Location Based Advertising (LBA) – A Complete Guide

Businesses around the world depend on the number of frequent visitors to their physical reserves. Therefore, modern marketing techniques focus on location-based advertising (LBA) to target your potential consumers


Location Based Advertising

Businesses around the world depend on the number of frequent visitors to their physical reserves. Therefore, modern marketing techniques focus on location-based advertising (LBA) to target your potential consumers, who may come to the store early to verify the advertising product.

Small and Medium Businesses (SMBs) value LBAs to increase their daily traffic and create more sales conversions.

A report shared by Factual indicated that 9 out of 10 marketers believe location-based advertising leads to higher sales, a more extensive customer base (86%), and higher customer engagement (84%).

About 9 to 10 providers reported that location-based advertising and marketing resulted in higher sales, followed by an increase in their customer base (86%) and increased customer engagement (84%).

As an SMB, you already know the conflict regarding your ROAS (return on advertising spend). This is where the LBA performs its miracle!
As predicted by the electronic marketplace, sellers will spend $ 26.5 billion on LBA in 2020.

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So should SMEs be excluded from location-based advertising (LBA)?

The following are the three main factors that make the difference in how LBAs work for your business:

Customer location data accuracy

Understand customer behavior

Oh creative creation

What is Location Based Advertising (LBA)?

Location Based Advertising

What exactly is location-based advertising (LBA), and why is it so effective in attracting leads?

LBA is the latest innovation in the digital world. This allows you to send your marketing message to your customers within a specific geographical distance.

Businesses can tailor their messages based on retail location, routes, weather, and of course, the behaviour patterns of their local customers.

Because LBAs operate based on location knowledge and customer behaviour, they can more effectively leverage their buying habits and patterns. Creating offers and ads that make sense to engage with local customers is invaluable in encouraging them to travel.

In a way, LBA is a personal and specific form of digital advertising.

Imagine getting a multimedia banner ad on your mobile phone that talks about this big clothing brand sale taking place in a store just one block from you. It would be difficult to visit the store, okay? Especially when you’re already so close!

Then, there’s a cleverly located location button in the ad design that lets you search for directions and instantly sell Wonderland!

That is the potential of LBA. 

Types of LBA techniques

LBA depends on various parameters. As a seller, you may need to efficiently collect and leverage different sets of information to reach your target group of customers.

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Some of the standard practices used for LBA are:

Hyper Contextual Targeting

These location-targeted ads are intended to convey hyper contextual data that is meaningful to your target group’s audience.

Hyperlocal data is collected and then used to deliver these referral messages. While the method is often used to buy intentions and increase conversion rates, it can also be used by agencies and organizations to spread relevant awareness messages within an established radius.

These ads are specifically designed for personal messages that are relevant only to a limited group of viewers. Also, to be more effective, the ads are shown at relevant times during the day.

Geo Aware Targeting

Guides or geo-target use of real-time data (provided by a mobile service provider). Mobile ads that are delivered to some of the radio’s content.

Geo-traffic or real-time advertising has been around for a hundred years.

Again, the key points here are the ability to collect and collect data on business-style patterns. Then when your store is close to your store, these ads are hit at the right time, and they can visit your store to make a purchase or test a new product.

Location or Place-based Targeting

location-based mobile advertising based on the target location-based and meaningful to serve customers going into the defined boundary within a specified period.

Imagine entering a movie hall and receiving promotional content that will also provide you with amazing coupons that can be availed of your snacks while you’re there.

Modern advertising designers understand the use of tools and technologies like iBeacons to communicate with iPhones via Bluetooth. This information is used to determine exactly where it helps determine a specific schedule within which the audience will receive the ad’s content.

Geo Conquesting

This is an excellently targeted marketing strategy used by advertising designers. Winning Jio targets explicitly customers who are physically in or around a competitive location.

New marketing gimmicks are used to offer competitive traffic and more attractive deals when shopping at competitive stores.

Jio Vijay uses advertising technologies in many fields, such as restaurants, clothing logos, financial services, telecommunications services, etc. The idea is to capitalize on consumer behaviour and state of mind at the right time through effective advertising content.

