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Hyperlocal social drives purchase intent

News, 14 April 2016

NEW YORK: Major brands such as Allstate and Mondelez are finding hyperlocal social marketing can be effective in delivering the right message in the right place at the right time.

Sanjay Gupta, CMO of Allstate, described hyperlocal social marketing as a tactic that enabled brands "to communicate to a group of individuals with similar interests in a specific community or neighbourhood".

He told Forbes that "Providing agents with opportunities to connect with customers on a more personal level further demonstrates that they care about them and the local community".

It's an approach that fits neatly with the brand's long-standing "Good Hands" positioning that has also seen it adapting its core brand messaging to reach out to various different groups, including multicultural consumers and the LGBT community.

This more personal approach also means brands are more able to actively engage their target audiences by reaching them within their everyday lives.

"By connecting with the right consumers at the right place and time, brands are much more likely to make a lasting impact and see a return on investment than they are with generic marketing campaigns," explained Amish Tolia, Chief of Strategy at Pear, an agency linking brands and local groups seeking sponsorship.

And when it's done right the returns are significant. For example, the Mondelez snack brand Ritz Bits has sponsored around 1,000 youth soccer teams across the US, which resulted in more than 100,000 digital brand engagements and a 77% lift in purchase intent among their target demographic.

Pear suggests that addressing sponsorship by reaching group organisers in their target demographics can create a ripple effect through communities and social networks.

In effect, said Forbes, "hyperlocal social marketing becomes a new way to leverage the idea of brand advocates but do so in a way that creates value online and offline".

Data sourced from Forbes; additional content by Warc staff