Here’s How Location-Based Marketing can help your App Marketing Strategies

Abhinav Girdhar
By Abhinav Girdhar | Last Updated on June 30th, 2022 2:42 pm | 4-min read
Location Based Marketing - Appy Pie

In the present day, the number of smartphone users worldwide surpasses 3 billion and is anticipated to grow by several hundred million in the next couple of years. With over 3 billion smartphone users, the number of mobile apps downloaded in 2019 was 204 billion, with total revenue of $462 billion.

Keeping this fact in mind, marketers and businesses worldwide focus on location-based marketing in addition to generic mobile app marketing to target potential customers by strategically utilizing various proximity marketing tools to help them pass through the marketing funnel.

Location-based marketing has mostly grown over the years due to the constant rise in connected devices.

Web Marketing Strategies to Mobile - Appy Pie
Location-based marketing in conjunction with mobile app marketing is a clear winner since the latter is the process of engaging your app users throughout their usage of the app.

So, how can location-based marketing help your app marketing campaigns?

Ways location-based marketing can help with app marketing

  • Attract more downloads whilst improving your service
  • Location-based marketing is one of the best ways to increase your customer base and increase brand awareness. eMarketer forecasts that marketers will spend $26.5 billion on mobile location-targeted advertising.

    There are four primary types of location-based marketing – geofencing, geotargeting, geo-conquesting, and proximity marketing.

    Making use of geolocation data by businesses and enterprises to advertise helps gain new app downloads and also, in improving the service for their existing customers.

    People who have never heard of your app, or may have never even considered using it might be persuaded into trying out your app. Through location-based marketing, mobile app owners can help people with what they want and become a potential customer.

  • Increase in-app conversions and participation rates
  • In today’s economy, most businesses rely on mobile apps to sell their products and also, to increase their conversion rates. A lot of apps fail to engage with their customers and lose out on crucial revenue streams because of ineffective marketing.

    In such a competitive market, location-based marketing can be used by marketers to get the most out of their resources – their customers’ attention.

    Make use of geofences and beacons at a geographic location, especially at points of interest such as an entry/exit point, busy terminal, or even a POS.

    These tools can help identify customers and target them accordingly to send personalized messages and even provide incentives to help fulfill the task.

    Place geofence or a beacon at entry/exit points, help customers with indoor navigation, or help them check-in. Make use of QR Codes, which can be easily created with the help of an online QR Code generator, as well to enhance customer experience and provide an incentive or a coupon code upon scanning it.

    Not just that, with the help of location-based marketing, apps can also make personalized recommendations to help them with their requirements.

    At the 11th anniversary of the Mobile World Congress (MWC) made use of location-based marketing with the help of a mobile app powered by GSMA. By the end of the show, 65% of the attendees had downloaded the app and 64% turned on location services.

  • Improve customer retention with smart spaces
  • The next biggest trend in location-based marketing is smart spaces.

    Smart spaces are essentially physical environments that allow users to engage with interconnected networks, like Apple’s Siri, or Google’s Google Assistant.

    The rising popularity of smart spaces into our physical environments will not only make companies with apps reach out to us via these methods but also easier for them to suggest an item, set reminders, and even help us with a particular action.

    For instance, if you tell Siri to pay for the carton of juice that you just bought, Siri will automatically open the app associated with payments and help you with it.

    Apps that are built to be compatible with smart spaces have an upper hand at customers opening the app and navigating through the app.

    Location-based marketing tools can be used in such instances that can second-handedly suggest the smart space technology provider open a particular app and use it depending on the customer’s location.

    As smart spaces become more connected with us, app marketers can utilize this technology and provide better-targeted advertising with enhanced customer experience.

  • Measure the metrics of your app KPIs
  • Regular analysis of your mobile app metrics, or KPIs, helps you gain insights on customer behaviour and how well the app is performing to continue or improve any feature.

    Location-based marketing tools help you measure the performance of your app via analytics based on the average time a customer spends on your app, what feature they click on the most, and what key feature is ignored.

    A split A/B test can be performed to gauge certain features in your app to fine-tune or completely eliminate from the app.

  • Improve customer relationships with personalized experiences
  • Product and service experience has become crucial in today’s world for business owners. Good customer service experience is always crucial for any type of business.

    According to a survey, 54% of consumers expect brands to really know and understand them as people, and for communications to be tailored to their values and preferences. This insinuates that consumers prefer personalization as opposed to generalized marketing.

    Location-based marketing helps brands understand their consumers better by learning about their movements and preferences in detail.

    Leveraging location and behavioural data, app marketers can deliver more personalized messages to the right audience at the right time.

    For instance, when a customer enters a rooftop restaurant, with the aid of location-based marketing, they can receive a welcome message, a suggestion of a cocktail, and even seating preferences.


Regardless of the type of marketing, the best kind of marketing is based on the data insights you have pulled from your very own user data.

To measure the metrics of a successful app marketing, keep the following protocols in mind –

  • App retention
  • Daily/monthly activity
  • Session length
  • Time spent on the app
  • Acquisition
  • Screen flow
  • Lifetime value (LTV)

Location-based marketing is important to marketers from all industry verticals to increase customer engagement and customer retention. Location-based marketing, when used for app marketing can result in great outcomes.

It has proven to be an effective tool because it helps app owners to personalize their outtakes, reaches their audience in time, and is very targeted.

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Abhinav Girdhar

Founder and CEO of Appy Pie

App Builder

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