What is Proximity Targeting?

Proximity targeting is a location-based marketing strategy that delivers real-time digital ads, promotions, or notifications to consumers based on their physical location. This strategy helps businesses reach potential customers when they are near a store, event, or competitor’s location, increasing the likelihood of engagement and conversions.

Unlike broad location-based advertising, proximity targeting uses precise technologies such as geo-fencing, beacons, WiFi, and NFC to engage users at the right place and time. By focusing on hyperlocal engagement, businesses can deliver highly relevant messaging to consumers within a defined geographic area.

How Does Proximity Marketing Work?

Proximity marketing operates by using real-time location data to identify users within a specific area and trigger relevant marketing messages. Here’s how it works:

1. Setting a Target Location

   • Businesses define a geographic boundary (geo-fence) around a store, venue, or competitor’s location.

   • This can be a small radius (e.g., 100m) for in-store engagement or a larger area (e.g., 1–3 miles) to drive foot traffic.

2. Detecting Nearby Users

   • Customers who opt into location services on their mobile devices can be identified via GPS, Bluetooth, WiFi, or NFC.

   • Platforms such as Google Ads, Meta Ads, and programmatic ad exchanges allow businesses to serve ads to users within the defined area.

3. Triggering Location-Based Ads

   • Once a user enters the target zone, they can receive:

     • Push notifications via a mobile app

     • Personalized digital ads on social media, display networks, or search engines

     • Special offers and incentives to visit a store or make a purchase

4. Engaging Customers at Key Moments

   • Businesses can influence purchase decisions by delivering time-sensitive promotions.

   • Proximity marketing allows brands to engage customers in real-time when they are most likely to convert.