The rise of geopublicity and hyperlocal marketing

In a world where consumers increasingly expect relevant and personalized advertising, geoadvertising plays an increasingly important role. With advances in technologies like AI and 5G, geoadvertising is evolving into more personalized and contextual advertising campaigns. Brands can now deliver relevant ads at the right time and place, leading to higher engagement and conversion. But what exactly is geoadvertising, and how can companies use it effectively? In this article, we delve deeper into this rapidly growing marketing trend.

1. What is geopublicity and why is it relevant?

The global rise in smartphone use has had a huge impact on location-based marketing in recent years. In 2020, there were 5.22 billion smartphone users worldwide, representing 66% of the global population ( trendrep.net ). This number rose to 4.3 billion in 2022, representing 54% of the global population ( notebookcheck.nl ). This trend is also clearly visible in the Netherlands; the percentage of smartphone ownership rose from 73% in 2014 to 95% in 2022 ( 1folders.nl ). This growth offers marketers unprecedented opportunities to reach consumers at the right time and in the right place with personalized ads.

Geotargeting refers to marketing strategies that use a user's location to deliver targeted ads and content. This is often done via GPS, Wi-Fi, Bluetooth beacons, and cellular networks. By combining these technologies with AI, brands can make their marketing messages highly relevant and time-sensitive.

Why is geopublicity becoming more and more popular?

• Increased smartphone usage : Consumers are constantly connected, making location-based marketing more effective.

• Enhanced AI and Data Analytics : AI can process massive amounts of location data and recognize patterns to optimize ads.

• 5G connectivity : Faster and more reliable mobile networks mean ads can be delivered in real time, without delay.

2. Hyperlocal Marketing: How Does It Work?

Hyperlocal marketing is a subset of geomarketing where companies target extremely specific geographic areas, such as a neighborhood, shopping center, or even a specific street. This type of marketing is often used by brick-and-mortar stores, restaurants, and local service providers.

How is hyperlocal marketing applied?

• Geo-fencing : Businesses can set virtual boundaries around a physical location. When a consumer crosses this boundary, they receive a relevant ad or notification on their smartphone.

• Beacon technology : Small Bluetooth devices in stores can send personalized offers to customers in the store.

• Google Local Campaigns : Google's hyperlocal ads allow businesses to show ads to users near their physical location.

3. Successful case studies

McDonald's and geo-fencing

McDonald's used geo-fencing to offer customers near a Burger King a coupon for their own restaurant. This led to an increased conversion rate and customers specifically coming to McDonald's instead of a competitor.

Starbucks and predictive AI

Starbucks uses AI to enhance hyperlocal marketing strategies. Based on weather, location, and previous purchases, the app can display personalized offers, such as a discount on an iced coffee on a hot day.

Nike's personalized push notifications

Nike combines AI and hyperlocal marketing to send users push notifications with special offers or events in their city. This not only increases engagement but also encourages physical store visits.

4. The future of geopublicity

With the rise of AI and 5G, geoadvertising will only become more sophisticated and effective. Thanks to the improved speed and connectivity of 5G, advertisements can be adapted almost instantly to the consumer's current situation. AI not only helps analyze location data but also predicts behavior, allowing companies to create even more relevant and personalized campaigns. Furthermore, it will become easier to combine location-based marketing with other technologies, such as voice search and wearables. Some expected developments include:

• Real-time ad adjustments : AI can instantly adjust ads based on environmental factors like weather or traffic. For example, a clothing store can automatically show ads for raincoats and umbrellas on a rainy day, while promoting beachwear on a sunny day. Another example is Uber, which can dynamically show ads during heavy traffic for alternative modes of transportation or discounted rides in specific areas. This ensures that ads are not only more relevant but also directly address the consumer's current needs.

• Augmented Reality (AR) and location-based experiences : Companies can use AR to engage consumers by offering interactive, location-based content. One example is IKEA Place, an app that allows customers to visualize furniture in their own homes using AR before making a purchase. Pokémon GO also uses location-based AR to draw players to specific physical locations, giving retailers the opportunity to generate foot traffic by offering in-game rewards. Fashion brands are also experimenting with AR, such as Gucci, which offers AR filters that allow customers to virtually try on shoes on their mobile devices.

• Privacy and Ethics : As geopublicity grows, companies must consider privacy regulations and be transparent about how they use location data. With the introduction of stricter regulations like the GDPR (General Data Protection Regulation) and the CCPA (California Consumer Privacy Act), companies must explicitly obtain consent before collecting and using location data.

In addition, consumers have increasing control over how their data is shared. Platforms like Apple have introduced features like App Tracking Transparency (ATT), which allows users to easily choose which apps are allowed to track their location data.

A good example of how companies can take a privacy-focused approach is Burger King's "Whopper Detour" campaign. This campaign used geo-fencing to offer consumers near a McDonald's a coupon for a Whopper, without intrusive tracking. This demonstrates that location-based marketing can be successful without compromising user privacy.

According to a Deloitte study (2023), 73% of consumers say they are more likely to trust a brand if it communicates transparently about its use of personal data. Companies that proactively address privacy issues and provide clear communication can therefore not only comply with regulations but also strengthen customer trust.

The impact of geopublicity on the future of marketing

Geoadvertising and hyperlocal marketing offer unprecedented opportunities for brands that want to respond to their target audience's needs at the right time and place. By combining AI, 5G, and smart data processing, companies can create more relevant and effective ads. Brands that use these technologies intelligently will not only increase their conversion rates but also build stronger relationships with their customers.