Dynamic Hyper-localised Ads: Taking geotargeting to the next level

by Freddy Aursø

Have you ever sat and plugged in every post code that you do business in into the Facebook Ads Manager? That is geotargeting and while it can be effective, it is time consuming and static. To address this, Lighthouse8 has created a solution to automate this process and add dynamic messaging to improve click through rates (CTR).

How does geotargeting it work?

One of our clients needed to target people within close proximity to their brick and mortar stores in order to get them to visit “on the go”. We know that having a hyperlocalised ad generally leads to a better CTR, however the challenge was to also push personalised messaging with the ad, to include the location in the ad text. Luckily, this was an easy fix with K8 on our team and we were able to programme her to create a personalised ad to people within the correct proximity to their stores. K8 had to create over 500 ads and landing pages, a task that only takes a second – or two when you are a robot, depending on the WiFi. This particular client enjoyed a 109% increase in conversion rate and paid 59% less per conversion than before utilising K8´s hyperlocal capabilities.

So why do hyperlocalised ads perform better?

In an on-demand economy where people don’t want to wait, “near me” mobile searches have been skyrocketing. Between 2015-2017 “near me” searches with a variant of “can I buy” or “to buy” increased by 500%. And searches wanting things “open/near me now” have increased by 200%, providing the ideal environment for hyperlocalised ads. To get the most value however, you need to make sure your ads are showing to the right people at the right time – right before they wish to convert.

Think with Google Graph showing increasing 'Near Me' trend

Through microtargeting to specific audiences, you are no longer wasting media spend on targeting people who aren´t. This may decrease reach, however, it is perfect for campaigns that are focused on conversions and ROAS. Hyperlocalised ads can also be dynamic, meaning media spend is pushed to areas where more potential converters are located. Instead of guessing where your best markets are, let the data speak for itself and decide. Each day, each hour is different and K8 can adjust campaigns for the best results around the clock.

Don’t just focus on location

Another client had a similar request but with a twist! They wanted to advertise within proximity of their service offering, but that offering was on the move and each service partner only had a certain capacity. K8 was able to create ads for each new geographical location and made sure to check capacity of that location before pushing ads. As a bonus, the service partners with the best reviews were given more media spend as long as they had capacity.

K8 has been developed to consider extra factors that take hyper-localised ads to another level. If your competitors are still plugging postcodes into Facebook or Google, then you can go ahead and leave them in the dust!

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