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Hyperlocal Marketing for Retailers: What It Is and How It Works

Why is hyperlocal marketing so important for retailers? Changes in consumer behavior have highlighted the need for being hyperlocal. According to Google, over the past year the search term “available near me” has grown more than 100% around the world. This marketing strategy is focused on bringing nearby consumers to the retailer’s physical stores. As its name shows, this type of campaign focuses its efforts on a precise area and target audience.

What is a hyperlocal campaign?

The objective of a hyperlocal campaign is to reach nearby shoppers in a particular area and convert them into store visitors. You do so by reaching your target audience through personalized ads distributed on Google and Facebook platforms. These personalized ads are continuously optimized to ensure the effectiveness of the campaign.

Retailers can decide to target shoppers that are near one selected store or using store clusters. By doing so, the targeting is unique to the retailer’s needs. This permits the retailer to measure their ROI store by store.

Why is hyperlocal targeting powerful?

Implementing a hyperlocal campaign will let you target a hypersegmented audience. This means the audience you are targeting is a very specific audience, based on their online and offline behavior.

The audience you are targeting in a hyperlocal campaign is highly qualified. These are consumers that are planning their shopping and have a high purchase intent. Some of these consumers may be interested in your competitor’s products or services. Targeting them with your products and offers is a smart way of capturing an already interested consumer. In a hyperlocal campaign, retailers target active shoppers near their stores. Through geotracking technology, retailers can detect when shoppers approach a store and when they are inside the store.

How to create hyperlocal advertising

The ads used in a hyperlocal campaign are personalized to fit the consumer’s needs. Hyperlocal advertising strategically shows consumers ads of stores in their vicinity relevant to them. A benefit of hyperlocal campaigns is that ad creation is automated. Using the retailer’s content such as their digital catalogs, thousands of ads can be created with their best offers and products.

These ads are automatically created in formats that are adapted for Facebook and Google platforms and personalised with each store’s location. Hyperlocal ads can save the retailer time through automation and increase their ROAS through machine learning. Through machine learning, ad performance is analysed, so the best performing ads are shown. Campaign optimisation is also done by allocating the retailer’s budget to the most effective channels, reducing costs.

Why should retailers invest in a hyperlocal marketing strategy?

One of the most important advantages of implementing a hyperlocal marketing strategy is that retailers obtain quality leads. They are considered quality leads because they already have purchase intent and are searching for products and discounts the retailer offers. Therefore, the consumers that are brought to the retailer’s stores are ready to buy.

Another advantage is that the retailer can set the catchment area of their preference and optimize the hyperlocal ads store by store. This is helpful because ads that may work in a specific area may not be as effective in another.

Finally, the performance of the hyperlocal campaign can be measured store by store, gathering KPIs for each specific store. This makes the campaign easier to optimize and can be done in real-time. Hyperlocal campaigns are an effective way to drive more traffic to your stores by delivering relevant messages to your target audience at the right moment of their shopping journey. They can also increase brand awareness and increase customer loyalty by conveying personalized messages and connecting with local consumers.