Proximity Marketing: Benefits It Brings to Your Business

What is Proximity Marketing?


Proximity Marketing or location-based marketing is the localized wireless distribution of advertising content based on beacon technology and associated with a definite venue. Notifications can be received by any person in the particular location with the help of an application installed or without any app on a mobile device or a tablet. In other words, your ads will be delivered to the right person and in the right time.


You will be able to communicate with your clients offline and bring a new customer experience to fulfill their sophisticated needs. Manage proximity marketing campaigns and engage your clients by sending discounts, coupons and season specials.


Proximity Marketing Benefits for Your Business


Location-based marketing brings numerous bonuses to your business:


  • Fast, easy and cost effective to deploy
  • Grow visitor-to-customer conversion rates
  • Engage customers and grow loyalty
  • Enhance client experience
  • Get unique advertising offline tool
  • Boost offline-to-online conversions
  • Use the power of personalization for the perfect customer journey
  • Analyze your marketing campaigns and make improvements on every stage of your offline marketing campaign


Use Cases and Statistics


So now when we found out proximity marketing value and benefits, let’s come to practical use cases and statistics. Beacon technology is already used by some of North America’s top retailers, including Macy’s, Target, Urban Outfitters, and CVS. Its continual rise in popularity is expected to help reinventing new marketing approaches, offering customizable shopping experiences to customers that can’t be replicated online.


In 2015, Macy had and installation of about 4000 beacons and it was the biggest installation. After that, in a year, in 2016, Rite Aid – a pharmacy retailer – beat Macy’s record by deploying beacon technology at more than 4,500 of its U.S. stores. It helped big retailer chains almost to double clients involvements and to increase overall profit.


For every service-oriented business targeting is especially crucial. Ads must be sharpened on several levels by demographic, geographic location, channels used and more. To serve these businesses, location-based advertising (LBA) has emerged. Proximity marketing or location-based advertising helps to become more efficient to different spheres of services, such as restaurants, retail stores and hotels by combining mobile advertising with geo-targeting technology.


According to BIA Kelsey research, the success of this new brand of advertising justifies the rate at which the LBA industry is growing. Almost $30 billion is expected to pour into the industry by 2020, a 24.6% annual growth rate from 2015’s $9.8 billion.

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