Geolocation targeting is a targeting approach that uses the location of the customer as axes of customers segmentation. Even though geolocation targeting is considered one of the most disruptive trends that are changing mobile marketing, it actually has been around for a long time. Since the invention of the Internet, marketers have been able to target people using the IP address of their PCs. Using their IP addresses, marketers can understand where the users are located, from country to state to ZIP code.
But when it comes to mobile, the rules of the game are different on two very important issues. First, the technology utilized is different: mobile phones support GPS location, much more accurate than the IP address location (the IP address could provide the location of the datacenter for your wireless carrier).Second, and probably more important, PCs and laptops are used indoor only, while mobile phones are always with the users, both indoor and outdoor. The ubiqity of the mobile phones allows marketers to reach customers in each moment of their day, and in particular when they are about to shop for products. Geolocation targeting on mobile allows shops to send customers ads when they walk near the shop; check-ins often are rewarded with prizes such as free-samples; on-the-spot coupon like groupon now! give customers offers on perishable items in their action span.
The mobile channel can dramatically boost the already cospicuous results of geolocation targeting: marketers can potentially get much more physically close to their customers, with consequent positive impacts on brand marketing, conversion rate, and ultimately ROI.
Read more: http://www.cmo.com/articles/2014/3/21/what_marketers_need_.html
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