What is local area marketing?

Find out how marketers target customers on a community level with local area marketing (LAM) as part of a national campaign.

Local area marketing is a highly effective way to reach a specific audience with a specific message in a specific location. By running campaigns in local communities, you can closely engage with the individuals, groups, organisations, and businesses you’re targeting in certain areas.

Free reign for all businesses

LAM is all about leveraging the buying power of a local community and connecting with them in a meaningful way. An ideal marketing strategy for local businesses – like plumbers, cleaners, and accountants – LAM can boost awareness, drive sales, and establish greater connections with customers in a community.

But that doesn’t mean mid- to large organisations or franchise businesses can’t take advantage of a local campaign {href in letterbox marketing page to small business section TBA) . One of the most successful examples of LAM in action is Aldi’s Special Buys catalogue. It’s the most-read supermarket catalogue, with more than five million readers every week, increasing consideration, footfall, and sales for this international brand at a local level.

Owners of franchised businesses can also use LAM campaigns to promote specific stores or locations, supplementing the larger franchise’s regional or national marketing campaigns. Aussie brands, such as Coles, Dan Murphy’s, Myer, and JB Hi-Fi are all examples of retailers using this approach.

Driven by data

Marketers today have the tools to target their LAM campaigns with even greater accuracy. Data sources that provide insights into how and why your customers buy – such as loyalty programs, purchase history, and interactions on social media – can be mapped against metrics like location, demographics, and industry-specific data on life stages or socioeconomics to find your target audience. IVE Distribution’s media planning tool SwiftPlan is a great tool to find and target your audiences on a local level.

Reaching local consumers

Traditional LAM strategies that connect with people at the local level include:

Cross-promotion and partnerships with local businesses
. Sponsorship of community events or teams engaging with local media (newspapers, radio, cinema, outdoor). 
Letterbox or direct mail campaigns.

Marketers can use these channels on their own or as part of a broader integrated regional or national campaign.

LAM strategies can also be applied online. For example, Search Engine Optimisation (SEO), can be used to target potential customers in your local area. Search Engine Marketing (SEM) can be used to target a local audience by setting up online adverts so that they only appear on devices in your local area. Thirdly, geo-targeted email campaigns can allow you to focus on recipients in areas where there is a high concentration of stores or your target audience. Finally, location targeting on social media also lets you refine your campaign’s audience to people who live in your set location.

Local area marketing in action

A great example of LAM in action is a campaign conducted by TShopBizGroup. This Telstra franchisee used accurate targeting and a timed letterbox drop to capitalise on the rollout of the NBN [this was linked to this Case Study https://www.salmat.com.au/our-expertise/case-studies/tbc-kawana-letterbox]  and connect with potential customers near its outlets in Queensland’s Sunshine Coast.

The objective was to get residents to register their interest with the group’s Telstra stores and drive uptake of the NBN packages they had on offer. The company used the rollout as the trigger for the communication. The drop was timed with the rollout and went to specific households on a street-by-street basis. Residents then had to return the flyer to their local store or text a code to register their interest.

This local letterbox campaign proved more successful than any other medium used as part of the campaign and achieved a 3:1 return on investment for TShopBizGroup.

Sound like an approach that could work for your business? Get in touch with IVE Distribution to find out more about our letterbox marketing services [this will need to link to the distribution page] or call us on 1300 725 628.

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