Use This Tool to Advertise Where Your Customers Are

Location targeting on Facebook allows you to talk to the people that matter


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Every business owner wants to reach as many potential customers as possible.

Where most marketing strategies fall short is in trying to reach a too broad audience, rather than individuals who will actually buy a product or service.

With location-based advertising on Facebook, brands are able to ensure that their message is reaching the right audience because they get to choose who to advertise to and where. 

According to Facebook, advertising campaigns that take location into account achieve greater engagement levels and conversion rates (customers taking action such as making a sale, doing further research about the business or spreading the word, etc.) than un-targeted ads.

Advertising with the aim of reaching a particular audience is nothing new. 

"Location targeting is incredibly common - similar to the way a small car dealership advertises on local TV. It helps small businesses find their audiences and it makes ads more relevant to people looking for local products and services online," says Facebook.

Location marketing in a nutshell

When brands run location-based advertising campaigns they're choosing to make their adverts visible to potential customers in a particular country, state/province, city and zip code.

What's also important is that businesses reach as many of those "right" people as possible. This makes Facebook with its 1.86 billion users on Facebook, the ideal platform for reaching as much of the desired audience as possible. According to the Facebook for Business website, for driving in-store sales, an ad’s reach is far more important than the engagement it receives (clicks, comments or likes).

Facebook uses the location in a users' Facebook profile, the area they check into, or the location set on their mobile phones, if enabled.

When creating an ad campaign users not only specify their location, but can also choose the type of reach they're looking to achieve, their ideal audience and budget, set either to daily or lifetime. They can also specify the objective of the campaign - whether it's to increase local awareness or to up their conversion or engagement rates.

An example of an ad campaign on Facebook. These are the results of a monthly budget to R2000 or R66 a day. 

Why it works well for SMEs

According to Facebook, location targeting is especially suited for SMEs because they can invest their advertising Rands into initiatives which have potential for returns, and for less than what they would typically spend on other mediums.  


See also: Meet the new online marketing tool for your business

 

"The forms of advertising we offer are both effective and cost-efficient. They are effective because they enable small businesses to address people with relevant messages at the time and place they will be most receptive to them," says Facebook.

For example, for a local awareness ad targeting audiences in Johannesburg, South Africa, the budget can start as low as R1.00 a day. The estimated daily reach will depend on the budget. The more a business spends, the higher their reach will be. 

Facebook also allows brands to track their progress and control their spend, making it easy for SMEs to know if the campaign is worth pursuing in the future.

"It is measurable, so you know how effective your ad is in attracting engagement from your target market, and you are in complete control over how much budget you spend in a day or month.".

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