The Pivotal Role of Geolocation in Programmatic Advertising

Datawrkz Experts

Published October 16, 2024

Superbowl ads are expensive. That’s because advertisers can access a massive number of hugely relevant customers at the time the Super Bowl is on.

But think of the people who might be watching the Super Bowl in a sports bar or pub.

Now think of the advertising opportunities when you consider that you could know (i) that a certain segment is near/at a bar(s) (ii) that they fit specific demographics (iii) they are likely with friends and (iv) it’s Super Bowl Sunday.

How much more valuable will this be to some brands?

Baking in a user’s physical location into programmatic advertising so that your ads take this into account is called geolocation targeting.

This technology utilizes IP addresses, GPS data, Wi-Fi signals, and other data points to determine a user’s approximate location.

Geolocation allows advertisers to reach specific geographic areas, such as cities, neighborhoods, or even individual stores. By targeting ads to users in relevant locations, advertisers can improve ad relevance and engagement.

For instance, Burger King ran a unique advertising campaign some years back that used geolocation data to specifically offer 1-cent burgers to people near the store locations of their biggest competitor – McDonalds.

The results were astounding, as they raked up millions of app downloads.

At Datawrkz, we did something very similar for a large pizza chain, offering discount coupons that varied depending on a person’s proximity to an outlet, driving significant redemptions.

Offering location-specific promotions and deals offers unique opportunities to brands that amplify relevance in the moment.

For instance, a restaurant could target tourists who are near their outlet. Or a hotel could target automobile traffic from specific cities that’s crossing state lines near their location. Or a winter clothing manufacturer could target people in the airport of a ski town at the times that flights land.

The possibilities are huge.

Geolocation data can also be used to gather insights into local market trends and consumer behavior, helping advertisers optimize their campaigns and allocate budgets more effectively.

Of course, advertisers have to overcome challenges including data accuracy & volumes, ensuring they are complying with privacy regulations and ensuring their systems are prepared to handle all the different devices and data to support the campaign.

But if, as an advertiser, you haven’t explored the possibilities of using geolocation in your programmatic campaigns, you’re probably missing a trick.

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