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What is Hyperlocal Marketing?

What is Hyperlocal Marketing?
Maria Martin

12 min

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What is Hyperlocal Marketing?

"hyperlocal marketing" refers to advertising targeting specific geographic regions. Retailers often use this type of advertising to reach potential customers within a certain radius of their store. For example, a restaurant might target people within one mile of their location.

While many marketers use hyperlocal marketing to attract new customers, others focus on existing customers. They might want to encourage repeat visits to their locations, or they could be trying to increase foot traffic to their brick-and-mortar storefronts. Either way, hyperlocal marketing works because it allows companies to connect with consumers based on their physical proximity.

In addition to targeting specific geographic areas, hyperlocal marketing offers several advantages over traditional forms of advertising:

  1. It provides a better understanding of consumer behavior. By knowing where someone lives, shops, works, or plays, brands can tailor their messaging accordingly.
  2. It helps companies build stronger customer relationships. When consumers interact with a brand in person, they feel like they know the brand personally.
  3. It gives businesses access to information about their customers that they wouldn't otherwise have. For instance, a retailer might collect data about the types of products that shoppers buy or whether they prefer to shop online or in person.
  4. Hyperlocal marketing lets companies make smarter decisions. If a customer buys something online, for example, they might be interested in buying another product from that vendor. Hyperlocal marketing makes it easy for companies to track cross-selling opportunities.
  5. Hyperlocal marketing is cost-effective.

Because it focuses on a small region, it doesn't require expensive broadcast media such as TV commercials or radio spots. Instead, it relies on digital channels such as mobile apps and websites.

What Is Hyperlocal Marketing?

Hyperlocal marketing is where businesses target potential customers based on their proximity to them. This is done via mobile devices like smartphones and tablets. We often use our phones to find local restaurants, bars, coffee shops, etc., but what happens when we want something else? Let's say we're looking for a copybook. We could go to a nearby bookstore, but you might sell it out. Or we need to know exactly what we want, so we look up information online. But how does that work?

We start typing "copybooks" into our smartphone search bar. Our phone knows we're close enough to the store to make a purchase, so it suggests several stores near us. One of those suggestions is a small shop called Bookstore X. They sell books but are located in a different part of town. So now we have another option.

Why Launch a Hyperlocal Marketing Campaign?

Hyperlocal marketing campaigns are designed to target specific geographic areas and capture the attention of customers searching for nearby businesses. They typically use location-based keywords like "near me," "nearest," or "locally." These campaigns are often used to drive foot traffic to brick-and-mortar stores, but they can also help online retailers attract new customers.

In addition to driving foot traffic, hyperlocal marketing campaigns can provide additional value to consumers by providing information about products and services. For example, a retailer could offer discounts based on proximity to a customer's home address.

While many companies have launched hyperlocal marketing campaigns in the past, there are several reasons why it makes sense to launch one today. Here are three key benefits of launching a hyperlocal campaign:

  1. Targeting Local Searches: Near-me searches are becoming increasingly important to people's daily lives. As mobile devices continue to improve, users can access information about local businesses without pulling out their phones or tablets. This trend is expected to accelerate in 2016.
  2. Capturing Nearby Customers: People are increasingly using smartphones to make purchases, especially in retail settings. If you want to reach potential customers while they're in your store, you'll need to start thinking about ways to leverage near-me searches.
  3. Increasing Revenue Potential: The average person spends $200 per month on goods and services within five miles of their home. While most people don't spend much money outside their neighborhoods, those who live close enough to shop locally tend to spend more overall.

What Ranking Signals Matter for Hyperlocal Marketing?

Hyperlocal search results are often the most competitive because you are competing against local businesses within a small area. In addition to being highly relevant, hyperlocal rankings must include strong signals that indicate trustworthiness and authority. Here are some of the most important ranking signals for hyperlocal search results:

  1. Local Knowledge - Local knowledge is one of hyperlocal search results' most important ranking factors. You need to live near a location to rank well for queries related to that place. For example, if you're trying to rank for "restaurants near me," you'll want to ensure you've lived nearby for a while. Consider getting a job to build up your credibility.
  2. Relevance - If you're trying to rank high for "restaurant reviews near me," you'll need to provide detailed information about why people should choose your restaurant over others. This includes providing photos, videos, menus, and customer feedback.
  3. Trustworthy Links - Links from reputable sources are another way to boost your reputation and improve your chances of ranking well. These links come from sites like Yelp, TripAdvisor, Foursquare, Facebook, Twitter, and YouTube. They help establish your brand and give potential customers confidence in your expertise.

