gis marketing

GIS Marketing: How to Use It for Business

  • February 5, 2024
  • Guides
  • Author: Volodymyr Ovramenko
  • Reading time: 10 minuntes

If you are a business owner who wants to target the right audience in the right location, GIS marketing is an excellent choice. Today, marketers employ various techniques and strategies to attract clients. However, geographic data is an effective solution for targeted and personalized marketing efforts.

Location data is a powerful tool for business growth. According to the statistics, 48% of marketers reported that geographic information improved their return on investment and engagement. Another 37% highlighted that it helped them deliver relevant content to consumers.

Do you want to know more about marketing GIS, how to use it, and valuable examples? Read our comprehensive guide and harness the power of location-based information for your marketing strategies. 

What Is GIS Marketing? 

gis for marketing

GIS marketing is a special marketing approach that combines geographic data with marketing strategies. It’s an effective marketing solution to grow your business. That’s because, knowing geospatial details, you can create targeted campaigns. 

GIS analyzes, visualizes, and interprets different types of data. Businesses can use this location-based information to maximize their efforts. They will know the perfect areas for launching a business. And have an image of a potential client, their needs, and their income. 

Key Benefits of Using GIS in Marketing

If you want to find out more about marketing GIS, let’s delve into its advantages. There are several compelling reasons to use GIS for your business:

  • Precision targeting. GIS marketing allows businesses to target their efforts precisely. These can be geographic areas or various demographic segments. This precision ensures your marketing message reaches the most relevant audience.
  • Location-based insights. GIS in marketing is a useful tool for providing insights into customer behavior and preferences. They are based on people’s locations and an analysis of various factors. These can be foot traffic, regional buying trends, etc. Thus, your business can tailor its marketing strategies. 
  • Proximity marketing. With marketing GIS, your company can send location-based promotions to potential customers. It boosts conversion rates significantly as people are close to a store or point of interest. 
  • Personalization. Geographic data enables businesses to personalize their marketing messages. GIS marketing leverages the power of location for that. This allows companies to make marketing content more engaging and relevant.
  • Market analysis. Marketing GIS assists in assessing market potential and saturation in different geographic regions. It provides insights into market trends, customer demographics, and competitor presence. Businesses can make more informed decisions based on geographic data.
  • Efficient resource allocation. GIS marketing is key to the effective allocation of marketing budgets, staff, and resources. That’s due to a focus on high-potential areas. This maximizes the return on investment.
  • Real-time adaptability. Marketing GIS contributes to incorporating real-time data. It’s especially relevant in our fast-moving world, where conditions change and customers move. It helps business owners adapt marketing strategies quickly. 
  • Competitive advantage. With GIS marketing, you can better understand the distribution of competitors and market saturation. Your company can identify opportunities to stand out in the market.
  • Market expansion. If your business looks to expand, GIS marketing helps identify strategic locations. You can make informed decisions about opening new stores.

As you see, GIS for marketing is a great choice. It improves the precision, personalization, and efficiency of marketing efforts. Your target audience will be at your fingertips. Don’t wait to connect with your target audience more relevantly and effectively.

How Is GIS Used in Marketing?

gis and marketing

GIS has lots of applications in marketing. Geographic information system technology visualizes the location of customers. GIS marketing uses various demographic, purchasing, and spending information. The analysis of geographic-related data helps your company yield incredible results. 

Identify Potential Customers

Marketing GIS identifies and maps potential customers based on their locations. GIS experts analyze demographic data to find where potential customers are concentrated. GIS marketing enables businesses to engage with target audiences. 

For example, a grocery store chain uses GIS to select the ideal location for a new store. They choose an area with a growing population and minimal competition. Targeted promotions result in increased foot traffic and sales.

Assess Market Opportunities

GIS marketing visualizes data related to market trends, consumer preferences, and competitive landscapes. This allows businesses to evaluate market opportunities and make informed decisions. 

For example, a real estate developer uses GIS to identify a growing trend of young professionals moving into a suburban area. They pinpoint an ideal location based on competitive analysis, accessibility to amenities, and preferences. This data-driven approach helps them find the ideal location for a new residential complex.

Track Marketing Campaign Performance

Using GIS to track marketing campaign performance allows businesses to gain insights into the effectiveness of their marketing efforts. Companies see what regions are responding well to their campaigns and adjust strategies accordingly. Marketing GIS improves businesses’ results with heat maps, A/B testing by location, geofencing analysis, and more. 

For example, a retail chain uses GIS to analyze their winter clothing campaign. They discover that regions with harsh winters have the highest sales. They adjust their strategy, focusing more on these areas and tailoring their messages accordingly.

Customer Segmentation Based on Location

GIS marketing enables the segmentation of customers based on their geographic location. This approach divides the customer base into distinct geographic segments. Businesses can deliver targeted marketing messages tailored to the preferences and needs of each segment. 

For example, an e-commerce site divides its customers by region. In the Pacific Northwest, they promote waterproof gear for rainy hikes. While in the Southwest, they advertise lightweight, breathable clothing for desert adventures. This location-based segmentation allows businesses to engage customers with products that suit their local needs and preferences.

Geographical Targeting 

geo marketing

Geographic targeting involves delivering marketing messages to specific geographic areas or regions. Marketing GIS assists in defining these target areas and optimizing marketing efforts to reach the right audience in the right location. 

