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What is Geotargeting and its Benefits on eCommerce

What is Geotargeting and its Benefits on eCommerce

What if you could direct your advertising only to people in a specific geographic area? With geotargeting, you can do just that.

Geotargeting is the process of targeting a particular audience based on their location. For example, marketers can zero in on their target customers using their postal code, Internet Protocol (IP) address, or Global Positioning System (GPS) coordinates.

Geotargeting is a valuable tool for eCommerce stores because it allows them to target consumers in specific areas.

By using geotargeting, businesses can ensure they’re reaching the right people with their advertising and marketing efforts.

Read on to learn more about geotargeting and how your eCommerce store can take advantage of it. 

What is Geotargeting and How Does It Work

Geotargeting is a technique that enables businesses to target specific markets with their advertising and marketing campaigns.

Companies can effectively reach their intended audience and convert them into customers by focusing on consumers in particular locations.

Marketers can use several geotargeting methods to reach their target market. One standard method is to target customers based on their location.

For example, if a company targets consumers in the United States, it may use geotargeting to target ads to customers in particular states or regions.

Another method is to target buyers based on their zip code. This tactic allows businesses to target ads to customers in an exact geographic area. 

Besides those mentioned earlier, companies can geotarget consumers based on their IP addresses. IP targeting can deliver advertisements to smartphones, tablets, laptops, or any gadget connected to a WIFI network.

Additionally, businesses can use geotargeting to target ads on mobile devices. This method allows companies to focus on consumers using a specific type of mobile device. 

The Benefits of Geotargeting for Ecommerce Stores

Ecommerce platforms are now more accessible than ever, with the advent of new technologies like 5G and the Internet of Things.

Geographical boundaries are no longer restrictions, and online shoppers can purchase goods anywhere.

geotargeted popups campaigns geotargeting ecommerce

Then again, this statement doesn’t mean businesses shouldn’t focus on their own country when it comes to eCommerce. Instead, entrepreneurs should consider geotargeting to reach their local target market. Here are some of the benefits of geotargeting for eCommerce stores:

Reach a Larger Audience

With the internet, companies can connect with a global audience. However, not all consumers are equally interested in products from all over the world.

Geotargeting enables businesses to target advertisements to customers in specific regions or countries, ensuring that the ads are relevant. 

Increase Conversion Rates

Businesses can boost their conversion rates by targeting consumer ads in a particular location. As a result, customers are more likely to purchase products suitable for their homes.

Improve Customer Satisfaction

Additionally, businesses can improve customer satisfaction with geotargeting. For example, some studies claim that customers are more likely to purchase from an eCommerce store closer to their area. 

Drive Local Sales

Aside from improving customer satisfaction, geotargeting can help companies drive local sales. The technique can yield more sales and increase foot traffic to physical stores. If you’re using website popups, you can optimize them with geotargeting feature to create geotargeted popup campaigns for your local market.

geotargeted popups campaigns geotargeting ecommerce

Generate Leads

Likewise, geotargeting can encourage consumers to visit the brand’s websites or physical stores and learn more about its products. 

Promote Brand Awareness

Meanwhile, by targeting a specific region, businesses can connect with potential customers who may not be familiar with their brand. Geotargeting can assist companies in promoting brand awareness and expanding their reach. 

Save on Advertising Costs

Finally, companies can save on advertising expenses by targeting ads to specific locations. Geotargeting can help businesses avoid wasting money on advertisements incompatible with their target market. 

How to Set Up Geotargeting for Your Store

Indeed, geotargeting is an excellent way to ensure your eCommerce store is getting seen by the right people in the correct location.

By targeting a particular geographic area, you can ensure that people who will be receptive to your products and services will see your ads. 

geotargeted popups campaigns geotargeting ecommerce

There are several ways to set up geotargeting, but remember, the best eCommerce platforms make it easy to target specific countries, regions, or even city blocks. Regardless, below are some of the techniques for setting up geotargeting for your store: 

Use a Geo-Targeted Ecommerce Platform

The first and most straightforward way to set up geotargeting is to employ an eCommerce platform that offers this function. Some of the major programs available in the market today make it easy to choose the regions or countries you want to target with your store.

