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What is hyperlocal marketing? Its pros and cons

4 min read
hyperlocal marketing

Hyperlocal marketing is the marketing procedure that concentrates on tight geographic locations. That is to say, through hyperlocal marketing, advertisers focus on branding activities to a select few people. Through this strategy, brands narrowcast their products to people in and around their usual dwelling places. For instance, hyperlocal marketing is carried out at homes, at work, at the local stores in their neighborhoods, etc. So, through hyperlocal marketing, advertisers focus their brand on prospective customers selectively in a specific geographic area.

Hyperlocal advertising is the most effective when people indulge in ‘near me’ searches on the internet. Therefore, people in nearby blocks or streets get targeted through this kind of media branding. For instance, if you have ever searched the internet for a specific service around your area, then you have successfully engaged in a hyperlocal search.

Why invest in hyperlocal marketing?

Hyperlocal marketing produces immediate results. People usually conduct ‘near me’ searches with the intent of buying a product or spending money. Also, these searches have been gaining popularity for the last few years. A Google study shows that the frequency of ‘near me’ searches grew by 130% between 2014 and 2015 alone! Additionally, people now prefer the search engines to automatically generate results showing their nearby locations to their searches. That is to say, hyperlocal searching has been only gaining momentum for the last 5 to 6 years. Therefore, hyperlocal marketing taps on to the strong commercial intent of people.

So, hyperlocal marketing fulfills the marketing objective of driving foot traffic to the nearby retail outlets.

The pros of hyperlocal Advertising:

Because of the seismic shift in customer demands, the search technology has been modifying to include real-time geotargeting. Therefore, by default, people are getting directed to their nearest services and locations. As a result, brands are increasingly depending on this technology to increase leverage.

There are several advantages of hyperlocal marketing like:

  1. Instant brand awareness: Hyperlocal ads brings your brand instant fame. If your brand features on the top of the Google ads or search results, people will inevitably take notice. Other than the online marketing options, RWA branding, IT Park branding, branding on local shops, etc. have the same impact on people. Often branding in the nearby malls also falls under hyperlocal marketing.
  2. Rapid generation of consumer base: Hyperlocal advertising has a way to get through to people. Whenever there is a new brand on the block, most people are eager to check it out. As a result, there is almost an immediate generation of a consumer base. Hyperlocal advertising further strengthens the reach of your brand and makes sure that people take an active interest. So, through hyperlocal marketing, you can pave the way for winning potential customers quite early on.
  3. Immediate media attention: The media loves new brands. They love to feature new brands and thus help in creating a massive brand buzz. In this age of social media, it does not take long for a brand to be popular. The popularity influences, even more, media coverage by journalists. This loop results in building brand credibility and awareness.

The cons of hyperlocal marketing:

Not everything is all pleasant for hyperlocal branding. The media type has its fair share of disadvantages too.

  1. Business longevity: It is clear till now that hyperlocal marketing is not feasible in the long haul. It is an effective strategy but only for generating instant customer response. Often short-time gimmicks are not remembered by people which seriously jeopardizes the sustainability of the brand. Therefore, hyperlocal marketing fails to ensure long-term brand loyalty.
  2. Doubtful profit margin: To make a brand an overnight success, people often spend thousands and millions of dollars. However, without a proper business model, your brand can only go so far. When so much money is at stake for brand advertisement, advertisers should really look hard at its feasibility. For instance, what is the response among people? Are the people eager to buy your products? Is there even a small profit margin incurred from the sales of the product? It is true that hyperlocal marketing will make your brand popular overnight. But only through a proper advertising campaign, you can make your brand thrive.
  3. No protection from market upheavals: If your brand does not have anything unique to offer then it might get lost in the competition. So, while hyperlocal marketing might sensationalize your brand for a few weeks or months, it does not screen your brand from oblivion. It often happens that other brands can perfectly copy your brand offering and can produce it to the people in better packaging. Therefore, if your brand is not something that is extremely tough to imitate, hyperlocal marketing is not just the right thing for you. Instead, your business model should include building long-term brand loyalty among customers.

So, weigh the pros and cons before investing in hyperlocal advertising for your brand.

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