Location Based Marketing is a direct marketing strategy that uses a mobile device´s location to distribute content or services associated with a particular place. It provides the ability for advertisers, to personalize content based on the context of the individual user.
The technology behind Location Based Marketing takes advantage of geofencing, a software feature that uses triggers to send alerts when a device crosses a pre-defined geographic boundary. The goal of this marketing strategy, as with any other mobile marketing initiative, is to capture the user´s attention and to turn him into a customer.
Location Based Marketing is especially beneficial for small-to-medium businesses (SMBs) who are now able to target potential customers who are within arms reach of their store accurately. It enables them to gain knowledge about where their consumers are and how they usually behave. This way they can tap into their habits and also encourage them with offers and messages that make sense to them and which relate to their location.