How is Location Data Utilized in Programmatic Advertising?

Advertisements have eight seconds to capture the attention of their intended audience, so marketers must do everything they can to make that limited time count. Evidently, capturing the attention of consumers in today’s ever-changing digital environment is no easy feat. Fear not — programmatic advertising rectifies this conundrum by automating the buying and selling of online advertising. Now, marketers have more free time to focus on optimizing advertisements.

Programmatic advertising is growing in popularity, with $84.9 billion spent on the platform globally in 2019. Prior to the reliance on machines and algorithms to purchase ad space, salespeople had to be hired — which was an expensive and time-consuming process.

A parallel runs between the utilization of programmatic data and its impact on location insights. Programmatic enables marketers to clearly segment audiences based on a variety of advertising initiatives. It helps to reinforce local awareness, and audiences are continuously refined to better target prospects and customers in the future. 

Geotargeting, competitor targeting, and retargeting are three ways in which location data and programmatic advertising work together to create dynamic customer portfolios for campaigns.


Geotargeting is defined as targeting users by geographic location, and is based on fixed topographic data such as country, city, or postal code. The central ideology of geotargeting focuses on developing an understanding of consumers instantaneously, helping marketers deliver the right message to the right audience at the right time. This methodology and location data go hand-in-hand as each consumer’s location visits tells a story about their interests. Ultimately, this helps marketers deliver content meant to successfully cycle the consumer through the buying journey.

This tool opens up a world of connectivity capabilities for marketers, and provides an in-depth look at the consumers’ thought process along the purchase path. It is especially helpful when determining the best language to develop creative messaging which resonates with the target audience. For example, if an American perfume business is looking to bring their product to Italy, it would serve them well to have advertisements written in Italian, rather than English.

Additionally, geotargeting is particularly convenient when planning advertising for physical storefronts. To save on budgets and ensure the target consumer is coming in contact with the messaging, the ads should only be placed in areas where the brand is located. Take for example, creating local advertisements for different regions. It wouldn’t make sense for Big Y, a Massachusetts and Connecticut area supermarket chain, to advertise on the west coast of the United States. Rather, Big Y would want to focus on displaying ads where their grocery stores are located.

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Retargeting initiatives target consumers who have performed internet searches related to a particular brand offering. This process is achieved by collecting data on what users are searching and reading across thousands of websites.

Retargeting drums up excitement in the minds of consumers who have abandoned their online shopping carts. In fact, retargeting is one of the best ways to close sales that didn’t happen. You’ve heard the saying, “good things take time,” and this remains true in the competitive world of sales. The mass majority of site visitors won’t convert on their first visit to a brand’s website, so marketers need to build compelling advertisements to move consumers down the sales funnel and secure a conversion.

Competitor Targeting

If you feel like the market for your particular brand is relatively saturated, competitor targeting can you reach people searching for your competitors.

With the help of competitive intelligence tools, marketers have the opportunity to target consumers interested in their type of product or service, but may be unaware of its existence. For example, a brand can research the typical pain points consumers tend to have when dealing with an alternative solution, and use this newfound knowledge to highlight the brands’ advantages over the competition. This process helps to authentically increase brand awareness by waging and winning a business battle.

Moving Forward in the Promising Age of Programmatic

As brands continue to explore the benefits of utilizing location intelligence in conjunction with targeting initiatives, consumers will begin to see more content that is relevant to wherever they may be on the customer buying cycle.

When you’re ready for an in-depth exploration of real-world intelligence to inform your business decisions and delight consumers, let Gravy be your guide. With Gravy’s products such as Audiences, you can gain valuable information on your target audiences’ preferences, and develop high-visibility advertisements as a result.

6 Benefits of Location Data

6 Benefits of Using Location Data

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