Hyperlocal Advertising is a specific type of geo targeting. It allows marketers to use a smartphone’s GPS data to geographically target audiences for the purpose of delivering relevant ads.
Combined with the ability to buy and sell ads individually through programmatic ad networks, this is a very powerful tool for marketers to engage their audiences.
If a user accepts the location-sharing request of an application, the app will basically be aware of his GPS coordinates at all times. If the app happens to be supported by ads, these coordinates will probably be passed on to the ad network of the publisher. Thus, it can deliver advertisements based on the user’s location.
There are different types of targeting that advertisers can use within hyperlocal advertising:
- Geofencing – targeting users in a selected area
- Retargeting – setting enticing offers to bring back customers who were near a store
- Contextual Targeting – targeting based on the type of location, demographics and the characteristics of the area
Due to these different strategies, hyperlocal advertising can help advertisers to deliver personal and relevant messages to their target audiences. Besides, it is a powerful way for companies to build relationships with their prospects and to interact with them on a much deeper level.