Has your infotainment system shown you ads based on your location? This new in-car advertising is called geotargeting and it’s a great way to reach customers.
In order to utilize your navigation system, you must have your location data turned on. This allows advertisements for local businesses to be sent to your screen. That screen can be your smartphone or your infotainment screen. If you’re looking for a great place to go eat, its easier than ever to find the right place to go based on data and advertising offered thanks to your real-time location.
Geotargeting is nothing new
Smartphones have location-based information and when you have your location data turned on, advertisers can easily send you information based on your location. When you perform an online search using your smartphone, the first results you’ll receive should be in your local area. Most consumers expect these to be the results and have built their expectations for personalization which makes in-car advertising a modern solution based on your location. You could soon see direct marketing on your infotainment screen, especially when you pull off at an exit during a road trip in search of food and fuel.
How do these ads work?
Your location is not private, even if you don’t think about it or consider it to be vulnerable to being used. This brings us to geotargeting ads, which harness the power of GPS and location data to provide digital content that’s pertinent to your location. This has become a game-changer for local businesses and global brands, ensuring specific ads and messages can be sent to customers in defined geographic locations. This information helps brands increase their marketing impact by being present in your location at the moment when you’re most likely to make a purchase decision.
What challenges do traditional geotargeting ads face?
The advantages of these ads are many, but they also have some challenges, including:
- Accuracy and Precision Traditional geotargeting can struggle with the exact location of a user, which means some marketing efforts are misdirected.
- Privacy Concerns Many users are becoming much more sensitive toward data privacy. With many users more cautious about sharing their locations, geotargeting can become problematic.
- Relevance The growth of the digital space means marketers have a harder time ensuring ads are relevant to the consumer’s current needs and interests.
- Ad Fatigue Consumers receive digital ads all day long, which leads to ad fatigue and many simply glossing over the ads and ignoring them. This is a challenge for all ads.
- Real-Time Dynamics The nature of some geotargeted ads mean they aren’t using real-time information, which means they are missing the opportunity to offer promotions when consumers are in the local area
How can businesses overcome these challenges?
The challenges of geotargeted advertising has been problematic for many brands and businesses for years. With the use of in-car advertising, the solution has arrived, allowing businesses to overcome the previous challenges. This type of advertising offers a much more refined approach, leveraging real-time data, privacy compliance, and relevance to provide users with ads that make sense at that time.
This new solution changes the game and allows ads to reach users through the systems they use and trust frequently. These system require the use of GPS data, which means its nearly impossible to miss the mark when it comes to location-based advertising. By using information from the vehicle’s navigation and infotainment systems, businesses can send ads based strictly on the real-time location of the vehicle.
It’s all about usefulness
Instead of missing the mark with ads that are no longer relevant, this new type of location-based marketing provides useful, actionable information that’s meant for the driver’s immediate context and needs. This means the ads must be precise and direct, which can be challenging. That said, when using the vehicle’s exact location, advertising of local business can be much more effective.
Going into the future
Car screens have evolved and grown quickly over the years and that should continue to be the case. As the screens and their programming becomes more robust, expect in-car advertising to become a significant advancement in the use of geotargeting, not just a passing trend.
The use of these new ads can be an impressive advancement in an effort to create value-driven customer experiences, which should create unique offerings for most consumers. This new type of marketing could show up on your car’s screen in the near future, giving you access to more local information and advertising.
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