openPR Logo

Location-Based Marketing definition

Location-Based Marketing (© /

Location-Based Marketing (© /

As we move into the future, processes like customization, including location-based marketing, become more important than ever. That’s because customers expect their experience to be customized now. In this article, we will be looking at the thinking behind location-based marketing, the effectiveness of the strategy and where things may go in the future. When used correctly, location-based marketing can increase your conversions by several hundred percent.

What is Location-Based Marketing?

Location-based marketing is the process of customizing a marketing message based upon the context of the user receiving it. The advertiser typically looks at audience data relating to that location and then customizes their marketing efforts to be more visible or more appealing to the people in that area. The goal is to bring together physical and digital data and context in order to provide actionable content that is intended to be used immediately. When location-based marketing is used properly, it can multiply response times and improve not only conversion rates, but also actions related to conversion such as signing up for an email list or accepting push notifications.

How Location-Based Marketing Works

Location-based marketing messages are usually delivered through text messages on a user’s mobile device. There are couple of reasons why this is the case. First, people tend to check messages that they get on their mobile device right away and therefore can take action when they receive the message. Second, if someone is checking their mobile device and they are already out of the house, there is a much greater chance they will take advantage of some kind of incentive or discount that they receive as an alert on their device.

Location-based marketing works by first having the user download a mobile app, and then accepting the apps request to use their current location. The primary technology driving the alerts that they get is known as geofencing. Geofencing can allow advertisers to send alerts automatically whenever a user is within a certain predefined geographic boundary.

Why it isn’t Proximity Marketing

A lot of people use the term location-based marketing interchangeably with proximity marketing. While it is true that both of these marketing strategies use a customer’s location to determine if an alert is sent, the difference between these two is how the location is determined. Proximity marketing usually uses beacon technology and is able to determine location much more accurately.

LBM Privacy Concerns

The aforementioned method of determining someone’s location with proximity marketing is a good segue into our next section, which deals with privacy concerns around proximity marketing and location-based marketing. Many customers are understandably skeptical when it comes to trusting that a business will use their location responsibly after they have opted in to marketing messages. That’s why many businesses that use location-based marketing are allowing the user to set the parameters of the marketing campaign. The customer can decide not only whether or not they want push notifications in the first place, but also where messages are sent – with email being an alternative to SMS – as well as how frequently they will be getting marketing messages.

Location-Based Marketing Strategies

There are several ways that a company can use location-based marketing. Usually, how this tool will be used depends upon the type of business you have. For example, a retail store located in downtown will use LBM differently than a company that either has locations scattered around the state, or provide some kind of service that comes to you such as plumbing or security system installation.

Some of the strategies that businesses are using include hosting a local event and then getting attendees at that event to subscribe to the push notifications that will later become the basis of their local marketing strategy. You can also use location tags on social media profiles and pictures, hashtags that are designed and promoted to a local community, optimizing your website for local keywords and using geo-targeting whenever you run an ad campaign on Google, Facebook or other advertising options that incorporate geo-targeting.


Location-based marketing can be a powerful tool that will allow you to connect better with your customers and get a bigger response from your marketing campaigns as long as you use it responsibly.

Press releases

Location Based Marketing Services Market - Proliferation of Smartphones Drives Market
The global location based marketing services market, which is in a nascent stage, is primed grow at a cracking pace in the years ahead. Sensing an opportunity in it, many players – big and small – are entering the fray. This is serving to heat up competition and will likely
Global Location Based Marketing Software Market Competitive landscape analysis and major regional development Status 2025
In 2018, the global Location Based Marketing Software market size was xx million US$ and it is expected to reach xx million US$ by the end of 2025, with a CAGR of xx% during 2019-2025. Global Location Based Marketing Software Market Potential Growth, Share, Production, Demand and Analysis of Key Players
Global Location Based Marketing Services Market to 2025| Google, Groupon, Groundtruth, Placecast, PlaceIQ, Scanbuy, Shopkick, Telenity
Albany, NY, 26th October : Recent research and the current scenario as well as future market potential of "Location Based Marketing Services Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2017 - 2025" globally. Global Location Based Marketing Services Market: Overview The location based marketing services market report provides
Global Location Based Marketing Services Market SizeStatus and Forecast 2025 : Google, PlaceIQ, Scanbuy, Telenity
Qyresearchreports include new market research report "Global Location Based Marketing Services Market SizeStatus and Forecast 2025" to its huge collection of research reports. A report on the global market for Location Based Marketing Services is a valuable repository of various crucial facts and figures pertaining to the market. The information was
Global Location Based Marketing Services Market 2017- 2022: Google, Groupon, Groundtruth, Placecast
HTF MI recently added a new research study in its database that highlights the in-depth market analysis with future prospects of Location Based market. The study covers significant data which makes the research document a handy resource for marketing managers, analysts, industry executives, consultants, sales and product managers,