The Ultimate Guide of Location-Based Marketing and Its Advantages

The Ultimate Guide of Location-Based Marketing and Its Advantages

The Ultimate Guide of Location-Based Marketing and Its Advantages

Published On - 03/01/2022

Today organizations are in search of marketing strategies to build effective communication with their customers. The increased usage of smartphones has made location one of the biggest marketing factors. You can now stay connected with your consumers on a personal level utilizing location-based marketing. Online marketing agency Malaysia uses this strategy effectively to generate more sales and attract more customers.

Understanding location-based marketing is important for its effective use. Don't know much about this marketing strategy? Let's discuss location-based marketing in detail so you can have a better idea about how it is beneficial for your business.

What is Location-Based Marketing?

Location-based marketing also known as geo-targeted marketing, or proximity-based marketing is defined as the use of users' mobile device location to show them the relevant content located in their geographical region. Marketers use various techniques such as GPS, or IP address for location-based marketing.

The purpose of location-based marketing is to attract users by sending them automated messages or ads. Note that before sending automated messages to customers you must first ask them permission to access their current location otherwise, they will consider you untrustworthy.

Example of Location-Based Marketing

For example, if somebody searches 'real estate office near me' then the company will send them notifications every time they are nearby to encourage them to do business with them. It is because the company has pleased do you fences in place for targeting the audience located near them. Doing so will increase the conversion rate of the company by three times.

Types of Location-Based Marketing

Location-based marketing is of the following types let's discuss each of them in detail to have a better understanding.


Setting a virtual fence by using various technologies such as GPS, RFID, or IP address, is called geofencing. The fencing is done around a specific location and its purpose is to attract specific users to that location. For instance, if the owner of a kid’s clothing store uses geofencing then the users will automatically receive notifications every time they are around the shop.

One disadvantage of geofencing is that it doesn't consider users' demographics and send notifications to everyone. Such irrelevant notifications might affect your engagement. So, to avoid such inconvenience, geotargeting is a better option for you.


Unlike geofencing, geo-targeting allows you to send alerts to your audience based on their interests, demographics, purchases, etc. It allows you to do tailored marketing and target only the audience that fits your criteria. Sending push notifications to girls about the sale of makeup items is an example of Geo-targeting.

If you provide a personalized experience to the users and anticipate their needs, you will ultimately increase your sales. Research showed that Geo-targeting increased conversion rates up to 75%.

Mobile Targeting

Mobile targeting refers to reaching out to your audience on their smartphones or other devices. You can send notifications or ads to the people on their mobile at any time. Through mobile targeting, you can notify people about discounts and other offers efficiently. Moreover, if you send notifications based on their shopping history and needs, you are more likely to gain their attention.

How Does Location-Based Marketing Work?

Location-based marketing is used by businesses to cater to your needs and to notify you about their services or relevant promotions. The main purpose of this strategy is to grab users' attention and convert them into customers. Let's say if you have a mobile app of your favorite brand on your smartphone and you have given them access to use your current location. Then they will send you notifications about various promotions, discounts, or events relevant to your interests, or based on your previous purchase history.

The Importance of Location-Based Marketing

No matter what type of business you are running, location-based marketing can prove to be a game-changer for your business. It is the best SEO Malaysia strategy that will help you in stealing your rivals' customers. It gives a new direction to your advertising campaigns and attracts new customers leading to an increase in brand awareness and revenue. From building a strong customer relationship to increasing engagement, you can ensure everything just with the right strategy.

Why is Location-Based Marketing So Attractive to Marketers?

Marketing strategies today focus on reaching the audience through mobile because the marketers know that people spend most of their time on their smartphones and devices. Taking advantage of mobile phones marketers came up with a location-based strategy to reach the audience anywhere and anytime through location-based strategy, the relevant information is provided to the customers at the right time which attracts them to make a purchase.

According to a study, there is a 20% more increase in sales of companies who rely on location-based marketing. The data drive in using location is used for the following purposes:

  • Increasing engagement and targeting
  • Tracking and insights
  • Improving campaign strategy
  • Better user experience
  • Personalization and audience segmentation

Increase Traffic for Your Business

With an effective location-based marketing strategy you can increase organic traffic for your business. This local branding helps you in retaining old customers and attracting new ones.

Delivering More Relevant Ads

Location-based marketing allows you to send relevant ads to your customers which will increase their engagement with their brand.

Drive Consumers Away From the Competition

Location-based marketing allows you to stay ahead of your competitors as it focuses on attracting more customers to your brand. When you reach out to your audience they will ultimately notice your brand and choose you over your competitors.

Create a Better User Experience

When you constantly stay in touch with your customers through your mobile app and provide the best services, it will create a better user experience and generate brand loyalty.

Advantages of Location-Based Marketing

Want to know what advantages does location-based marketing have for your business? Let's take a look at the advantages that will convince you to invest in this SEO strategy.

Location Targeting

When you try to reach your target audience based on your graphical location, it will increase your sales 10 times. This strategy will attract customers efficiently.

Data Offerings

For relevant and personalized marketing, understanding the customers' shopping behavior is crucial. This can be done by analyzing the results of the ad campaign. When you build your relations with customers on a deeper level they will ultimately pressure you over others.

Enhanced Targeting

Enhance targeting is the key to increasing conversion rate and ensuring successful marketing. This allows you to target the audience on the basis of time, shopping patterns, location, and much more.

With such precision in targeting, you can build an improved connection with your audience.

Cost Per Visit Performance Model

Cost per visit performance advertising means that you will only pay when customers pay a visit to your store and this will increase your return on ads.


Are you not generating sufficient profit due to the lack of customers? Don't worry anymore as with location-based marketing, you can target your audience precisely and flourish your business. It allows you to engage your customers depending upon their geographic and demographic locations.

BThrust MY is an Online marketing agency Malaysia, that will help you in enhancing your brand awareness and customer base. Our marketers work on boosting your relationship with customers by sending customized and relevant ads for your business. We ensure to convert your online traffic into sales and boost your search engine rankings to increase your visibility so people don't miss any chance to visit your website.

What are you waiting for? Get in touch with us today so we can work together to increase your conversions and revenue by using the appropriate strategy!