The average Smartphone Owner uses their phone for 3 hours every day. Thats more than half of their total media consumption each day! And as a business owner, you can make sure they are spending that time in your app, interacting with your business.
Some call it "Geographically-Aware Marketing," some say "Location Based Advertising," and many don't even know what it is. But if you've ever had your phone alert you when you passed by a Starbucks, you've experienced it.
Since everyone has a location aware smart phone in their pocket (and a way to get their attention) this can be a very valuable way for businesses to increase brand awareness and emphasize an immediate need when someone is near their store. This technology is especially useful for businesses who are mobile in nature (food trucks, bands, etc) as their "fans" can get an alert when their favorite taco truck has set up around the corner for lunch!
The fact is, you need to advertise to people who are likely to buy your product, and they're more likely to buy if its convenient and they know its convenient.
We can get even more targeted with location based advertising using hyper local tech known as iBeacons.
Imagine, someone walks over to a specific area of your business. A bulletin board or a table where you have signup for an upcoming class, and as soon as they approach, their phone alerts them to add the event to their calendar, or share it with a friend! The physical world becomes digital almost magically, and people are immediately able to further engage with your business.
With traditional advertising on tv, radio, and even to an extent, web, you cast a very large net and waste a lot of time and money on marketing to people who just aren't going to convert, with location based advertising, you can pinpoint people who already poised to engage with you. This is how modern, local businesses work smarter, not harder.