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Why business should incorporate location-based marketing and proximity marketing in their business strategy

17th Aug 2017Posted by Admin

It’s a dependable fact that location based marketing is bringing changes in the way customers deal with brands around them. As per a report by the Location Based Marketing Association, 75% of advertisers consider location based marketing an essential component in formulating their business strategy.

One of the essential reasons why location based marketing is gaining ground among the advertisers and customers, is that it removes the need to push unimportant promotions. This should not surprise, given that location based marketing has been turned out to be 20 times more successful in bringing returns than the usual banner advertisements.

This concept is very close to proximity marketing which has become pretty popular because of its powerful impact. Why people recall proximity advertising while discussing location based marketing is mainly because of the similarities they share despite the fact they are both very different strategies.

Let’s know how location based marketing varies from proximity marketing and the different location data can bring to your business, and how the insights can drive your business decisions and help you engage your audience better.

Why location-based information helps?

Location based insight enables organizations to take the best possible business decisions based on the strong foundation of critical audience information. These logical bits of knowledge can be drawn from a wide cluster of sources such as cell phones, wearables, Internet of Things (IoT) gadgets, Wi-Fi routers, beacons, etc.

Location based information helps businesses to draw a clear picture of customer’s behavioral pattern-- such as the most frequented shops, the time during the day they usually visit the location, to maximize conversion. It enables you to adjust your promoting technique by distinguishing the best channel, time and place to focus on your prospects, and in addition customize your messages.

What is location based marketing?

Location based marketing utilizes mobile marketing to target buyers inside a specific geographic region. The area of a purchaser is fixed by obtaining the longitude and latitude of their cell phone through GPS or other technology. This enables you to connect with the prospect by means of an application or on a site.

According to experts, businesses should target customers within 100 m circumference of their establishment, and to implement anything beyond 50m, geofencing and GPS are the best. Geo-fencing and geo-targeting are integral to how this strategy is implemented. Let’s understand how they work.


Geofencing is nothing but utilizing global GPS or RFID to define a geographic limit. Taking advantage of this virtual boundary, the businesses can set up prompts that send messages to the cell phones of the customers as soon as they enter or leave the defined area.


Customers receive content from the business using location based marketing in view of their geographic area. This is done by using a number of things like IP address or gadget ID within a particular city or zip code. GPS signals and geo-fencing and other meaningful technologies are also being implemented.

What is proximity marketing?

When the customer comes within a few meters of the business establishment, they are engaged with relevant content. Proximity marketing is a lot more personalized and timely and is targeted at the prospect utilizing the exact location of the customer. The strategy can also be used by businesses to boost conversion, when the customers are right within the store. Beacons and Wi-Fi are more commonly used for proximity marketing.

How they differ?

While location-based marketing is suitable for promoting products and services across a larger area, proximity marketing is fit for advertisements that are meant to target customers within 50m of the establishment or shop. Location-based marketing is not fit to address customers in a personalized manner. Proximity marketing resolves this problem by tracking the places customers spend maximum time and the products that attract their attention the most.

Wrapping up

Both location-based and proximity marketing are useful for the businesses, and a combination of both should be utilized to engage the customers to generate more leads and ensure maximum conversion.

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