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Location-Based Marketing Vs. Proximity Marketing: What's The Difference?

In the next few minutes, I want to explain location-based marketing and how it compares to proximity marketing and everything that you might need to know. Let's jump in.



VIDEO NOTES | location based marketing series


When we talk about location-based marketing, we're mostly talking about geofences which are mainly suited for outdoor usage. Out here, the outer circle, we're talking about technologies that are used to judge customers by location who are maybe pretty far away, at a macro level, at the near level. Things like beacons and immediate proximity technologies that are more exact and maybe a tap of a smartphone off a tag or a media object. Yes, you know, geofencing technologies and location-based marketing is based, as I've mentioned on at the macro stage. Customers are within a given area or a business.

And you just want to know within several hundred meters or kilometers that they're in this area, so that you can reach out to them, that you can market, and then you can track that they have been there.

Now one of the great things about this is that you can use a virtual perimeter which basically is what geofencing entails, and you can draw these shapes around specific buildings, you can target competitors, and you can basically learn various POIs, or points of interest, and the visitation data that customers have coming and going from these locations. It can also give you great competitive intel so you know what customers that are loyal that are also frequenting the competition. You wanna take that back into your strategy, segment, and then maybe give customers the right nudge.

That's kind of location-based marketing and it very much is from this macro perspective. We're using cell towers. We're using WiFi technologies, ambient WiFi to understand customers in a broader sense, using these virtual perimeters that don't require any hardware to be deployed.

Now, as we come in from the macro stage into, you know, you're much nearer to that point of interest and you wanna be a little bit more specific, you wanna be more granular and more exact, you need to change the technologies that you use. And that's why we flip over from using things like WiFi and cell towers, which are great for outdoors and several hundred meters of accuracy. Some cases, all the way down to 15 meters of accuracy, but I'll leave that to a different video. That's Pulsate's geofencing that I'm talking about. With beacons, that's what we do when we wanna get more granular, coming down from the geofencing level to know that customers are near. They're in the store. They've just walked in. Or they're standing near to this product.

what are the benefits of proximity marketing?

But what are the benefits of proximity marketing? I'll come over to this side. Is that it's suitable for indoor use much more than outdoor use, which would be the macro level. We've zoomed in here now to micro location and proximity marketing. Best for indoor positioning, for indoor navigation, for highlighting products that you are near an object. Turn-by-turn directions maybe, if you're in an airport. You wanna do navigation-type things. And it can monitor for devices down to a couple of meters. And then if you get very clever with the way you've set up your beacons, you could potentially do things down to centimeter level of accuracy, but that is quite difficult to get.

Generally, you just wanna know someone is a meter or two away from a product or they're a meter within range, which puts them in a certain aisle, perhaps, within the store. And usually that's enough, but you couldn't ever do that with cell tower technologies. You could maybe do a little bit of this with kind of indoor WiFi routers, which is using your own routers. This is kind of ambient WiFi, using anyone's routers. But I don't really recommend WiFi to do proximity marketing. It doesn't really work very well, to tell you the truth.

Monitoring for locations that are very granular. And then as I mentioned, providing product information and information based on POIs that are very proximal to you, that you're right beside. And there are the key differences, really, between location-based marketing and proximity marketing. You use them for different things, from initially attracting attention and bringing people in, and then later, inspiring action, using the proximity technologies that are used to give you that virtual tap on the shoulder and explain things that are near.

That's it for this video. And as always, you can leave a comment below the video. When you do so, you inspire the whole community. If you have questions, well, you can send me a tweet. I'm Patrick Leddy. See you guys next time.