A Comprehensive Google My Business Listing

Google My Business is where Google sources much of the information it serves up in local search results and Google Maps results. These include details in listings of individual businesses, including opening hours and address, along with the cool little Knowledge Graph style data points like when a business is busiest and what type of food they serve.

Suppose your site proposes third-party services such as reservations via OpenTable or menu listings through a single platform. In that case, this information will also display here, as you can tell from the listing for South End Buttery, a delightful cafe just outside our office:

For more tips on optimizing a Google My Business listing for maximum impact, check out my guide on Google Maps Marketing.

Customer Reviews

Small business owners often know how effective word-of-mouth marketing can be. But when it comes to hyperlocal advertising, reviews and customer testimonial videos can be among the most powerful tools at your disposal. And think about the last time you looked for a local business. You followed up your initial search by reading the reviews. You probably even checked out the customer testimonials.

Well, if you check out those reviews before deciding where to spend your money, you can be sure your customers are doing exactly what you're doing — searching for the best deals around town. In fact, according to research conducted by Yelp, 88% of consumers read online reviews before choosing a local business. So why aren't you capitalizing on this trend?

Distance

Is Not A Ranking Signal In Local Search - But Proximity Can Be

We've always known that proximity matters in local search rankings. We know that Google favors nearby businesses over those farther away. And we know that Google favors businesses that provide better customer service.

But what about "distance"? Does distance matter?

In our recent study, distance plays a role in local search rankings, but it's less important than many assume.

Distance doesn't matter much because Google often serves up results in clusters rather than serving each business separately. This is especially true for smaller businesses.

For example, there are three restaurants within five miles of my home. If I'm searching for pizza, Google might show me the closest restaurant first, the second closest, and finally, the third closest.

This makes sense. After all, if I want pizza, I probably don't care whether the pizzeria across town offers better customer service than the one down the street. Similarly, if I'm looking for a specific type of pizza, like gluten-free, I'll likely go straight to the nearest place regardless of how far away it is.

So while distance certainly plays a part in local search rankings, it's less significant than people think.

How to Set Up a Hyperlocal Marketing Campaign?

Hyperlocal marketing is about targeting your audience based on where they live. This means you want to limit your ad campaigns to a very small geographic region. You do this by setting up your campaign to target a certain city, state, or zip code. But how do you know what those settings are? Let's look at some different ways you can set up your location targeting.

Geo-Targeting Settings

The first thing you'll want to do is choose a geo-targeting option. There are three main options:

  • City
  • State/Province
  • Zip Code

You can use one or multiple locations. If you select City, it will automatically include the state and province. If you want to specify a particular city, you can add it to the list. For example, if you wanted to target New York City, you could enter "New York." However, it defaults to California if you don't specify a state.

Hyperlocal Marketing in Google Ads

To start, let's talk about what hyperlocal marketing is. Hyperlocal marketing is local advertising. In other words, advertising targets people based on where they live. This includes real estate ads, billboards, radio spots, TV commercials, etc.

To set up hyperlocal campaigns, you must first configure your geolocation settings. You can do this by navigating to the Campaigns tab in your Google Ads account, selecting the campaign you want to edit, clicking "Settings," and then choosing "Locations."

You'll see a dropdown menu called "Radius targeting." Clicking on this will open a window showing you three options:

  1. Central Point. This option allows you to choose the center of your radius. For example, if you wanted to target people within 10 miles of your office, you could place the center of your radius at the address of your office.
  2. Radius. This option allows you to specify how far from the center of your radius people must be to show up in your ad. For example, if your radius is 5 miles, anyone who lives anywhere within 5 miles of the center of your radius will show up in your ad, regardless of whether they live near your office.
  3. Custom Location. You can enter a custom location into this field if you need to know exactly where you want to advertise. Once you've entered a location, you can edit the campaign later.

Now that you've chosen your setting, you can start configuring your ads. First, you'll want to add a callout box to each ad copy. These boxes contain information such as the name of your business, phone number, hours of operation, etc. They also allow you to include images, videos, and text inside the box.

Hyperlocal Marketing in Facebook Ads

HyLoSo refers to local marketing done via social media channels such as Facebook. In recent years, marketers have begun to use social media platforms to reach customers within specific geographical areas. This type of advertising is often referred to as "hyperlocal."

There are few hard and fast guidelines regarding running a successful campaign, but there are some basic steps you can take to ensure that your ad reaches the right audience.