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Benefits of LBA

Coming to the important question- Why use LBAs? And how is it beneficial for business owners (including small-medium business owners)?

Let’s start by understanding the factors that make location-based mobile advertising so effective. Consumers indeed have better access to data, but many other contributing reasons make these ads so successful.

3 main key 

  1. Personalized Timely
  2. On-time
  3. Targeted

1. Personalization: Customizing multi-media advertising based on the customer’s location increases the chance of showing them something relevant.

2. On-time: As location-based content is delivered to users in real-time, the chances of the brand targeting customers at precise moments increase.

3. Targeted: As reported by an IAB UK survey, “around 48% of people use ad blockers because they see advertisements as inappropriate”. Therefore, by searching for advertisements, a situation arises where they can be targeted to specific people in different places.

Steps for starting an LBA campaign

Ready to grow your business through LBA campaigns? To start your campaign, the following are required:

1. Plan the mobile campaign

Location Based Advertising


Designing a mobile advertising campaign is the first step in the journey. Mobile platforms offer the unique advantage of providing real information at a specific time and place that prompts users to take immediate action.

It is essential to consider the following when designing a location-based mobile ad targeting strategy:

  • Control data technology and data to create a location-based strategy for your enterprise.
  • Optimize mobile advertising features. These include contextual, temporal, personal etc.
  • Become a customer-driven tourist and ensure that customers benefit from that mobile marketing and how you present your brand/product.
  • Understand and choose mobile technologies for best results
  • Work with advertising designers to enhance your ad format and content.
  • Ensure that advertising does not interfere with the customer’s experience.
  • Be sure to add CTA tabs like “Click to Call”, “Get Instructions”, “Download Coupon”, etc. Make sure your target audience is motivated to take action immediately after seeing the ad.
  • Establish metrics to measure success (reach, click, click, click, cost per click, conversion, change in leads, foot traffic, sales, etc.). To do this, it needs to monitor consumer actions regarding coupon applications, phone notifications, footprints, etc.
  • Identify the locations of your target messages at a particular time and define the radius around your property.
  • Understand the target audience’s needs and purchasing behaviour when they are in the target area and match their demographics.
  • Get data on your customer’s audit history. This will help design personalized messages intended for the audience.
  • When buying media, look at your options and bid on ads that offer better locations.
  • Use keywords based on location such as “Salon near the café”, etc.

The above points with well-defined marketing goals are considered an excellent strategy for unlocking mobile advertising capability and achieving high sales figures, store visits and conversions.

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Media buying for location-based targeting

To show your ads to targeted customers every time they surf their web (or even at a particular time), you need to buy advertising space.

Advertising spots are purchased for location-based targeting and display your ad appropriately to the right audience. The advertising space purchase process is known as “media buying”.

Solutions such as using the Demand Orientation Platform (DSP) are used for media buying and site targeting. DSPs can be in a “do-it-yourself” model or may be controlled by managed services.

Most service providers usually ask for a minimum advertising cost per campaign.

Advertising agencies work with DSPs and do “media buying”, among other activities such as creating ads, promoting advertising campaigns.

Various creative methods are used to make these advertising campaigns profitable for business owners.

However, when choosing an advertising agency, it is essential to measure success by the number of leads or sales that generate ideas for your business.

Make sure your advertising budget gives you the right results in terms of sales and conversion.

Producing banner creatives

Brand design plays a vital role in designing a successful mobile advertising campaign. Rich interactive media ads are incredibly useful in attracting consumers’ attention and converting them into conversions.

Various creative advertising services are provided by wealthy media sellers available in the market. Most organizations are ready to push templates that can be customized to suit your needs. Rich media advertising can be integrated into other services such as media buying, optimization and more.

Ads with tabs as follows are considered to be very successful:

  • Tap on a call button that helps users book/reserve a place.
  • Reduce recoverable coupons as soon as customers walk into the store.
  • Get similar instructions or features that will guide a customer to your store.

Ad campaign management, tracking and optimizing.

After placing your creatives, you need to manage your campaign effectively during its execution. LBA campaigns go step by step to accomplish your goals.

Therefore it is essential to ensure effective management to maximize its impact.

