Let us first discuss what is location-based mobile advertising?

Location-based mobile advertising revolves around the fact that wherever we go these days we always carry our smart phones with us. And most of us quite readily share our location data with the different apps that we use.

This creates an opportunity for the advertiser to personalise their communication to people based on their real-time location.

Using a person’s real time location, traced from their mobile device, advertisers can send different messages to people depending on the location where they are.

Suppose you’re walking through a lane somewhere in the Bangalore. While browsing on your phone and you see an ad for 50% off on pants at ZARA. Great. There isn’t a ZARA within a 50 kilometre of where you are. You will simply ignore it.

But imagine if you see the same message while walking in let’s say South Delhi, and imagine the ad is specific to the Select city walk mall. Suddenly you’re much more likely to be interested.

This is a very simple explanation, and there are handful of opportunities for advertisers to show much more creativity than that, but the basic principle will remain the same.

How is it effective?

Most of it is due to the changing attitudes of the users. Today, consumers are more relaxed about their data. But there are few other reasons why this channel is proving to be super effective.

Let’s take a glimpse on the detailed reasons:

1. Personalization

We all are aware of the fact that personalised messages to fetch far more engagement than that of their generic counterparts, and location-based mobile advertising is no different.

By personalising ads to users based on their real-time location, mobile advertising networks are more likely to show us something relevant.

There is simply no sense in making random offers to people in the pray that they might want exactly what you’ve got. Figuring out what is their interest in and then personalising your message is far more productive approach.

Location tracing data facilitates you to do that. You can make offers based on real-time location of the users.

2. Accurate Timing

One of the biggest strengths of location-based ads is that they are bang on time. As the location data is served in the real time, there are higher chances for brands to target people at that particular time.

3. It’s targeted

Gone are the days of generic display ads. Today, with the amount of data that are available for marketers and that too with an ease there is no reason not to target your messages.

According to a survey (IIMC, Delhi), 56% of people said that they block the ads from an advertiser as they are irrelevant for most of the time. If a mobile advertising company sends properly targeted advertisement, they are more likely to be relevant, reducing the possibility to be blocked or ignored.

Better ad targeting results to less time and money invested on spreading your message to people who literally couldn’t care less about it.