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How Canadian Brands Can Leverage Location-Based Advertising

Foursquare logo
Rogers Communications customers now can receive alerts to deals when they are near specific retailers. By subscribing to text messages that send deals to customers, Rogers users can first “check-in” using Foursquare and then receive discounts at six particular retailers that they are close by. Retailers include Rogers Wireless, Sears Canada, A&W Restaurants, The Second Cup Ltd., Future Shop, and Pizza Hut.
Here are three advantages digital marketers can leverage with the rise of location-based social networking:
  1. Enhance your target advertising.

    You can showcase display advertisements to specific groups of consumers by utilizing location-based apps such as Foursquare. For example, if you are the Vancouver Canucks, you can promote season tickets to consumers who have “checked-in” at Pizza Hut as quite a few hockey fans go Pizza Hut to catch a hockey game. Moreover, you can show advertisements at optimal times with location-based advertising. For instance, if you are Famous Players, you can promote your movies to users who have “checked-in” at Pizza Hut at night so you can encourage them to catch a movie after dinner.

  2. Reduce your advertising cost.

    You can reduce your advertising cost drastically with location-based advertising by narrowing your ads to a specific group of consumers. This will allow you to lessen your advertising dollars as you will not broadcast your brand massively to all consumers. Instead, you are simply disseminating your products or services to a defined group of users. You can further reduce your ad cost with location-based advertising by encouraging Foursquare users to share the discounts they’ve received on their own social networks. This will enable you to bypass traditional media and conveniently promote your brand through word-of-mouth and social networking. This tactic is particularly effective if the consumer has a large Facebook or Twitter network as a single tweet or Facebook status can reach thousands of people online. This digital advertising approach could possibly be more cost-effective than Google AdWords as you all you have to invest is a small sum of money for the discounts you are giving away. In return, you will be able to increase your customer-based radically as consumers are more likely to be influenced by their peers than a simple text-ad.

  3. Improve your geo-targeting.

    If you are a local business that wants to target local shoppers or a brand that wants to expand to a specific geographic location, location-based advertising is possibly the best tool for you. With location-based advertising, you can gain brand recognition in your specific city or region by displaying tailored advertisements that best suit local shoppers. For instance, if you are a Vancouver-based bookstore, you can display an ad that showcases the Canadian maple leaf or other Canadian symbols to Vancouver shoppers so that you can utilize a sense of patriotism to encourage Vancouver consumers to visit your store. This same tactic can be applied to companies that want to target consumers in other geographic locations. By customizing your message to best suit the local culture, you can showcase ads that best appeal to local shoppers.

By using location-based advertising, brands and advertisers can connect with consumers in a more personalized, engaging way. Brands will also be able to sway consumer decisions by showcasing the right ads to the right consumers at the right time. This in turn will hopefully help companies encourage more qualified consumers to visit their retail stores or online websites so that they can receive maximum results on their advertising initiatives.
Location-based digital advertising is most effective when a company has a strong brand reputation or appeal and can attract prospects when prospective clients are exposed to the company's ads. If you're interested in enhancing your brand appeal, use our Branding servicesBrand Identity Creation and Brand Strategy Roadmap.