Many of our clients, new to Location-Based marketing, initially think its only value is in targeting mobile consumers based on where they are at any given moment.  Some shy away from the notion, citing concerns of the “creep factor” and the potential to damage their brands as a result. In fact, less than a third of our clients are currently using proximity targeting.  Not that it doesn’t drive engagement and conversions, it does, if done correctly.

But Location-based marketing is much more than “near a place” targeting.

Once clients understand the strategic value of Location behavior—its ability to uncover data-driven intelligence they can’t get anywhere else, they quickly grasp its broad-reaching value.  Putting proximity targeting aside, what’s the value, and how is it created?

First, the value.  Location behavior intelligence gives marketers unprecedented insight into what consumers are interested in and passionate about, far beyond demographics, Web browsing or even searches. This adds essential, additive context across the marketing spectrum for:

• Segmentation Enhancement
• Marketing Analytics and Modeling
• Product Development Insights
• Competitive-Foot Traffic Analysis
• Loyalty Program Enhancement
• Message and Creative Personalization
• Omni-channel Targeting: Offline; Desktops; Mobile Web and yes, even Mobile Apps

Second, is how the value is created.  As mobile consumers go about their daily lives, engaging in local events and activities such as shopping, dining, attending musical events or running in 5K races, location data is anonymously gathered, and attendances verified.  Over time, lifestyle patterns emerge that identify consumers’ interests and affinities.  These result in the most highly predictive profiles and segments for use in everything listed above.

Why are location-based segments so predictive?  Because they’re built on the highest level of consumer commitment. They’re built based on consumers passionate enough to invest their personal time to physically engage in the events and activities they care about.

So, coming full circle: proximity targeting can be effective if there’s location intelligence driving the messaging and timing.  This way, consumers perceive the outreach as information, versus promotion. But when you’re looking for the strategic value of Location Based marketing, remember, that value “lies beneath.”