Reach Any Location with Laser-Guided Geographic Targeting, Part I
October 14, 2010 by Michael I. Bloom
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Geographic targeting is the lifeline for any business that depends on reaching consumers based on physical location. Auto dealerships, retail stores, professional sports teams — these are just a few examples of businesses that rely on geographic targeting to acquire new customers.
For these businesses, the classic direct marketing adage of "Right Offer to the Right Person at the Right Time" needs to add a fourth leg to the stool: the Right Location. Traditional offline marketing channels have been well suited for geographic targeting, but with the recent explosion of online marketing and dramatic new tracking technologies, there are now powerful channels available for geographic targeting in digital channels as well.
The best marketing program in the world will not succeed if the consumers being targeted are not located in the business "trade region." The most important starting point for any geo-marketing program is to define the trade region. In simple terms, think of this as the number of miles an interested prospect would be willing to travel to reach the business.
The best way to identify this "geographic radius" is by analyzing historical customer data to determine where the majority of current customers come from. There is typically a direct correlation between a consumer's likelihood to buy and the distance he is from a business.
So how do you reach consumers who are in the appropriate trade region? Here's an overview of four (five more in the next edition of Inside Direct Mail Weekly) traditional AND digital marketing channels available for geographic targeting to reach any consumer segment in any physical location.
1. Direct Mail
Traditionally, the most effective marketing channel for geographic targeting has been direct mail. Each consumer's physical address and their exact distance to a business is a known quantity, therefore clear radius cutoffs can easily be made.
Once these radius cutoffs are specified, direct mail campaigns can then be deployed on a "blackout" basis to all residents within the radius — or more precisely, by targeting specific segments within the radius based on demographic criteria at the city level, ZIP level, block level or household level. Statistical models can incorporate geographic distances into the algorithms and further boost performance.
2. Print Media
Newspapers and local magazines are terrific for geo-targeting because they have circulation base "footprints" which can be leveraged to reach consumers in a specific trade region. A primary challenge arises when the publisher's media footprint is not perfectly matched to the business trade region. The consequence is excessive circulation and unproductive media spending but, oftentimes, publishers will have regional sections or special bonus promotions to improve the targeting quality and cost effectiveness.
For these businesses, the classic direct marketing adage of "Right Offer to the Right Person at the Right Time" needs to add a fourth leg to the stool: the Right Location. Traditional offline marketing channels have been well suited for geographic targeting, but with the recent explosion of online marketing and dramatic new tracking technologies, there are now powerful channels available for geographic targeting in digital channels as well.
The best marketing program in the world will not succeed if the consumers being targeted are not located in the business "trade region." The most important starting point for any geo-marketing program is to define the trade region. In simple terms, think of this as the number of miles an interested prospect would be willing to travel to reach the business.
The best way to identify this "geographic radius" is by analyzing historical customer data to determine where the majority of current customers come from. There is typically a direct correlation between a consumer's likelihood to buy and the distance he is from a business.
So how do you reach consumers who are in the appropriate trade region? Here's an overview of four (five more in the next edition of Inside Direct Mail Weekly) traditional AND digital marketing channels available for geographic targeting to reach any consumer segment in any physical location.
1. Direct Mail
Traditionally, the most effective marketing channel for geographic targeting has been direct mail. Each consumer's physical address and their exact distance to a business is a known quantity, therefore clear radius cutoffs can easily be made.
Once these radius cutoffs are specified, direct mail campaigns can then be deployed on a "blackout" basis to all residents within the radius — or more precisely, by targeting specific segments within the radius based on demographic criteria at the city level, ZIP level, block level or household level. Statistical models can incorporate geographic distances into the algorithms and further boost performance.
2. Print Media
Newspapers and local magazines are terrific for geo-targeting because they have circulation base "footprints" which can be leveraged to reach consumers in a specific trade region. A primary challenge arises when the publisher's media footprint is not perfectly matched to the business trade region. The consequence is excessive circulation and unproductive media spending but, oftentimes, publishers will have regional sections or special bonus promotions to improve the targeting quality and cost effectiveness.
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