10 Ways IP Geolocation Is Totally Changing Marketing

Technology has always been a driving force in the evolution of marketing. From direct mails to yellow pages to cold calling, marketing has transformed itself to bank on the fact that we spend more time than ever tinkering with our mobile devices. In fact, the average person carries one or two gadgets wherever they go. With an IP address assigned to each device, it is easy for marketers to capitalize on IP geolocation data.

For those who are not aware, geolocation uses a device’s unique information, such as its IP address, to determine its user’s current geographical location. IP geolocation is playing an essential role in the recent evolution of marketing, and here are 10 specific ways it is doing so.

1. Content Is More Personalized

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Consumers prefer personalized marketing content, and that makes perfect sense. After all, receiving irrelevant messages would only cause them to unsubscribe or even swear off a brand. With geolocation, marketers can offer location-based content that would be relevant to their target audiences. They can use the consumer’s language, present content centered around local events and news, create location-based promotions, and use local currency for product prices.

Done right, content personalization with the help of IP geolocation can help decrease email bounce rates, increase web page dwell time, and encourage website visitors to return.

2. PPC Advertising Is More Cost-Effective

Pay-per-click (PPC) is an online advertising model where advertisers pay only when users click their ads. It is an effective way to drive traffic to a company’s website. However, it could also result in wasted money when users who are not likely to convert click a PPC ad.

To save money, advertisers can exclude specific locations, particularly areas where their products and services are not available. IP geolocation data can be used to implement this strategy. PPC campaigns can also be segmented by location and analyzed to allocate more budget to best-performing areas.

3. Geo-Exclusion Help Marketing Teams Comply with Regulations

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Excluding specific locations in marketing campaigns does not only help companies avoid wasted money on PPC advertising. It also helps them comply with regulations, such as data privacy laws in specific countries or regions.

Remember that in January 2019, Google was fined €50 million for violating the General Data Protection Regulation (GDPR). One of its violations was failing to obtain valid consent to process user data for ad personalization. The penalty set off a warning for marketers to comply with data privacy laws, primarily when catering to consumers within the European Union (EU).

With IP geolocation, companies can exclude areas where aggressive marketing campaigns could be considered violations of data privacy laws. You can learn more about this on ipify.org.

4. More Aggressive Mobile Marketing

The average American adult spends about three hours on his or her mobile phone daily, making mobile marketing a lucrative platform. But geolocation makes it more advanced. Marketers can send out coupons, discounts, and other incentives when a target’s mobile IP geolocation data shows that he or she is within a specific location. Location-based mobile marketing is typically used by retailers with brick-and-mortar stores, allowing them to be present during the crucial stages of the buyer’s journey.

5. Instant Check-Ins Have Become Possible

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Facebook and Foursquare introduced location check-ins about a decade ago. And while millions of people still use the feature, some remain reluctant. The hesitation could be because they need to perform additional steps to complete the check-in process.

On Facebook, for instance, users have to do the following:

Click “Create Post.”
Select “Check-in.”
Search for the name of the location.
Click “Post.”

The relatively long process discourages most users from using the check-in feature. But with IP geolocation, marketers can offer instant check-ins. By doing so, they can bank on the publicity and gain insights from user ratings and feedback.

6. Social Media Marketing Audience Can Be More Defined

Social media marketing is one of the most effective strategies that any business, big or small, can use. Spending even a few hours every week on social media marketing can already significantly increase website traffic and overall business, according to most marketers. Still, there is room for improvement, and IP geolocation data can help.

By identifying target consumers’ locations, marketers can implement location segmentation in social media marketing efforts. On Instagram and Facebook, for example, they can specify the places to target for their campaigns. If the marketing campaign aims to convert nonconsumers, marketers can zoom in on areas where they do not have a consumer base yet.

On the other hand, if the marketing campaign aims to increase consumer retention and loyalty, marketers can target areas where existing customers are located.

7. Geo-Fencing Helps Convince Consumers to Purchase

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Geo-fencing is the process of putting up a virtual perimeter around a particular area with the aid of IP geolocation data. In marketing, it can help send timely information that persuades consumers to make a purchase. When prospective customers enter the company’s geo-fenced store, marketers can automatically alert them to ongoing sales and available deals.

8. Aggressive Marketing through Geo-Conquesting

Attracting customers away from competitors lies at the core of marketing strategies. Marketers promote their brands hoping that consumers would choose them over all other companies offering the same products and services.

IP geolocation data can make competitive marketing and advertising more aggressive. In its simplest form, geo-conquesting has two components:

Using IP geolocation data to create a geofence around competitors’ premises
Sending coupons and targeted ads to consumers whose geolocation data reveal that they are within competitors’ geofences

9. More Effective Event Marketing

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Although huge crowds are not currently recommended in light of the COVID-19 pandemic, companies can still employ event marketing to create a buzz or give consumers a physical experience. For instance, they can set up promotional events such as giving away free product samples in selected areas.

IP geolocation can optimize event marketing by pinpointing the best location for the event and segmenting promotional content.

10. Brands Can Count on Weather-Based Advertising

Weather data has always been useful in advertising. Using IP geolocation and weather data can make the strategy more effective since it’s based on real-time data. Marketers can use geolocation and weather-based advertising to draw in customers. Companies can offer products and services based on the weather that target consumers are experiencing. For example, a local restaurant can lure customers experiencing hot weather to buy cold beverages or enjoy air-conditioned meal times.

The ultimate marketing goal is always to reach out to customers in a relevant and personalized way. IP geolocation is among the most recent technologies that are transforming the way marketers do this.

About Suzan Vega