What is geo-targeting and how can it help me?

Drive store traffic with geo-targeting

Online marketing lets you broadcast messages to millions of customers. Mobile marketing adds urgency to the equation by letting you reach shoppers via devices in the palms of their hands. But what if you could tailor your mobile messages to a consumer’s exact location at any given moment? You can – with geo-targeting.

Today’s mobile devices use GPS technology to determine the exact latitude and longitude of a consumer in real time. Marketers can then harness this data and leverage it to deliver targeted, highly specific, and time-sensitive offers designed to help drive foot traffic to stores.

The results can be impressive. Regional department store Gordmans saw the click-through rates on its Facebook ads increase by 200% when it started including city names.1 The Hauser-Ross Eye Institute & Surgicenter in Sycamore, Illinois, recently brought in 333% more revenue simply by geo-targeting its keywords.2 The numbers support similar results across industries and locales: According to Victor Wong, chief executive office of the ad-targeting company PaperG, dynamically localized and optimized ads have 70% higher click-through rates than similar generic ads.1

Start by geo-fencing

How can you start incorporating location data into your campaigns? PayPal Media Network recommends creating "geo-fenced" mobile campaigns, serving offers only within specified areas – most important, those areas around your store locations.

Don’t forget to:

  • Geo-fence other relevant points of interest (POIs). Where else does your target audience go – and shop? PayPal has more than 15 million POIs in our targeting database. Selling sports apparel? Try geo-fencing a local gym or stadium.
  • Use location data within each message. PayPal Media Network lets you dynamically populate the distance to your closest retail location within a mobile ad: "Shop now for Father’s Day – DIY Tools - only 0.5 miles away."
  • Combine geo-fencing with other parameters for enhanced targeting. For example, you could use weather data to offer special deals on ice cream when the temperature rises above a certain threshold. And you can dynamically include local data such as temperature in the ad creative: "Hey Boston, it’s 94 degrees. Cool down with a $2 double scoop! Steve's Famous Scoop is only 0.2 miles away!"

Want to take it a step further? Further localize your mobile campaigns with dynamically updated product inventory data, giving customers real-time info on in-store availability. PayPal Media Network has partnered with Milo, a fellow eBay company, to make this possible.

Track your results

So, how can you know whether a customer walking through your door found out about your business through geo-targeting advertising , a TV or radio ad, a print ad, or word of mouth? Measure your campaign results by building “click-to-map” and “click-to-call” functionality into your landing pages. PayPal Media Network tracks these indicators of purchase intent, giving you an idea of how many message recipients likely visited your stores. In addition, if you’ve promoted a specific offer in your geo-fenced mobile campaign, the redemption rates for that offer can provide valuable feedback.

Partner with PayPal

Geo-targeted ads can help you lure nearby shoppers. Optimize the relevancy and conversion of your mobile campaigns. And use targeted offers to help drive customer acquisition, increase frequency, and boost per-visit spend.

To learn more, check out the PayPal Media Network for multimedia solutions designed to increase awareness and help drive consumer transactions for retailers, manufacturers, and restaurants. You can also email or call PayPal Media Network at (866) 649-4373 for more information.

  • 1 O'Malley, Gavin. "Localized Creative Improves Click-Through Rates, Engagement," Online Media Daily, March 26, 2012.
  • 2 Sutton, Adam. "Local SEO: How geotargeting keywords brought 333% more revenue," MarketingSherpa case study, April 19, 2012.

Want to know more? Contact your PayPal Account Executive or email us.