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From Geo-location to Micro-location

Location awareness technology is becoming more advanced every day, improving companies' abilities to target specific customers with location-based marketing. This is especially effective for all industries including entertainment, retail, healthcare and hospitality. The most effective location-based marketing not only benefits the brand but also the consumer, as they will receive advertisements more relevant to them. To fully maximise marketing efficiency, geo-location is no longer sufficient. Instead, micro-location is now becoming a more powerful tool. When approximating your geo-location, GPS is fairly accurate, but it is much less effective in cities and indoors. 94% of purchases are made within stores, so to be fully effective, location-based marketing must be capable of tracking consumers inside them. Micro-location's advanced tracking technology can identify your indoor position within only a few feet. As such, the possibilities for consumer engagement are endless.

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Micro-location Strategies

With micro-location marketing, it is essential to separate customers into smaller groups. From there, the marketing itself will be targeted to individual customers. This, of course, necessitates that companies have access to total information about their consumers. In general, micro-location marketing strategies are focused on a local market or a targeted individual market. This requires having a defined observation on the size and style of that particular market. Whether their customers are in Dubai or elsewhere in the world, by being able to track their customers accurately and easily, E-Commerce websites can prepare their advertisements accordingly.

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Location Marketing Technology

With micro-location marketing still in its infancy, its technology is naturally still evolving and developing. Currently, no specific technology is universally implemented. Instead, some marketers utilise several different technologies in their micro-location marketing. Wi-Fi is often available as a service to consumers. To pinpoint someone's location, it needs at least three different Wi-Fi hotspots and also checks a user's signal strength to further increase accuracy. Mobile application providers have been working with companies such as Aruba, Motorola and Cisco to use proximity technology in their in-venue marketing solutions. A more high-tech technology compared to Wi-Fi is small wireless sensors called beacons. Using Bluetooth Low Energy, they connect with mobile devices to target consumers with advertisements, offers and messages. Easy to install and relatively inexpensive, they are becoming increasingly popular in the United Arab Emirates and beyond. Finally, social media is another useful tool in proximity marketing. Companies can track their customers through sites like Facebook and Twitter to further monitor consumer behaviour.

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Traffic's Useful Applications of Location Marketing

Being a high performing digital agency, here at Traffic we are fully aware of all useful applications of location marketing. No matter where you are in the Middle East, there are numerous opportunities for this exciting new technology. Because of the connectivity between mobile and micro-location targeting, brands can target consumers at the most crucial moments, dramatically increasing their chances of spending. Personalised advertisements also benefit the consumer, saving them time and money and also helping them to make more well-informed purchases. By knowing exactly where their customers are located, brands can tailor their suggestions depending on what that customer may be looking at.

The applications of this are enormous. Consumers can be steered to more profitable areas or encouraged to consider perishable goods. For example, if a restaurant is struggling to attract diners on a particular night, they can send discounts to passing consumers, encouraging them to fill their empty spaces. In this way, they can create offers only when they need them. Alternatively, if a concert at a music venue is due to shortly start and they still have a number of unsold tickets, they can send messages to all local consumers, encouraging them to buy their tickets soon.

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The Future of Location-based Marketing

Currently, location-based data is only used by 23% of marketers in their mobile campaigns. Nevertheless, its popularity is increasing with proximity-based marketing spending estimated to reach $2.3 billion worldwide within 2016. With all the opportunities that micro-location targeting provides, there are countless applications for this exciting technology within the UEA and beyond. Benefiting both the marketer and the consumer, real-time marketing is the inevitable and effective next step. As the technology further improves and becomes more standardised, so too will its accuracy and efficiency.

Here at Traffic, we are excited to be involved with the capabilities and possibilities of location marketing. Focusing upon contextual interactive engagement, we offer micro-location and proximity based mapping, messaging and triggering. If you are interested in any of these services, don't hesitate to contact us at +971 (0)4 454 2230

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