What’s Geomarketing?

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Geomarketing is the use of geographic information in planning and implementing marketing strategies. This type of marketing creates maps based on established geographic specifications to analyze customer behavior. Advertising companies can use this information at every level of the marketing mix and then target their advertising campaigns to appeal to consumers based on where they may shop or live.

The marketing mix identifies the four key elements that advertising companies typically use to design marketing campaigns: product, price, promotion, and location. The product first identifies which items or services will be sold. Price determines what monetary value will be placed on the goods or services for sale based on the cost of production relative to the economic climate in which they can be sold. The promotion identifies the sales tactics and advertising devices that will be used to present the products and services and decides in which areas these tactics and devices will be applied.

Using a geomarketing approach, advertisers can use the marketing mix more effectively by offering products to specific audiences that would be highly receptive to them. Advertisers can use geographic data to determine whether a product would be well received in particular geographic areas and what price range would allow that product to sell well before testing the product in the marketplace. This strategy also helps advertisers determine which geographic areas would be more receptive to certain products than other areas and allows them to choose the best possible promotional campaign to advertise those areas.

TV commercials are an example of geomarketing in use. Advertisers choose the shows on which to buy ad time based on how well a TV show’s target audience aligns with the product’s target audience. For example, soap operas, which are most frequently aired during the day, typically have large audiences of nonworking parents of young children or adults who work from home. Many commercials that air during soap operas offer products that target that socio-economic group and offer parenting products and home business opportunities.

Geomarketing research companies implement a variety of methods to obtain the data they use in creating marketing maps. They can use internet search to gain insight into the socioeconomic status of a region. They may conduct focus groups where randomly selected individuals are brought together to provide feedback on various products. Government census data can also play a role in allowing researchers to gain insight into the racial makeup of a particular region. A census can also show the age distribution of the area and what percentage of the population is made up of men versus women. This information can then be presented visually on a map and sold to a marketing firm attempting to promote products within that region.

Geo-targeting is the aspect of geomarketing that allows advertisers to offer products in a region based entirely on knowledge of that region. Garden companies can offer heat-resistant plants in the south and cold-climate plants in the north, for example depending on the climatic conditions.

Geo-based marketing is also very useful when marketing to Internet audiences. A server can locate a computer’s IP address and determine which region a user lives in, then place advertisements on the websites users visit based on the location of the IP address. The server can also track the types of websites visited by the user and determine the approximate age and status in the user’s life, creating further specialization in the ads presented. A user who repeatedly searches for children’s furniture, for example, may start getting ads for children’s clothing and children’s stores. Similarly, a user who frequently visits auto mechanic websites may start getting local advertising for auto parts and auto dealers.

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