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What Is Proximity Marketing?

Posted at Oct 22, 2018 1:16:00 PM by thatagency | Share

A 2018 report by 451 Research, an IT research and advisory company, found that nearly 82% of marketers intend to scale up their use of location data in proximity marketing over the next two years. Statistics like these would indicate we're entering a very new age of marketing, one in which a customer's location desperately matters to advertisers. If you're not yet familiar with the idea of proximity marketing, now’s the time to get on board.

Proximity Marketing | Location Data | THAT Agency

What Is It?

The term 'proximity marketing' simply means using a system that contains location technologies to communicate with your potential customers on their phones or tablets. It's becoming more and more common all the time.

Theme parks use it through apps that help guide consumers from place to place. Concert goers often get notifications from the venue that help push them to buy more. Maybe the most prominent example of this type of marketing to come out of the last few years was the Pokemon Go game. Starbucks, 7-Eleven, and many other companies were brand partners within that game, and it meant big bonuses for users and serious exposure for retailers.

There are a few reasons this type of marketing matters. It provides a chance to customize your messages and promotions to a certain group of people based solely on their location. That could mean a much higher conversion rate. It also gives you get data you might not ordinarily have access to, which could lead to a much deeper understanding of your consumers.

The Types of Technologies Involved

Not all proximity marketing works the same way. The most popular type is using an internet-enabled device, either through wifi or 4G, with GPS location data enabled. You could also target Bluetooth-enabled devices within the range of a transmitter. NFC phones that can read RFID chips can also be used. At its most primitive, QR codes can be deployed for proximity marketing, too.

Concerns Surrounding Proximity Marketing

For many people, this area is rife with concern. There are real privacy issues, and fines have been levied by the Federal Trade Commission for advertisers who choose to ignore the boundaries.

The key, though, is to think carefully about permissions and deploy them early and often. While the ideas surrounding the technology were once a tangled web, definition is starting to become a little clearer, and it will likely become more so as companies utilize these strategies.

What To Consider

If you think using location data for proximity marketing might be right for your company, there are a few things to consider. First, keep in mind that location data isn't 100% accurate. Luckily, this too is changing, and as more companies get involved, better data is likely to emerge. Second, remember that there are various types of technologies you can leverage. The key is that you choose the best one to meet your needs.

To learn more about the power of proximity marketing for your company, contact THAT today

P.S. Don't miss out on our free guide to proving the value of your marketing efforts:

A Guide to Proving the Value of Your Marketing Efforts | THAT Agency

Tags: Digital Marketing

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