Rise of hyperlocal advertising; Targeted commercials gaining ground

In the contemporary digital landscape, the pursuit of pinpointing the ideal audience has
evolved into a finely tuned endeavour. The advent of hyperlocal advertising has
revolutionised conventional marketing methodologies, granting businesses the capacity to
tailor their strategies to precise geographic regions with unparalleled accuracy. This
transformative paradigm underscores an escalating emphasis on interactivity, relevance,
and precision, fundamentally reshaping the terrain of product and service promotion.

At the forefront of this revolutionary trend stands hyperlocal advertising, presenting
businesses with the capability to engage hyper-specific audiences within delineated
geographic boundaries. Central to this approach is the pioneering utilisation of geofencing
technology, empowering companies to establish virtual geographic perimeters around
specific locales. This facilitates the activation of targeted advertising campaigns directed
towards users within these demarcated areas. For example, firms that take part in trade
exhibitions might utilise geofencing to send customised promotions or notifications to event
attendees or neighbouring areas, thereby increasing involvement and attracting more
people to visit their exhibition booths.

Geofencing provides a flexible marketing strategy that allows brands to specifically target
their customers in different situations – whether they are shopping at a competitor’s store,
browsing online or offline, or getting ready to use a service. Upon entering this virtual
border, the geofencing advertising campaign is activated, prompting the delivery of a
notification or mobile ad directly to the individual’s phone. This customised marketing
effectively advertises the nearby store, service, or product, optimising involvement and
motivating potential customers to act.

Being one of the biggest mobile markets in the world, hyper-local marketing fits in perfectly
with the deeply ingrained mobile-centric culture of India. According to statistics, India is
expected to have over 600 million smartphone users, growing at a rate of 10% yearly.
Ericsson’s Mobility Report for 2023, said that India has achieved a significant milestone in
global mobility by having the highest mobile data consumption per smartphone user in the
world.

One significant benefit of hyperlocal advertising is its effective use of real-time location
data, such as GPS or Bluetooth beacons, to provide personalised advertisements that are
tailored to the specific interests and needs of the target audience in the nearby area.
Imagine a busy urban area that contains a coffee shop. By using tailored advertising, the
business can attract potential customers by offering bespoke deals on their morning coffee.

This is done by utilising data-driven analysis of local foot traffic patterns to maximise
customer interaction and sales.

Focussed advertising seamlessly converges with the principle of drive-to-digital profiling,
wherein businesses amalgamate user location data with demographics, behaviours, and
preferences to formulate meticulous, targeted profiles. Leveraging expansive databases
housing millions of user profiles, companies can fine-tune their advertising strategies to
precisely target intended market segments. For instance, a luxury jewellery brand can
curate advertisements tailored to resonate with high-net-worth individuals shopping in the
proximity to its stores, weaving compelling narratives that strike a chord with prospective
clients in the vicinity.

The integration of geofencing into hyperlocal advertising further enhances its efficacy,
furnishing businesses with potent tools to target specific audiences within customisable
zones. Prominent platforms such as Google Ads or Facebook and Instagram provide intuitive
interfaces for configuring geofencing campaigns, facilitating the delineation of precise
boundaries and exclusion of designated locales as warranted. Notably, the success of
geofencing advertising hinges on the quality of data and a profound comprehension of
target customer behaviours and preferences.

To implement geofencing effectively using Google Ads, you have several options across
search results, display, and YouTube. By manually entering your desired location, Google
provides estimates of users within the geofenced area who meet specific criteria you define.
This customisation extends further with additional targeting options. For instance, if you're
promoting an auto show, you can leverage Google’s affinity audiences to target those
interested in vehicles, or employ keyword targeting to focus on specific car models or
manufacturers. The flexibility continues with choices between ‘Location’ or ‘Radius’ options, enabling you to hone in on a precise area using a mile or kilometre measurements.

Moreover, you can exclude certain locations from your targeting to refine your audience
further. Once your target location and radius are defined, you can add multiple exclusions to
create a tighter and more specific geofence. This strategy is applicable not only to Google
Ads but also to Facebook or Instagram advertising campaigns. Geofencing advertising
optimises standard advertising platforms without incurring extra costs, but success relies on
quality data regarding target customer trends and their relevance to the targeted areas.
Geofenced ads on platforms like Google and Facebook typically operate under models such
as Cost-Per-Mille (CPM), Cost-Per-Impression (CPM), or Cost-Per-Click (CPC), allowing you to
select the model aligning best with your advertising goals.

The rise of hyperlocal advertising, driven by techniques such as geofencing, signifies a
fundamental change in how businesses engage with consumers. Through the utilisation of
real-time location data and advanced profiling techniques, businesses may enhance the
effectiveness of their advertising efforts, leading to increased engagement, conversions, and
ultimately, business growth. As businesses increasingly utilise digital advertising, there will
be a significant increase in demand for targeted ads that are customised for certain geotagged regions. This will solidify hyperlocal advertising as a fundamental component of modern marketing plans that are designed to cater for specific audience needs.