Location-Based Marketing: Perspectives, Insights, and Examples

Nowadays, when people are literally fed up with monotonous, repetitive content, marketing teams strive to implement unique, extraordinary strategies that appeal to each potential client separately and evoke certain feelings that leave no one indifferent. 


Location-tracking technologies appear to be the most productive option for company holders to take their businesses to a different level of success with the use of online analyzers, phone number tracker apps, and dedicated software alike. Location-based marketing is a new form of privilege available for the most advanced companies open to development and growth. 

A diverse marketing team of three people, two men and one woman, are engaged in a focused discussion while holding their phones in a bright, modern meeting room with natural light.

What Does Location-Based Marketing Mean?


In broad terms, location-based marketing (professionally mentioned as LBM) refers to a modern approach that presupposes the use of a consumer’s geographical location to deliver personalized, relevant marketing opportunities, messages, and services. Essentially, this method relies on the location data gathered by mobile devices, GPS trackers, and other location-monitoring tools to capture customers at the right time. 

Types of Location-Based Marketing


Though location-based marketing itself is a division of a larger category, it still comprises several strategies that universally utilize geographical data to reach a wider range of audiences effectively. Let us quickly take a look at the key types and understand their peculiarities, too.  


Geofencing: One may wonder, what is geofencing in terms of marketing? In general, it is known as the creation of virtual walls around particular areas with the aim of sending targeted advertisements or notifications when one enters or leaves these zones. Companies often use this strategy in order to attract local customers with special offers and personalized deals. 


Beacons: Another type of location-based marketing involves beacons, i.e., tiny Bluetooth devices physically placed in certain areas to provide tailored content, direct in-store navigation, and improve user experiences via neighboring devices of potential customers and clients.


Geo-Targeting: Moreover, some may find geo-targeting the most reliable option, for it shares information according to the location specifics and demography. This is widely used in online advertising to target local audiences with messages of particular content and meaning. 


Proximity Marketing: The goal of proximity marketing is to interact with customers in a particular setting, be it a casual event or a business meetup. This approach presupposes sending basic data or advertisements straight to customers' devices via Bluetooth, NFC, or Wi-Fi.


GPS-Based Marketing: In addition, there exists GPS-based marketing that detects a user's precise position by using satellite data for further prompt analysis. Outdoor activities, travel promotions, and services that depend on real-time location updates are the perfect fit for this kind of marketing, for sure.


Location-Based Social Media Advertising: What social media platforms can offer is definitely an opportunity to target potential clients simply based on their location through location-based advertising options. Companies may craft advertising campaigns on social media platforms like YouTube and Instagram to target people according to their recent or current location and personal preferences, too.

Advantages and Disadvantages of Location-Based Marketing


For the majority of companies, location-based marketing might bring both benefits and drawbacks that are to lead to certain consequences. This is why it is essential for business owners to weigh the pros and cons in advance to understand if this method suits their needs and expectations or not. 


On the one hand, companies rely on location-based strategies to raise engagement and relevance, increase overall satisfaction and loyalty, and acquire valuable information on the preferences and behavior of customers. Data, gather via such a channel, may completely change the game and set a path for further development. 


On the contrary, though, such an approach may raise privacy concerns, for some clients may not want to share their sensitive data with third parties at all. Besides, users who receive too many notifications may become tired of them and delete apps in the end. Lastly, inaccurate location data, which is not infrequent indeed, might result in irrelevant targeting. So, make sure you, as business owners, are capable of addressing these issues or preventing them from occurring in the first place. 

A modern store with sleek shelves and bright lighting serves as the backdrop for a smartphone prominently displayed in the foreground, featuring a location-tracking app on its screen.

Quick Examples of Successful Location-Based Marketing Campaigns


For one to practically evaluate the efficiency of location-based marketing, why not briefly examine the real examples of how this approach may perform its functions and attract clients in an elegant way?

Taco Bell's Taco Emoji Giveaway


In 2021, Taco Bell successfully integrated a taco emoji into a marketing campaign as a clever use of location-based marketing. In exchange for tweeting the taco emoji in specified geofenced zones, they offered users a free taco, which is quite risky for such a large company with a strong reputation. This campaign drove viral interaction on social media and increased foot traffic to their stores. 

Macy's Thanksgiving Day Parade


In order to interact with spectators, Macy's used beacon technology all along the course of the famous Macy's Thanksgiving Day Parade. Through the Macy's app, attendees could get exclusive offers and real-time notifications on their smartphones to draw them into local Macy's stores and enhance the live experience. The campaign demonstrated how location-based marketing can improve traditional experiences through effectively tying a large-scale event with digital participation.


Location-based marketing is indeed a great way to interact with customers, involve the public, and promote certain services and products with the use of joint forces. All in all, companies should decide if it is a beneficial tool for them to raise loyalty and engagement levels or if this is a useless opportunity that will not bear fruit at last.