Everything About Location Based Advertising

Mobile advertising is only beginning to receive attention across the world. Location-based Advertising is a specific type of mobile advertising.

Location-based Advertising means information that is controlled by advertising companies especially for those locations where consumers access an advertising medium. This is a comparatively new medium that allows users to be exposed to advertising on the communication devices that they carry with them, specifically in the form of smartphones.


It is a personal form of advertising that uses location-based advertising service that is aimed at targeted users. It is now a new technology rather it has been around for some years. It is based on the same concept as majorly newspaper ads are based on the location at which newspaper is being distributed. It is the same concept but digitalized and technology-driven.

What is Location based advertising

Location-based Advertising is developed by the efficient combination of mobile marketing and advertising with location-based services (LBS).

Currently, we are living in a time when technological advancements have enabled us to contacts individuals at any time and any place. It is because of the ever-growing presence of mobile phones, especially smartphones that have GPS. The modern technologies hold the capacity for marketers to convey information and knowledge to customers based on their accessibility to places where the marketers’ products are available.

Location-based Advertising definition can be real-time marketing, fulfilling customer needs, and demands at the time and place they want it.

Types of Location-based Advertising

There are two approaches to Location-based Advertising.

Push Approach

It occurs when a marketer works with the carrier and the delivery networks to send (push) ads to the user that is determined by the location of the device. Moreover, this thing could be targeted in a better way if information such as context, psychographics, and demographics, etc. is available about the users.

There are two other options in push approach viz. opt-out and opt-in. Opt-out refers to such a situation where marketers would have the option to send the ads to anyone they wanted to until users asked them not to send ads anymore. On the other hand, the opt-in approach refers to a situation where a user permits marketers to send them messages, a type of permission marketing. However, all the advertisers must be abided by certain rules and legal regulations set in place and respect users’ choices.

Pull Approach

Pull approach in Location-based Advertising refers to a situation when users ask some information or use some service at a time and meanwhile during the process is exposed to commercial messages. In reality, they are seeking (pulling) information rather than information seeking (pushing) them. For example, a person visiting London could make use of his device to access a portal where he wants to seek Local Restaurants. After clicking on this, the next things he may seek is Italian. After this, he gets a list of 5 restaurants that all are within the range of one-mile distance from his current location. Because the user exercises his control to choose the time and place to access the information in the pull approach, hence it is opt-in.

Location-based Advertising is closely related to mobile advertising, which is further divided into the messaging, display, and search and product placement.

Mobile marketing will achieve the greatest success when mobile location combined with other context-aware parameters is leveraged to filter the content to improve its relevance.

Future Outlook

The growth for advertising agencies to utilize Location-based Advertising is going to increase significantly in the next few years. Location-based Advertising is likely to gain more traction in the coming future as it provides a good opportunity for new-age businesses.

The location-based service and other segments of mobile services together can create more value for the technology in the next few years. The technology is widely accepted by customers due of which there are higher conversion chances.

New trends in users’ behavior show that mobile users want to receive relevant and promotional advertising content. If mobile location is used in the correct method, then most mobile phones will be more compelling for marketing and advertising than any other channel of media. In different parts of the world, several forms of Location-based Advertising have already been demonstrated.

Recently, one of the key components of this technology will take the involvement of GPS within mobile phones. Other technologies that enable Location-based Advertising involve the use of Bluetooth or RFID that are attached to things such as vending machines, storefronts, and poster boards to show to people with enabled devices who pass near to them. Lastly, consumers themselves can submit locations into their devices (such as city name, zip codes, and area codes) that can activate a primary level of location specificity.

As we go forward, the Location-based Advertising technology will assist marketers in reaching to smartphones subscribers with a specific location. However, attitudes of users will decide the marketers’ promotional strategies of technology.

Summing up

Combined with proper and integrated strategies, Location-based Advertising serves as a beneficial tool for many advertising agencies. Location-based Advertising is gaining massive appeal in the new age industry. The Technology is the key to unlock the most values in the Mobile advertising market.

The Location-based Advertising market must seek different paths to get together and execution strategies which establish the optimum credibility among the customers around the Location-based Advertising. Proper planning and implementation around how mobile location is used to increase Location-based Advertising will be significant in the next few years.

Importantly, acceptance of this technology by users should improve with time if the technology wants to thrive more. While the industry is in a flourishing phase, there is still a lot more to be done for the technology. Location-based Advertising will be an extremely powerful tool for marketers and advertisers in the next few years.

Votes: 0
E-mail me when people leave their comments –

Knowledge Based Value (KBV) Research is a global brand and consulting firm serving all kinds of business verticals, government and non-governmental organizations, and not-for-profit organizations. Our motto is to extend our services that will have a lasting impact on our clients who trust us with their business goals.

You need to be a member of Global Risk Community to add comments!

Join Global Risk Community

    About Us

    The GlobalRisk Community is a thriving community of risk managers and associated service providers. Our purpose is to foster business, networking and educational explorations among members. Our goal is to be the worlds premier Risk forum and contribute to better understanding of the complex world of risk.

    Business Partners

    For companies wanting to create a greater visibility for their products and services among their prospects in the Risk market: Send your business partnership request by filling in the form here!