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Proximity marketing is the practice of marketing goods or services based on a customer's actual physical location. This practice relies on things like cell phone triangulation and GPS technologies, and the use of network components that can connect with a user's smartphone, which is one of the most common ways that businesses track consumers.
Proximity marketing is also known as hyperlocal marketing.
Proximity marketing can be extremely useful to businesses. One of the clearest and best examples is when firms use proximity marketing to target advertisements to customers who are physically close to a product. Imagine walking up to a large and prominent store display, and having a coupon for those items pop up on a smartphone screen. This is one of the most straightforward uses of proximity marketing and business. It is important to note that some consumers find the proximity marketing process to be creepy or intrusive, which is why businesses need to move forward with caution. It is also one reason why proximity marketing is not yet pervasive in our society – partly because, if presented with an option to engage in proximity marketing programs, many users might decline. Like other kinds of digital marketing, proximity marketing has to take place in the context of a digitally laden world where users find themselves with limited attention scope and may choose to focus their digital activities in different ways.