Geographic targeting is the most underused target element available to marketers today, providing an excellent opportunity for brands to invest time and money in smarter geographic targeting. Most ad platforms now allow detailed geographic targeting, which usually includes a zipcode or even GPS coordinates. Surprisingly, few advertisers consciously invest in this industry. Audience segmentation / retargeting (via cookies) has dominated online advertising and is now threatened by legislation and the end of third-party cookies. The purpose of research and demographic focus on connected social networks is very precious. Contextual purpose gets more attention at the end of cookies. This geographic segmentation has led to the end of the list in terms of investment and understanding. This is a mistake because it actually offers many benefits, and to be successful advertisers need to understand how it affects their business.
- Works on multiple channels
Geographic targeting and zip code optimization can be used effectively on major search engines, social networks, online screens, and video platforms. Being location-based, it can also be used on external and connected digital TVs, as well as traditional media channels such as radio and TV. This data has clearly been used for direct mail and direct delivery for years. Hence, it can be used by many media to understand how effective targeting and geographic optimization can be for brands. In addition, it can be used for personalization (online, in the app, or on connected devices) and business intelligence. What has recently changed for geo is the speed at which data can be analyzed and optimized and the introduction of machine learning techniques, making some very old methodologies relevant in the digital age.
- It can be a proxy for other variables
Oren Netzer, Co-Founder, and CEO, clearly
At the zip / postal code level, geographic data points can help reach other audiences. Geographic data goes hand in hand with the concept of home, large or small businesses (through explicit registration or multiple devices on an IP address). Corporate SIC codes are typically available from corporate geographic IP providers. More interesting, however, is the ability to use zip codes as a strong proxy/predictor of age/gender/income/stage of life. Big data companies such as Experian and Equifax have long used this data to group into profiles, making it ideal for corporate brands. However, this data is not widely used in modern media.
- Can comply with legislation
You have to be very careful here and mention what the data is and what is incompatible. When used correctly, geographic data is considered compatible for use in marketing, insights, and personalization. In some cases, such as with GPS coordinates, it is necessary to group data into grids to ensure that it cannot identify individuals. Well-structured geographic data should be a secure dataset that can be used and is likely to become more important as legislation and technology evolve.
- This leads to huge performance increases
For many brands, geographic data can play an important role in forecasting and optimizing marketing performance. Brands will find that they have a different affinity in different parts of the country. In addition, most brands behave differently based on age, demographic and geographic profiles. Advances in machine learning and artificial intelligence, along with data insights available on online channels, make profiling this data more powerful than ever, and it’s vital brands understand their geographic dynamics for greater marketing and personalization.
- Geographic data requires experience
Perhaps the reason why geographic data is underused is surprisingly difficult to manage. Different geographic sources have different levels of accuracy. In addition, dealing with bad sales data at the grain level through predictive models is an important part of exploiting its full potential. Therefore, brands are advised to bring success story experts to this space to achieve success. Knowing how to use different measurement platforms and geostrategic systems, how to access data, how to use advanced machine / AI learning techniques, and how to better distribute the benefits across marketing platforms are essential and relatively rare skills.
- This is the time
Digital marketing channels and statistics in particular will change in the coming years due to legislation and technology. Therefore, it is essential that brands prepare and use the current environment to understand their geodynamics. Those who do will have a great advantage over those who don’t. Emerging benefits, particularly machine learning and artificial intelligence, which are now accelerating the insights, personalization, and marketing benefits of some brands, can become a real distinction between successful brands, marketing programs, and the rest.
- It’s for everyone
One of the most common marketing misconceptions is that geo-optimization is only for companies with a geographic focus. For example, those whom all have their stores in a certain part of the country. I’ve also heard brands claim to cover all places evenly, making it irrelevant. He doesn’t understand the impact of the geo. Location-based targeting highlights changes in the way brands or product preferences manifest in relation to locations. While not, the detailed location of the destination also shows differences in terms of demographics, income, life stages, and more. As you walk down the street you can clearly see the changes in the different types of accommodation. Geo-optimization brings it up in online advertisements.