Proximity Marketing

What is proximity marketing? To put it simply, proximity marketing is also known as location-based advertising. It is enabled via electronic devices equipped with bluetooth, wifi, GPS, etc. and proximity-based services such as participating social media channels (FourSquare, Facebook Check-Ins, etc.) and business’ apps.


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There are many benefits to using proximity marketing and proximity marketing channels, including but not limited to:

  • Customers are already on their phones, why not push an ad directly to them?
  • Rewards/Loyalty points for frequent purchases and visits
  • Immediately redeemable coupons and discount codes
  • Customer check-ins are free publicity
  • Location-based services are not only based on an address, but even can be tracked down to a certain location within a store, making sure to be specific to customers’ needs
  • Beacons have a much higher percentage of CTRs. “The average click through rate (CTR) for a Facebook ad is 0.119%, according to a recent Wordstream report…The average click through rate (CTR) for beacon based push notifications can be as high as 80%, according to the data published by push notification technologist Kahuna” (Thomas)
  • Analytics are able to measure which offers, times of day, frequencies, etc. are successful


Along with mobile devices, the increasing popularity of smart watches and other wearable devices are making proximity marketing tactics even more important. These allow for yet another way to get your customer’s attention; No need to worry about whether your customer left their phone at home/in the car, if their phone is tucked away in a pocket/purse, or even in silent mode. Providing notifications to a wearable device means your business can follow them, in a non-creepy way of course… With all this competition for your customers attention, that only makes the ad space on their phones and on their wrists more desirable for marketers. Pretty soon, beacons and other location-based ads are going to be more expensive and of higher production value. In fact, “According to market research company, Research and Markets, the market for proximity marketing is expected to be valued at USD 52.46 billion by 2022” (Pavithra 2016). Retailers are currently at the front of the race, but tech developers are coming up quickly.


One example of myself taking advantage of a location-based advertising strategy is with Target stores. Every time I’m approaching a Target location, my phone automatically picks up on it and triggers their Cartwheel app to appear on my lock screen. From there, I am able to open it up and see all of the latest deals and promotions they have to offer, then load them onto a barcode that gets scanned at checkout. If you love shopping at Target like I do, I highly recommend downloading their app.


My client, 27th Star Co., is a small online retailer, so location-based advertising is not the same for them as with brick-and-mortar stores. However, if and when they do open up a physical location, I would highly recommend utilizing a beacon-promoximity marketing combo to increase sales. Customers could receive notifications highlighting any sales or promotions when nearby, and they could even get rewards for visiting the shop often, too.




Babu, Pavithra. “Best of Beacons this Week: Proximity Marketing Market will be Worth $52.46 Billion by 2022 and more.” Beaconstac. N.p., 14 Oct. 2016. Web. 05 Mar. 2017.

Thomas, Luke. “Benefits of Proximity Marketing.” BeaconSage. n.p., n.d.,Web. 05 Mar. 2017.





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