First, determine what it is that you want to sell. Do you offer products or services related to real estate? Are you selling tickets to a concert? If you're trying to promote a restaurant, ensure that your location is accurate. You don't want to advertise your store in another city because people will need to know where to find you.

Next, decide whether you want to target potential buyers based on demographics or interests. For example, you might target men ages 25 to 35 living near a certain zip code. You may want to target women ages 30 to 45 who live near a particular school district.

Once you've determined your target market, start building your list of interested individuals. Start by creating a profile for each person on your list. Include information about yourself, including your name, email address, phone number, and physical address. Then, include relevant keywords in the description section of your posts.

Finally, set up your budget. How much money do you want to spend per day, week, month, or year? Be realistic and think about how many impressions you'll receive in total. Also, consider your conversion rates; if you're spending $5 per impression, you probably will see little return unless you convert 10% of those visitors into leads.

Local Awareness Ads

Facebook's Local Awareness ads were designed to help small businesses promote themselves locally. These ads allow people to find out where a business is located, even if it isn't listed on Facebook Pages. They're perfect for attracting potential customers within a specific geographic area.

The Local Awareness ad format was introduced on April 24th, 2014, and since then, many small businesses have been able to take advantage of this feature. To begin promoting your business with Local Awareness ads, select this ad format from the options available in the Ads Create tool. Then, enter the address of your store/business into the text box. You don't need to include the city name; enter the street address. If you want to add additional information about your business, such as hours of operation, phone number, etc., you can do so here too. Finally, please choose whether you'd like to show the map of the coverage area around your business or hide it altogether.

Local Insights

Hyperlocal advertising is becoming increasingly popular among businesses looking to reach customers in their immediate vicinity. But there's no denying that it's a challenge to target audiences based on location effectively. To help local advertisers better understand where their audience lives, Facebook recently introduced Local Insights.

The tool lets marketers view detailed statistics about their campaigns' performance across different areas. For example, a restaurant owner could use the data to determine whether her ad reaches the right people in the correct locations.

Local Insights provides insights into three key metrics: impressions, CTR, and conversions. Advertisers can access the reports from the Page Insights section of their Ads Manager dashboard.

In addition to providing insight into each metric individually, Local Insights also lets us compare the performance of multiple campaigns over specific periods. By setting the date range to one week, we can see how many times our ad ran during that period. A similar comparison can be made for one month or one quarter.

We can also select a radius around our campaign's current location to generate a baseline report. In the example above, I selected a radius of 50 meters, indicating that my campaign reached people within a 50-meter radius of my store.

Refining Audience Segmentation by Location

Our final tip for creating hyper-local campaigns in Facebook ads concerns Facebook's very granular targeting options - especially those relating to location.

We're running a hyper-local campaign using the Store visits campaign objective. We want to target individuals within a certain distance of our store so we will use company location targeting. This permits us to target custom audience segments close to our target location. We can enter the address of our site manually or drop a pin on the map to get begun. From here, we can begin tweaking our settings.

Refining Audience Segmentation by Individual

Once you establish the initial audience segmentation strategy, refining it over time is important. As your business grows, you might find that certain groups need to perform as expected, or you might discover new opportunities to reach different audiences. To do that, you'll need to adjust your audience segmentation approach.

Facebook allows marketers to refine audience segments based on individual attributes like age, gender, interests, education level, job role, etc. You can use this feature to identify potential gaps in your current audience segmentation strategy, such as identifying the best way to reach young male consumers in your local market.

You can also leverage Facebook's "People Who Live Near Me" tool to help you identify new audiences. For example, if you run a restaurant, look at the list of people who live near your restaurant to see whether there are any new demographics you still need to consider. Or you could analyze the types of posts your fans are sharing about your restaurant to learn what topics resonate with your audience.

The bottom line

Hyperlocal marketing is one of the most effective forms of advertising because it targets consumers interested in what you sell. This type of marketing allows you to reach potential customers where they live, work, shop, eat, play, etc., and build relationships with people who already know you.

By targeting a specific area, you can increase your chances of getting noticed by potential customers. You can also run ads that target a small geographic location, which helps to boost foot traffic to a location, as well as improves the visibility of the brand itself.

One of the best things about hyperlocal marketing is that you don't have to spend much money to achieve success. If you can find a way to make a few extra dollars per month, you can invest that into hyperlocal marketing and still see great returns.

Hyperlocal marketing takes a lot of time but little time to set up. Instead, you can focus on building relationships with people who already care about you and your products/services.

Updated

November 22, 2022

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