Misconceptions about proximity and location marketing

Proximity and location marketing allow marketers to target a consumer with timely and relevant information. For the consumer, that means they are more likely to come across ads they are interested in and avoid overgeneralized marketing strategies.

Due to the win-win appeal of these types of marketing, they are growing in popularity. Still a relatively new concept however, there are many common misconceptions surrounding proximity and location marketing. This article is out to set those misconceptions straight.

MISCONCEPTIONS

1. Proximity and location data are one and the same.                                                            

Reality: Proximity data is small-scale marketing while location-based marketing is done on a large-scale basis.

A closer look: Location-based marketing is used to target consumers within a particular, but broad, geographic area. The location of a consumer is determined through the longitude and latitude of their mobile device through GPS or cell tower triangulation. Marketers can then use this information to respond online or via an app.

This can be particularly beneficial when businesses are looking to reach out and send, say, an ad, to people who are within a specific radius of their location (up to 30 miles).

Proximity marketing allows businesses to use the accurate location of a consumer (down to a few yards) to engage consumers with relevant notifications. That goes beyond the normal reach of basic GPS and determines the location of a consumer’s mobile device on a department-inside-a-store level.

Marketers can track and respond to consumer behavior in ways that location marketing can’t. For example, they can see which department consumers spent the most time in inside a building. Through proximity marketing, consumers can receive relevant information about a product as they are literally passing that product in the store.

2. Proximity and location marketing are only for retailers.

Reality: Retailers are benefiting from this new form of marketing, but they aren’t the only ones.

A closer look: Car shops, restaurants, clothes stores and many more forms of retail are using geo-marketing strategies. In a digital world, they are helping to continue bringing people in their stores and increase sales. Retailers aren’t the only ones benefiting however. Even businesses without a 'bricks and mortar' physical presence are finding creative ways to use location-based marketing. The United States History Channel, for example, uses location-based marketing to providing visitor information as people approach different historical sites. The possibilities are far reaching.

3. All data is treated equally.

Reality: Data collection methods vary, as well as data accuracy.

A closer look: Location data can vary drastically based on the source. The quality goes up the closer the marketer gets to pulling the location from the direct source. Meaning, location data straight from a consumer’s device is the goal. This keeps things accurate.

GPS data accuracy can vary as well. As customers move indoors, or weather gets bad, accuracy may suffer.

4. Proximity and location services are privacy infringements.

Reality: Marketers have limits and consumers have choice.

A closer look: There are laws surrounding location services and marketers have limits in what they are allowed to do with their location data. They can’t share the information to third parties without the consent of the consumer. Terms of service also usually limit the time that a consumer’s location history is stored, and provides the option to delete location records whenever they want.

Consumers feel a sense of security as long as their option to opt-in, and change their minds about what location data they share, is available and obvious.

5. Businesses need to convince customers that location is good for marketing.

Reality: What consumers need is less education-based convincing and more positive experiences.

A closer look: As previously mentioned, there are laws surrounding location privacy and what businesses can do with that information. It was previously assumed that consumers needed to be aware of those laws in order to feel comfortable with proximity and location marketing. Turns out, that’s not really the case.

Users opt-in to share data in exchange for a better user experience. If geo-services are just that--a service--then consumers are likely to share their information willingly. It’s all about weighing the perceived risks against the benefits.

Snapchat, for example, offers “geofilters” as a key feature of using the app. Because that element of the app is so fun and engaging, users are becoming more comfortable with the idea of sharing location. The social benefits of sharing their location naturally outweigh any misguided fears. The concept is the same for marketing strategies.

So, were any of your own misconceptions mentioned here? Surprised at what you thought you knew? The bottom line is that proximity and location marketing are amazing tools for small businesses when you know how to use them properly. Proper use means proper education. And part of that: debunking misconceptions.

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