can increase the likelihood of them coming to their store. 

This strategy is not only useful for physical stores, but it can also increase visits to online businesses by identifying consumers within the delivery range or service areas of the business.

Make ads more relevant

Businesses can use location-based marketing strategies to ensure that ads or content seen by consumers are relevant to their interests and needs, according to the region or area they are in. 

For instance, a clothing store will show ads for jackets or thick clothing more frequently in areas with cold weather compared to hot areas. This way, consumers are more likely to see ads that match their needs.

Promote Your Business in the Best Places with LOKASI Intelligence

One common location-based advertising method used by businesses is called OOH, or out-of-home advertising. This approach involves promoting products or services on billboards, stations, or other strategic locations.

Businesses can take advantage of the LOKASI Intelligence platform to identify the best locations for placing ads and reaching a large audience.

LOKASI is a platform that leverages location intelligence to perform geospatial analysis. This tool helps businesses identify the most optimal spots for displaying OOH ads.

Additionally, LOKASI offers consumer databases that include demographic data, mobile data, population density, socio-economic status, and more. All of this information can be used to improve the customer experience.

Learn more about how LOKASI Intelligence can help businesses by contacting email: sales@bvarta.com or WhatsApp: 087779077750.


What is Location-based advertising?

Location-based advertising is a way for businesses to send relevant messages or information to consumers when they are near a store or office, using location data from consumers’ smartphones.

What are the types of Location-based advertising?

Types of location-based advertising include geofencing, geotargeting, beaconing, geoconquesting, and mobile targeting.

What are the benefits of location-based advertising?

The benefits of location-based advertising include a better understanding of customers, increasing visits, enhancing ad relevance, and more.

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