By Wayne Reuvers, Chief Strategy Officer LiveRetail

Since time immemorial the all-important first rule of retail has been location, location, location, but the rulebook is being rewritten for our digital world. In today’s era of hyper-targeted, ultra-localized digital advertising, the new rule is location, location, branding.

With the advent of social media, e-commerce, and other digital marketing channels, brands and marketers have been able to reach global audiences on a massive scale like never before. This shift has been transformative for the digital advertising landscape, forever changing the way brands promote their goods and services. But as digital marketing evolves, brands are channeling the power of their worldwide reach to cater to highly targeted, highly specific local markets.

The result is hyper-targeted local advertising, or hyperlocal advertising. The idea being that by targeting extremely specific geographic locations (often as granular as a certain town, or even a few city blocks), brands can more directly communicate with the audiences who are most in need of their products or services. It’s also a great way to make more meaningful connections with customers. By using familiar local references or imagery in their marketing efforts, even major national brands can seamlessly integrate individual locations into their local communities.

There are many compelling reasons for brands to incorporate hyperlocal marketing into their current marketing strategy. Let’s dig into some of the biggest benefits.

Precise Consumer Demographic Geotargeting

Geotargeting gives brands the ability to target customers not only by location, but by specific factors like age, shopping behaviors, interests, and more. This allows businesses to create highly personalized ad content that is more likely to resonate with local audiences. Consumers tend to respond best to marketing when they feel it’s speaking directly to them, and geo targeting allows brands to do just that.

Low Cost

We’ve already begun seeing major national retailers like Kroger moving away from costly printed circular materials in favor of more targeted digital outreach, and with good reason. The goal of mass marketing used to be reaching as broad an audience as possible, such as mass-printed or mass-mailed paper circulars. But in the digital era, that “spray and pray” approach is costlier and less effective than hyper targeted digital marketing.

Increased Consumer Foot Traffic

Getting customers in the door is the name of the game for any retailer. But with so much competition from online-only brands, customers don’t necessarily need to leave their homes anymore to buy the goods and services they need. When marketers leverage their knowledge of the city or town in which stores are located, it creates a spark of familiarity with customers. They might even drive by a retail location in their hometown every day on their way to work and not think twice about it. When marketing efforts get authentically local, brands can put themselves more firmly in customers’ minds, making them more likely to pop in for a purchase.

Flexible 

One of the great things about hyperlocal digital advertising is it gives brands the ability to completely shift strategies based on what works and what doesn’t. Printed or conventionally broadcast marketing materials are very final. Once they’re put out into the world, they’re going to do as well as they’re going to do, with little to no opportunity to change midstream. Brands that engage in hyperlocal marketing have a plethora of data at their disposal, allowing them to fine-tune their messaging, or their audience in near real-time as necessary.

Local Customer Loyalty Building

It goes without saying that retail businesses perish or thrive based on how much customer loyalty they can cultivate. This is especially true in local markets, where competition from both e-commerce brands and brick-and-mortars can be fierce. The brands that most adeptly utilize hyperlocal advertising know how to strike familiar tones with their target audience. When brands can make customers feel seen and catered to, they are more likely to take their business there.

Leverage Brand Awareness to Target Customers

How familiar consumers are with a particular brand or service can be a powerful tool for staying on top of customers’ minds. Think of products like Kleenex or Q-Tips, which have such widespread recognition they have become synonymous with their respective products. One way brands can foster awareness through digital marketing is by demonstrating their philosophy and their core values. Companies already know what customers love about their product or service; the key is translating that message in a way that resonates with your target audiences.

Easy to Replicate and Tweak Messaging

A major advantage of hyperlocal digital advertising is that it’s easy to iterate without having to reinvent the wheel. When a campaign finds success in a local market, it’s easy to reproduce the elements that hit their target across a range of other geographies. Of course, every city is different, so in many cases the core messaging can remain in place with some tweaks and adjustments designed for specific regions.

Ability to Capitalize on Topics of Interest for a Local Market

A big part of hyperlocal marketing is for brands to integrate themselves in their local communities. That means staying abreast of the comings and goings of the town in which their stores are located. Does the community have a major annual festival attended by everybody in town? Is the local sports team on pace for a championship season? Using these familiar touchstones in marketing efforts will create more meaningful relationships with local shoppers and demonstrate a brand’s connection with the community it serves.

Conclusion

Hyperlocal digital advertising is part art and part science. Doing it correctly requires brands to be invested in their local communities in an authentic way. (Remember: customers can spot disingenuous attempts to “seem local” from about a mile away). The days of spending as much money as possible to reach as wide an audience as possible are drawing to a close. Today, retailers are getting hyperlocal with their digital marketing efforts, reaching customers as individuals, rather than a faceless monolith. 

About LiveRetail

LiveRetail is a software platform that enables multi-location brands to create digital assets at scale that are on-brand and personalized for each location. Get more out of your local marketing reach and budget with ready-to-run ads for brands, franchises, and MDF. For more info visit https://liveretail.com/

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