For example, a local coffee shop wants to promote its new drink. They may use social media advertising with geographic targeting to reach nearby customers. Users within a 1-mile radius of the shop can see their ads. Geographic targeting helps them increase foot traffic and sales.

How is GIS used in marketing?

  • Identify potential customers;
  • Assess marketing opportunities;
  • Track marketing campaign performance;
  • Customer segmentation based on location;
  • Geographic targeting.
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Geo Targeting Marketing: Examples 

Geo-targeting marketing is a marketing strategy that targets advertisements to users based on their location. ​​Geo marketing allows companies to connect with customers on a location-specific level. It’s especially relevant for businesses with physical locations and local service providers.

Let’s explore examples of geotargeting:

  • Starbucks mobile app. Starbucks uses geofencing technology in its mobile app. When a user with the app enters a geofenced area around a Starbucks store, they receive notifications. These can be promotions, new menu items, or the option to place mobile orders for pickup. This location-based approach has helped attract more customers and boost app engagement.
  • Pokemon Go sponsored locations. In the popular augmented reality game Pokémon Go, businesses can sponsor their locations as “PokéStops” or “Gyms.” This encourages players to visit these businesses in the physical world to interact with the game. Many businesses have capitalized on this concept to attract customers and increase their visibility.
  • Waze advertising. The navigation app Waze allows businesses to place ads on its map. They target users based on their real-time locations. For instance, a fast-food restaurant can promote its nearest location to drivers in the vicinity, enticing them to make a quick stop.

The Future Of GIS In Marketing

marketing gis

Advancements in technology and data analysis continue to shape the GIS marketing industry. GIS will enable marketers to create highly personalized experiences for customers. Moreover, we can expect the integration of AI and machine learning in marketing GIS. It’d also be very exciting to see how GIS extends to indoor spaces. Businesses will be able to track customer movements and improve in-store navigation. They will offer personalized promotions based on shoppers’ positions within a store.

FAQ

What is marketing application for GIS?

Marketing practitioners use geographic information systems to achieve better business outcomes. There are many applications, including customer relationship management, risk assessment, market segmentation, competitive analysis, and more. GIS is a powerful tool that can make your marketing campaign more targeted and effective. 

Why is customer location so important to marketing planning?

Customer location is a crucial metric for marketing planning for several reasons. It allows marketers to target their efforts at specific regions, neighborhoods, and demographics. Moreover, they can divide their customer base into distinct geographic segments that reveal their needs and preferences. Knowing the customers’ location, you can send location-specific promotions, offers, or advertisements. You can optimize product distribution and reduce shipping costs.

How to add marketing data to GIS?

If you want to enhance your marketing efforts with geographic insights, here are some simple steps to add data to a GIS. Firstly, collect the marketing data, such as customer demographics and sales figures. Now, select the GIS platform that meets your needs. The next step is preparation to ensure it’s compatible with your GIS software. After that, import the data, and if there are addresses, geocode them. You can generate maps and visualizations, perform analysis, and much more. Consider updating your marketing data regularly for more accurate results. 

Conclusion

As you can see, GIS and marketing are tightly connected. GIS marketing can help your business grow, make data-driven decisions, and optimize marketing strategies. Geographic data gives a lot of benefits to marketers. There are many real-life examples proving that. The future of marketing GIS is exciting. As technology continues to evolve, marketers will have even more powerful tools at their disposal.

GIS Marketing with Mappitall

Mappitall can offer you a reliable GIS marketing solution. Our team of experts has lots of successful case studies and is ready to share their experience with you. We have an individual approach to every client. However, our marketing GIS strategy remains unchanged. 

So what are we doing to boost the efficiency of your business? First comes a comprehensive gathering of relevant marketing data. Our experts collect all information related to customers and their location. These can be their age, gender, race, education, marital status, income, and many other details. We take GIS marketing data from official sources. 

Mappitall experts mainly focus on the citizens’ income level in a certain area. We take into account locations that can be suitable for launching your specific type of business. It’s important that the selected region isn’t teeming with competitors. We analyze various statistical data to find out how much citizens of this place are willing to spend on the type of services or products that our client offers. 

We employ cutting-edge geospatial analysis techniques to uncover valuable marketing GIS insights. Besides, our experts create isochrone maps to visually represent the areas people can reach within a given time or distance.

In such a way, our geospatial marketing analysis can help entrepreneurs find the perfect location for their business in a specific area. Our GIS company provides marketing practitioners with relevant data to determine whether it’s worth starting a business in that place. 

If you have any questions, don’t hesitate to contact us. We can offer a tailored GIS marketing solution for any type of business. 

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    mapping background image Volodymyr Ovramenko author image

    CEO and Founder at Mappitall

    An entrepreneur and business leader, Volodymyr began his career in the late 1990s at the Laboratory of Geoinformation Systems of the Kharkiv National University of Radioelectronics.

    In 2007 Volodymyr created Mappitall, and grew the company from a small agency providing GIS solutions to one of the industry leaders in Ukraine, a reliable technology partner for many international enterprises and top-level organizations around the world.

    As CEO, Volodymyr is the driving force behind the company’s strategy and business development, actively working on the development of Mappitall’s business model, attracting more and more talented people who share his vision and mission.