In the last decade, one of the most frequently used words in marketing was “personalization”. While the potential benefits deriving from it can be very large, for many companies the bar was often set too high. Fulfilling the requirements that came with choosing this path was difficult, and the ratio of efforts to the benefits obtained in this way was disproportionate in many cases.
The golden mean in most instances is good customer segmentation based on various psychographic, behavioral, demographic, or geographic variables.
In the context of geographic segmentation, relying on the user’s location, we serve them content relevant to their position. And here comes the concept of hyper-locality.
What is Hyperlocal Marketing?
Hyperlocal marketing is a focused advertising strategy aimed at reaching potential customers in a tightly specified and geographically limited area, often encompassing only a specific neighborhood, street, or even a building. This strategy is often used to attract users conducting “near me” searches on their mobile devices. The main goal is to increase traffic at the physical location of the business and boost in-store sales, targeted at a specific segment of consumers who are already nearby and are more likely to make a purchase.
The mechanism of hyperlocal marketing can be illustrated with a simple example: when someone searches for a nearby bakery, they might enter a query in Google Maps like “cafe”. If a business has optimized its online presence for local SEO, it will appear in the search results, attracting potential customers from the immediate vicinity.
The precision and local character of hyperlocal marketing make it a cost-effective strategy, minimizing the waste of resources on recipients who are not in the immediate vicinity or are less likely to interact with the business. This approach is particularly beneficial for brick-and-mortar stores and service businesses such as restaurants, hair salons, accounting offices, or car workshops that want to increase their local visibility and customer footfall.
Why is Hyperlocal Marketing So Important?
Increasing Traffic, Conversions, and Cost Efficiency
Modern consumers, in order to find nearby businesses that meet their immediate needs, most often reach for their smartphones. Digital hyperlocal marketing strategies respond to this behavior by optimizing a company’s position in local search results, making it easy for nearby consumers to find the business. One of the main goals of hyperlocal marketing is to increase traffic in physical stores and locations. By targeting offers to people who are nearby and already searching for products or services, hyperlocal marketing significantly increases the chances of converting online interactions into store visits and purchases. Moreover, focusing marketing efforts on a very specific geographic area ensures that the advertising budget is used more efficiently. Precise targeting in hyperlocal marketing often leads to a better return on investment compared to marketing strategies aimed at a broader audience.
Data Analysis and Continuous Improvement of Consumer Experiences
Hyperlocal marketing allows companies to collect and analyze data regarding local consumer behaviors, preferences, and responses to marketing campaigns, which over time can be invaluable in refining marketing strategies. The insight gained through hyperlocal marketing strategies can help businesses quickly adapt to local market trends and consumer preferences, which is crucial for staying competitive. Tailoring marketing messages and offers to local events, seasons, or consumer preferences enables the delivery of a more personalized and relevant customer experience, which in turn can lead to higher levels of satisfaction and loyalty. In competitive local markets, a strong hyperlocal marketing strategy can provide a significant advantage. Standing out in search results narrowed down to a specific location and cementing a business in the minds of nearby consumers can significantly increase market share.
Center AI enables the analysis of the positioning of individual stores in local search results for various phrases, monitoring the number of listings views in Google Maps, and tracking user actions such as navigation starts, website visits, or phone calls to a given location.
Additionally, by utilizing artificial intelligence, it allows for the proper categorization of reviews and determination of sentiment, enabling a much deeper understanding of customers while simultaneously saving time.
Practices Used in Hyperlocal Marketing
Hyperlocal marketing combines modern digital solutions with traditional marketing methods, enabling businesses to effectively reach local customers both online and offline. The use of digital tools allows for precise targeting of offers, while traditional methods help build strong relationships with the local community. Depending on the preferences and capabilities of a given company, hyperlocal marketing offers a wide range of tactics and methods tailored to the individual needs of each business, enabling increased visibility and sales in the local market. Below are some example strategies used in hyperlocal marketing.
Listings in Google Maps
Also known as a Google Business Profile, these are a fundamental tool in the strategy of hyperlocal marketing. They allow businesses to present essential information about their business, such as name, address, opening hours, as well as photos and customer reviews, directly in Google search results. Optimizing a Google listing is key, as it helps increase visibility in local search results, which is especially important for consumers looking for services or products nearby. Additionally, Google listings enable interaction with customers through the reviews section and the posting of marketing messages and current offers.
Hyperlocal Content Marketing
Creating locally-focused content helps businesses connect with the local community. This can include blogs about local events, social issues, or interviews with local personalities. Businesses can also develop guides to local attractions or review local restaurants. In this way, companies can demonstrate their commitment to the local community while increasing their online visibility and improving their position in local search results. The Hyperlocal Content Marketing has been comprehensively described in this article.
Social Media Marketing
Social media is a powerful tool for hyperlocal marketing. Businesses can use local hashtags, geotag their posts, and promote local events and special offers. The ability to interact with local customers through comments and shares can also increase community engagement and customer loyalty.
Sponsoring Local Events
Supporting and participating in local events such as festivals, sports tournaments, or fairs can significantly increase brand recognition within the local community. Businesses can offer their products or services as prizes or simply give out samples to attract local customers.
Hosting Events
Organizing events directly at or near the company’s premises, such as workshops, open days, or special promotions, can attract local customers. Such events promote the brand among customers and increase the local community’s awareness of the products or services.
