Using Geolocation Data to Fuel Paid Digital Advertising

Originally published in 2021, this article has been updated to reflect the latest developments in geolocation technology, data privacy, and location-based advertising strategies.

As conversations around consumer data, privacy, and tracking continue to evolve, one thing remains clear: relevance matters. Consumers want experiences that feel useful, not intrusive, and advertisers need to be more thoughtful about how they collect and use data.

We’ve all probably experienced the frustration of being served an ad that has no relevance to our interests or needs. Not only does this create a poor customer experience, but on the advertiser’s side, it can mean wasting precious paid digital advertising dollars.

So, how can advertisers use data in a mutually beneficial way, improving the customer experience while making more efficient use of their ad spend?

Geolocation data is one place to start.

What Is Geolocation Data?

In simplest terms, geolocation data refers to information used to determine the geographical location of a device, such as a smartphone, laptop, or tablet. This information can come from several sources, including GPS, Wi-Fi networks, cell towers, and IP addresses.

Depending on the source, available permissions, and technology being used, geolocation data can provide anything from a general geographic area to a more precise device location. For advertisers, location signals generally fall into two categories:

Real-Time Geolocation Data

GPS, Wi-Fi, and cellular networks can help determine a device’s current location. When consumers enable the appropriate location permissions, supported apps and services may use these signals to provide location-based experiences.

For advertisers, this can create opportunities to reach relevant audiences based on where they are, such as consumers shopping near a retail location or exploring a popular tourist destination.

However, accuracy varies by device, environment, and signal availability. And having access to location information doesn’t automatically mean it can be used for advertising. That depends on consumer permissions, applicable privacy requirements, and the advertising platform.

Approximate Geolocation Data

IP addresses can also provide information about a device’s general geographic location, often at the country, region, or city level. Unlike GPS-based data, IP geolocation generally cannot identify a precise physical location. Accuracy varies depending on the network, internet provider, and factors such as VPN usage.

While this data may not be suitable for targeting an individual storefront, it can still be valuable for advertisers looking to reach audiences across broader geographic areas.

How Does Geolocation Data Help Target Consumers?

Consumers move between locations throughout their day, whether they’re commuting to work, visiting a grocery store, heading to dinner, or traveling somewhere new.

For advertisers, understanding location can provide valuable context about which products, services, or experiences might be relevant to an audience.

When used responsibly, geolocation data can support more geographically relevant advertising, helping brands reach consumers where their products and services are available.

Two approaches advertisers can consider are geofencing and historical mobile location targeting.

Geofencing: Target Users in a Specific Area

Geofencing allows advertisers to define a geographic area around a particular location, such as a store, restaurant, stadium, or event venue. Depending on the advertising platform and available location signals, eligible devices within that area may be reached with relevant advertising.

For example, a restaurant might promote its lunch specials to consumers in the surrounding neighborhood, while a retailer could advertise a weekend promotion to nearby shoppers.

The size of the target area matters, too. A radius that’s too narrow may limit reach, while one that’s too broad can include consumers who are unlikely to visit.

Ultimately, the goal is to find the right balance between geographic relevance and audience scale. And there’s no one-size-fits-all approach. We break down the factors to consider when choosing your targeting radius in our blog, How Narrow Should Your Geo-Targeting Really Be?

Mobile Location History: Reach Audiences Based on Previous Visits

Historical mobile location data can, where permitted and supported, help advertisers understand patterns of visitation and develop audiences based on previous interactions with physical locations.

For example, a travel brand might want to reconnect with eligible audiences who have previously visited a particular destination, while a retailer could explore opportunities to reach consumers associated with relevant shopping areas.

However, historical location targeting is more restricted than it once was. Availability depends on the data provider, verified permissions, retention periods, privacy requirements, and platform policies. Advertisers should work with partners who can demonstrate that their data is collected and used appropriately, rather than assuming historical device movements are universally available for targeting.

Best Practices for Using Geolocation Data

Our team is constantly exploring creative ways to use location-based advertising to help clients reach relevant audiences. Three particularly useful applications are events, travel, and layered audience targeting.

Events

Whether it’s a music festival, sporting event, conference, or trade show, large gatherings create opportunities for advertisers to connect with people in a particular area.

Event organizers can use geographic targeting to promote ticket sales, programming, or special offers to nearby audiences. Meanwhile, local restaurants, bars, retailers, and attractions can reach potential customers visiting the surrounding neighborhood.

Consider a large industry conference that brings thousands of professionals into a city for several days. Nearby restaurants might promote group dining options, while local attractions could advertise activities for attendees extending their stay.

Depending on the available signals and targeting capabilities, advertisers may also be able to combine location with other audience criteria to improve relevance. The key is ensuring that geographic targeting is supported by an appropriate audience strategy, rather than assuming everyone in the area is attending the event.

Travel Industry

The travel industry has countless use cases for geolocation data. Hotels, airlines, amusement parks, and resorts can use geographic targeting to reach audiences in relevant markets, promote destinations, and connect with consumers considering their next trip.

Historical visitation insights may also help identify broader travel patterns where compliant, reliable data is available. Conversely, once travelers arrive at their destinations, local businesses have an entirely different opportunity.

Think about it: travelers still need their morning coffee, somewhere to grab dinner, and places to explore. Restaurants, retailers, attractions, and other businesses in popular destinations can use location-based advertising to introduce themselves to potential customers who may not be familiar with the area. By combining geographic relevance with compelling creative and timely offers, advertisers can make their brand part of the visitor experience.

Layered Audience Targeting

Just because someone is within the vicinity of your store doesn’t necessarily mean they’re your ideal customer. That’s why location data often works best when combined with other relevant audience signals.

Layering permitted behavioral, contextual, demographic, or first-party audience insights with geographic targeting can help advertisers create more relevant campaigns.

For example, a sporting goods retailer might combine geographic targeting around its stores with an interest in outdoor activities, while a family-friendly attraction might use broader audience insights to reach travelers planning activities in the area.

These additional signals can help inform everything from audience selection to creative messaging and ad formats. Of course, advertisers should also consider the privacy implications of combining datasets. The goal is to improve relevance without making assumptions about individuals or using sensitive location information inappropriately.

Ready to Incorporate Geolocation into Your Paid Digital Advertising?

Whether you’re looking to attract nearby shoppers, reach visitors in a new destination, or make your event advertising more relevant, the right geographic strategy can help make your paid media efforts more effective.

But success isn’t simply about targeting the smallest possible radius or collecting the most data. It’s about understanding your audience, choosing reliable signals, and using them responsibly.

Digilant’s Geolocation Solutions

At Digilant, we help advertisers develop location-based media strategies that connect geographic insights with broader audience, channel, and campaign objectives.

Our team of strategists works to identify the right combination of targeting approaches, messaging, and media channels to reach relevant audiences and support measurable business goals.

Interested in exploring what location-based advertising could look like for your brand? Let’s talk.