All you need to do is select the country or countries you want to target from a drop-down menu, and the platform will automatically geotarget those locations.

Use a Geotargeting Plugin

If your eCommerce platform doesn’t offer built-in geotargeting, you can install a plugin to add this functionality. For instance, if you want to create geotargeted popup campaigns, you can use Poptin popup builder as they have a built-in geotargeting feature.

Some e-commerce platforms allow plugins so you can implement geotargeting in your store. Also, some plugins let you select the countries or regions you want to target. 

Use a Geo-Redirect Service

Another method to set up geotargeting is to adopt a geo-direct service. This service will automatically redirect visitors to your e-commerce store based on their location. For instance, if you want to target visitors from the United States, you can automatically use a geo-redirect service to redirect them to your US store.

Use a CDN

A CDN, or content delivery network, is an excellent way to ensure the right people in the right location will see your eCommerce store. A CDN will mirror your store across multiple servers worldwide, making it easy for visitors to find and access your shop no matter their location. 

Examples of Successful Geotargeting Campaigns

Companies increasingly use geotargeting to segment their audiences and personalize their messages. Brands can employ geotargeting for online and offline marketing campaigns. When done correctly, it can be a proactive way to reach target audiences and boost conversions.

An example of a geotargeted campaign is when an ecommerce store sells winter clothing. The brand could focus ads on users in locations with cold weather. This technique would be an effective use of marketing resources than targeting ads to all users, regardless of location. There are numerous examples of successful geotargeting campaigns. Here are some of them:

  • Toyota: The famous automotive brand created a “Let’s Go Places” campaign targeting specific US locations. Using geofilters, the company promoted local hotspots using a trendy platform and prompted users to explore their area while driving a Toyota vehicle. The result was an increase in brand awareness and sales.
  • Ikea: Meanwhile, Ikea ran a geotargeted ad campaign that used beacons to target customers near an Ikea store. The ads promoted special offers and products available at the nearby store. Their campaign resulted in a 5.7% increase in in-store visits.
  • Uniqlo: On the other hand, this Japanese casual wear retailer launched its “Uniqlo Check-in Chance” campaign in 2012. With this initiative, shoppers who checked into select Uniqlo locations on Foursquare could win prizes. The campaign successfully drove traffic to stores and generated buzz around the brand. 

As you can see, there are various examples of successful geotargeting campaigns. Businesses can boost their reach and conversions by targeting ads and promotions to a particular location. If you want to run a winning geotargeting campaign, consider adopting some examples above for inspiration. 

Tips for Optimizing Your Geotargeting Strategy

Now that you fully understand geotargeting, here are some tips to help you optimize your strategy:

  • Identify your target audience: Who are the customers you’re trying to reach with your campaign? Be sure to segment your audience by location, age, gender, interests, and other factors. Don’t forget to exclude any places you don’t want to target.
  • Personalize your message: What’s the best way to reach your audience in each location? How can you customize your message to appeal to each group? Keep in mind when targeting local customers, you must know their language. Hence, add native phrases and words to your content to make it more relatable.
  • Test and measure: Try varying geotargeting strategies and see what works best for your eCommerce store. Remember to track your data so you can fine-tune your approach over time.

FAQs about Geotargeting and Ecommerce Stores

With various eCommerce stores adopting geotargeting, it’s no surprise you’ll find numerous frequently asked questions on the internet. Here are some of them:

  • How is geotargeting used in marketing?

Geotargeting is a technique businesses use to target specific markets with their advertising and marketing campaigns. By targeting consumers in particular locations, companies can more effectively reach their audience and convert them into customers.

  • What is the difference between geofencing and geotargeting?

To emphasize, geotargeting is a method to target ads and promotions to particular locations. In comparison, geofencing is a technique that uses GPS technology to create a virtual fence around a specific site.

Precise Marketing for Your eCommerce Store

Geotargeting is a powerful tool that can help eCommerce stores boost their sales and marketing efforts. Businesses can set up campaigns to reach customers and generate more profits by understanding how geotargeting works and learning its benefits.

With the right strategy, this technique can be an incredibly effective way to reinforce your online sales. 

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