Some essential tips to keep in mind while managing your campaign are:

  • Create an appropriate tracking mechanism to collect data based on your metric plan (cost per click, cost per conversion, sales, etc.). It is essential to assess whether a location-based mobile advertising campaign is meeting its goals. In short, make sure that all actions (taken after viewing the advertisement) can be tracked.
  • Obtain enough data to gain insight into the behaviour of your target customers. The data generated during the first phase of your campaign can also optimize your future campaigns.
  • When considering outsourcing, choose an advertising agency that can provide end-to-end mobile advertising services.
  • Base your transactions on top results and sales, as previously mentioned. The non-converting advertising scene means nothing in the business world.
  • Calculate the average annual and cost of living (LTV) per customer and plan your advertising costs accordingly.

Measuring the quality of location data

For an LBA campaign to succeed, it is essential to rely on the following three measurement criteria:

1. Accuracy – The distance between the approximate and the actual location.

2. Precision – The level of precision of a point for a particular location of the device. Up to two decimal places are accurate within one kilometre of the user’s location, while up to 4 decimal places can be accurately determined at 10 meters.

3. Reviewability – The time that elapses between location data is collected and transmitted to ad servers.

The above factors can, in turn, be influenced by data sources, GPS coordinates, applications, data interpretation accuracy, centroid and more.

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How can businesses benefit from LBA?

Almost all businesses that operate a physical store and rely on their sales data can benefit from the LBA.

But not all!

Even service-related companies such as finance, electricians, painters, sweepers, beauticians, etc. now use LBAs to improve their business reach.

Service professionals work in certain areas, and hyperlocal mobile advertising helps find new clients or get more work from existing ones.

Here are some examples that illustrate how businesses can benefit from LBAs.

Restaurants and food chains

Restaurants and food chains

Restaurants and dining joint mobile ads were the most active players in the industry. The geo-target customers, who are local people and usually within a certain output radius, had a winning strategy.

Time-based special promotion/food coupons are placed within the advertisement design and given to selected groups near the outlet.

Fast food chains

In 2014, Starbucks used LBA mobile advertisements to reach their potential customers. The measure of success was the foot or number of people visiting the grocery store after seeing the advertisement.

Since then, various other global fast-food chains have been using LBAs to increase their sales.

Clothing and accessory brands

Apps such as Regent Street are based on user input. Users enter their likes and dislike into the app, and users are shown the relevant store at a certain distance from the store.

Cars and automobiles

Car dealerships have benefited from the use of LBAs.

Brands such as Rodo Ford have entered their customer base with a high probability of buying men between 30 and 45. Alternatively, the store locator is included in the CTA format (call to action function).

Result? Total growth of people, such as watching people’s advertisements, visiting a store, knowing about a car, or order.

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With Health and Fit being the latest fashion trend, it is natural for the region to tap the potential of LBA’s latest technology in the world.

Gyms use different formats for LBAs. These include geo-targeting, or targeting a customer as soon as they are within a pre-defined gym building radius.

Others include notions like Bhumi Vijay, where health centres target customers entering a competitive building complex. As soon as you enter a gym building to see their monthly/annual plans, your mobile device gets a more attractive device from your centre. Smart, isn’t it?

The filling couple and offline forms are comfortable with some exceptional commitment, and you get your hands on!

Property dealers

Real estate agents may use the LBA technique. The use of media-rich components, such as property photo galleries and map guides, attract customers to visit. Other CTA applications, such as clicks and calls to bookings, have been added to the ad template.

Jio Jagriti Goal helps homeowners see/visit property found to hunt at their home. Other marketing strategies, such as land conquest, can also be used effectively.


The world of advertising has changed.

Options ranging from static banner ads to rich media, interactive mobile ads and now location-based advertising (LBA) are getting better. With the miracle that LBA advertising can do for businesses, more and more enterprises are ready to adopt the technology.

This has helped run a brick, and mortar stores increased their conversions and helped create more meaningful customer relationships. That said, advertising design and targeting require a good deal of planning and execution expertise. Ultimately, every business owner will want to justify their advertising spend and see that it brings satisfactory results.


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