A “Random Walk” Among Geo-Fences
by: Dick OHare, on Sep 11, 2013 in Market Musings
The term “hyperlocal” marketing has rapidly become synonymous with mobile-centric, location-based marketing. Discussion about “mobile” and “data” have dominated the digital advertising industry content air waves, as these two marketing segments have continued to grow ad spend. Terms like “big data”, “signals” and “geo-fencing” have grown in popularity as marketers work at factoring location into the marketing mix. All from the perspective of attempting to time and capture consumer attention at the precise moment they pass a retail location.
There is certainly novelty to this. And, I would assume this novelty level may even factor into some early results marketers are seeing.
However, I would equate this approach with trying to time the stock market. Any investment manager weaned on traditional investment principles would sight the perils of market timing.
The random walk theory to investing has shown that you are more likely to hit the timing of the market randomly than strategically. As a result, investment managers preach a diversified, consistent approach to investing so you catch the market when it is going up and minimizing the risk (through diversification) on the way down. This delivers the best long term results.
I would offer Local Yokel Media’s approach to hyperlocal marketing as a similar consistent, diversified approach to hyperlocal marketing.
Our unique perspective is to reach audiences where they live…ie., within close proximity to a retail location. And, where they live is a stable, consistent location. We reach these audiences through the local content they know and trust that write about their communities. In other words, we reach them in authentic environments when they are most receptive (from the positive results we are seeing) to local ad messaging.
This approach eliminates the inaccuracy of ip-based geo-targeting and the “dirty” signals that give waste to geo-fencing. We can achieve this consistently and diversely. We call this geo-contextual relevance. Put simply, it works. It is a great opportunity for marketers to take a more consistent approach to build their value (ie., brand) to audiences right around the corner from their locations…not trying to time their message to consumers walking by their locations.
We are building a scalable hyperlocal distribution channel that gives local marketers the ability to efficiently build their brands with the local audiences near them…consistently, diversely over time.