Collaboration with Local Businesses
Collaborating with other local businesses by organizing joint offers or events can be beneficial for both parties, especially when it comes to complementary goods. For example, a joint promotion between a tire store and a friendly nearby auto workshop could be that customers who purchase tires at the store receive a discount on their installation. Such cooperation allows both companies to exchange customers from the same segment, positively affecting increased traffic in both locations.
Engaging the Local Community
Engaging the local community, for instance by participating in local social events or organizing charitable activities, will positively translate into building strong relationships with local residents and increasing loyalty towards the brand.
Promotions for the Local Customers
Offering special discounts or promotions to local residents can encourage them to visit a particular business. This may include discounts for members of the local community or special offers during local events.
Geofencing
Geofencing allows setting up virtual boundaries around a specific geographic area and sending personalized messages or offers (usually through push notifications in a proprietary or partner mobile app) to users when they enter or leave that area. This is a particularly effective way to reach local customers with real-time offers.
Loyalty Programs
Loyalty programs, which offer discounts or rewards for repeat purchases, can encourage local customers to visit the business more frequently. The ability to accumulate points or take advantage of exclusive offers increases customer loyalty.
Local Landing Pages
Creating local landing pages, optimized for keywords and containing contact information, can significantly increase a company’s visibility in local search results, impacting the increase in the number of local leads and conversions.
Paid Campaigns
Local advertising is a very effective and one of the most commonly used tactics in hyperlocal marketing. The ability to target ads to specific geographic areas or consumers in close proximity to a business allows for effective delivery of offers to the local community. Advertising platforms, such as Google Ads or Facebook Ads, offer advanced tools, enabling businesses to promote their offers among local consumers in real time. As a result, local ads can contribute to increasing foot traffic in brick-and-mortar stores and enhancing brand recognition in the local community.
Examples of Hyperlocal Marketing Application
Taj Mahal Tea
An excellent example of hyperlocal marketing is the advertising billboard named “Megh Santoor” placed at Vijayawada Railway Station, strategically unveiled just before the monsoon season running from June to September. During the rain, the billboard plays ‘Raag Megh Malhar’, a classic Indian melody traditionally associated with the monsoon season. The billboard gained additional fame by setting the Guinness World Record for the “Largest Interactive Environmental Billboard,” covering an area of 209 square meters. The initiative was directed by the advertising agency Ogilvy India and represents an outstanding example of a hyperlocal marketing strategy. The mix of regional music, timely introduction and removal of the billboard, which was taken down right after the end of the monsoon, combined with the roots of Taj Mahal Tea, related to the location of the billboard, made this campaign unique and resonant with the local community.
Glossier
In 2019, the global brand Glossier demonstrated excellent use of hyperlocal marketing strategies related to the opening of a pop-up store in the Seaport district of Boston. To promote this retail point, Glossier implemented various hyperlocal marketing tactics that were targeted at local consumers, with the intention of attracting a precisely defined audience – Boston residents who could visit Seaport. An Instagram post was shared three days after the New England Patriots triumphed in Super Bowl LIII. The scene for the photograph was a local public transport station, located near the temporary Glossier store. This image captured the Super Bowl celebration atmosphere while also featuring a Glossier product advertisement at the mentioned station. The Glossier marketing team recognized a valuable opportunity to increase local interest by presenting their advertisement in the context of a significant local event and showcasing interactions of the local community with the brand.
Kubota Tractor Corporation
The collaboration between Kubota Tractor Corporation, a manufacturer of heavy agricultural equipment, and the marketing agency Goodway Group is an excellent example of a hyperlocal advertising campaign. For each of the 400 Kubota dealers, Goodway created a personalized campaign tailored to the specific business needs of their market. Hyperlocal targeting is crucial, as each dealership can only direct its efforts towards postal codes assigned by the corporation. The Goodway team created over 50 specific ad groups for this dealer in Mississippi, each with responsive search ads and hundreds of relevant keywords, both broad and exact, uniquely tailored to the local business.
Results within one year:
157% increase in conversions
63% improvement in CPA (Cost Per Acquisition)
159% increase in CTR (Click-Through Rate)
28% decrease in CPC (Cost Per Click)
Nike
The “Nothing Beats a Londoner” campaign executed by Nike is a prime example of hyperlocal marketing aimed at young, ambitious athletes in London. The centerpiece of the campaign, a video, showcased young athletes’ competition against the backdrop of iconic London neighborhoods such as Dalston, Peckham, and Brixton. An interesting aspect of the campaign was the involvement of young London athletes in its promotion through social media, where each received a segment in which they appeared. These elements were parts of the entire video and were shared by the athletes on Instagram, where they linked to the next campaign participant, creating a kind of networked competition. The initiative gained notoriety thanks to reinforcement by well-known personalities and won numerous prestigious awards in the advertising industry. After its premiere, interest in Nike products in London alone increased by 93%, and by an average of 54% in other parts of the UK. This campaign highlights how hyperlocal marketing can increase brand interest in a local market and gain broader recognition by promoting the local community and culture.
As evident, hyperlocal marketing is relevant for both small local businesses and large retail or service chains, which, although “global”, must always operate locally. Many of the tactics described above can be utilized even with a small marketing budget, relying largely on creativity, making it an effective tool for any company, regardless of the size of its marketing budget.
