The Power of Hyperlocal: A Retail Media Owner’s Guide

The Power of Hyperlocal: A Retail Media Owner's Guide

In today’s competitive environment, capturing attention and driving engagement – whether in stores, pubs, restaurants, or other customer-facing spaces – requires a smarter approach. Static signage simply can’t compete with the power of personalisation. Hyperlocal targeting, fueled by data and real-time insights, is the key to delivering relevant, in-the-moment experiences that resonate with modern consumers. This guide explores the core concepts of hyperlocal targeting, along with the benefits it offers across industries and real-world examples of its success.

What is Hyperlocal Targeting?

Definition: Hyperlocal targeting delivers marketing messages and promotions to customers based on their precise location and real-time data. It goes beyond general location awareness to pinpoint shoppers within specific sections of a store, pub, or other venue.

Why It Matters:

  • Personalised Experiences: Meet customer expectations.
  • Optimised Inventory: Maximise sell-through and reduce waste.
  • Enhanced Customer Satisfaction: Drive loyalty and repeat visits.

Scenarios

  • Flash Sales with Laser Focus: A slow-moving item in a store gets a localised boost with a discount advertised only on screens near the relevant aisle and where the item is stocked.
  • Pre-Game Fuel Up: As crowds gather near the stadium for a big match, nearby pubs see ads shift to promote easy snacks, shareable platters, and to-go drink specials.
  • Trend-Driven Promotions: Historical data reveals an unusual spike in sandwich sales on Tuesday afternoons. This insight empowers retailers to quickly set up displays promoting meal deals during this ‘second rush’, maximising upsell opportunities.
  • Promoting the Perfect Pairing: Trend analysis shows coffee sales surge at 4 pm. A flash promotion for a ‘coffee + doughnut’ combo boosts sales of the less popular item.
Key Data Types for Hyperlocal Targeting: Location, location, location, Inventory Integration and Planning for Success

Key Data Types for Hyperlocal Targeting

To shoppers, hyperlocal targeting feels effortless. But behind the scenes, sophisticated technology is at work. Here’s a breakdown of the key elements:

  • Location, Location, Location: Data from various sources (mobile signals, in-store beacons, etc.) pinpoints where shoppers are within the store. This allows the system to understand not just that a shopper is in your store but what section they’re browsing.
  • Inventory Integration: Knowing what’s in stock (and what might be overstocked) is crucial to avoiding frustrating shoppers with ads for unavailable items. This two-way data flow prevents disappointing experiences and ensures ads are always promoting items actually available.
  • Planning for Success: Trend analysis is essential. The system examines historical purchase patterns, revealing hidden opportunities and informing timely promotions. This proactive approach ensures messaging is aligned with shopper behaviour.

Beyond Ads: Understanding the Data Behind Hyperlocal

Hyperlocal targeting isn’t just about selling more products. Here’s how it transforms the entire customer journey:

  • Helping Shoppers with Wayfinding Assistance: Digital screens near aisles guide shoppers to desired items, turning frustration into finding the right product quickly. This can increase basket size and overall shopper satisfaction.
  • Boosting Loyalty: “You’re near the dairy aisle, get 20 bonus points with any milk purchase today” taps into in-the-moment decision-making and incentivises shoppers to try something new while they’re already in the right mindset.
  • Playful Touches: Think fun suggestions based on context. Rainy day? Ads in the toy aisle promote boredom-busting crafts, while displays near the coffee section offer cosy loungewear.
Hyperlocal in Action: How Jumbo Transformed the In-Store Experience

Hyperlocal in Action: How Jumbo Transformed the In-Store Experience

Jumbo, a major European supermarket chain, partnered with retail media specialists to revamp their in-store messaging.  Here are a few of the results they saw thanks to a hyperlocal approach:

  • Enhanced Customer Experience: Shoppers received helpful wayfinding and offers perfectly timed to their in-the-moment needs.
  • Localised Campaigns: Store managers gained flexibility to tailor ads based on local events and shopper demographics.
  • Real-Time Responsiveness: Promotions for overstocked items shifted dynamically based on sales data, reducing waste.
  • Advertiser Advantage: Brands reach shoppers directly at the point of decision, boosting campaign ROI.

Key Takeaways

  • The Power of Immediacy: Jumbo’s ability to react quickly to inventory levels, crowd patterns, and even local events made their messaging incredibly effective.
  • Location is Key, But Not the Whole Story: While hyperlocal pinpoints where shoppers are, Jumbo’s success stemmed from combining that with inventory data and a deep understanding of customer behaviour.
  • It’s Not Just About Ads: Hyperlocal enhanced the entire in-store experience, making Jumbo a more helpful and enjoyable place to shop.
Implementing Hyperlocal in Your Space: Step 1: Assess Your Data, Step 2: Outline Your Goals, Step 3: Choose Your Tech Partner

Implementing Hyperlocal in Your Space

  • Step 1: Assess Your Data: What customer data do you already collect? What additional data could you potentially gather? (ex, customer dwell time in specific aisles)
  • Step 2: Outline Your Goals: What specific improvements do you want to achieve with hyperlocal targeting? Increased sales, better customer experience, etc.?
  • Step 3: Choose Your Tech Partner: Implementing hyperlocal solutions effectively requires the right technology and expertise.

The Benefits of Hyperlocal for Retail Media Owners

  • Increased Ad Relevance: Timing is Everything. Messages that align with the shopper’s location and immediate context have a much higher engagement rate. This means better ROI for advertisers, making your network more attractive.
  • Optimised Inventory Management: Turn Data into Dollars. Strategic promotions can move overstocked items faster, while ads adjust dynamically based on real-time inventory levels. This reduces waste, maximises sell-through, and keeps shelves stocked with items shoppers actually want.
  • Enhanced Shopper Experience: Happy Customers = Repeat Customers. From wayfinding assistance to those perfectly-timed offers, hyperlocal targeting makes shopping easier and more enjoyable. This builds loyalty and drives shoppers to choose your stores over competitors.
  • Future-Proofing Your Network: In an increasingly competitive retail landscape, hyperlocal future-proofs your media network by offering capabilities shoppers and advertisers will soon expect.

The Future of Retail Media is Now

Hyperlocal targeting offers a powerful way to transform the in-store experience, boosting customer satisfaction and driving sales.  Here are a few questions to consider as you explore the potential of hyperlocal for your own retail media network:

  • What data sources are currently available to gain deeper customer insights?
  • How can your media network be optimised to deliver personalised content at the right time and place?
  • What are your goals for enhancing the in-store experience through hyperlocal targeting?

By embracing hyperlocal strategies, you can future-proof your media network and position your retail locations for success in the ever-evolving shopping landscape.

Ready to Transform Your Retail Media Network?

Discover the power of hyperlocal with LDSK. Contact us to learn more!