Hyperlocal targeting, also known as geofencing, is a powerful way for brands to target individuals in a precise location. Adcombi now offers this ‘bull’s eye’ technology of local advertising. Being more accurate than other targeting technologies, it allows you to display the right message at the right time and place. Hyperlocal targeting is one of the best ways to advertise locally. Here’s how it works.

What is hyperlocal targeting?

Geotargeting in general is one of the most powerful advertising tools for brands to engage with local audiences that are near their businesses. The most accurate type of geotargeting is hyperlocal targeting, or geofencing. By building a virtual “fence” around a location, geofencing lets advertisers target a very specific group of potential consumers within that fence. It could be customers near your local store, fans at a football stadium, concert visitors at an arena, or even just travelers on the subway. When a potential customer enters this area, your ads are shown on their mobile phone or tablet in apps.

How does it work?

Hyperlocal targeting uses GPS data from smartphones to geographically target individuals with ads that match the context of their physical location. Usually a geofence around a city, area or local business spans up to a kilometer. Hyperlocal targeting is accurate up to 10 to 100 meters. This is much more accurate than targeting based on postal codes, where the location of the consumer is estimated on the basis of the IP-addresses, which can deviate significantly in some cases.

Hyperlocal targeting and GDPR

To put up a geofence you need permission to use the customer’s location. If you advertise in-app, the apps you advertise in usually provide this authorization. In the Netherlands popular free apps like Nu.nl, Telegraaf, Buienradar, and several game apps have the user’s permission to share their location with third parties when they are installed. These apps constantly share the user’s location, which makes the location of individuals you are targeting accurate, up to 10 meters.

Why hyperlocal targeting?

People check their phones around 85 times a day on average. Millennials nearly double this and spend about five hours a day on their devices. Several studies also prove that the first point of sale is moving towards mobile. With geofencing, you can target your audience on their mobile device when they are in the right place, at the right time. It enables you to target individuals who are on the move. Targeting those individuals with specific messages for every local store also enhances the relevance of your advertisement.

How to get the most out of hyperlocal targeting?

Many businesses use hyperlocal targeting to simply send a special offer to customers when they walk or drive near a business’s location. But there are plenty of opportunities for creativity beyond that. The possibilities are infinite.

A few examples:

  • Stores with multiple physical locations can geofence around each location and target their potential customers with local store offers in-apps. For instance, a retailer can offer their shoes on sale to a customer who walks nearby their store.
  • Geofencing a mall to attract your customers to your store by sending them your add with a special deal.
  • Geofence a university area if you want to target students.
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