Sales success relies on sparking customer interest during moments of opportunity. That’s the exact thinking behind place-based out-of-home advertising. It puts your brand and message in front of the customer in highly relevant contexts.
But how is that different from point-of-sale advertising? Also, why is place-based advertising essential if you’re already investing in, say, geo-targeted digital or local marketing like direct mail? Another key question is the budget impact of place-based advertising. Should it be a complementary tactic in your existing media budget, or included as a foundational pillar when planning for the year?
Let’s answer those questions and explain why place-based advertising serves an important role in marketing plans.
Understanding Place-Based Advertising for Local Market Reach
Store shelves are a retail brand’s battlefield. It is challenging (and expensive) to stand out. Compounding that challenge is knowing that many customers are already seeking a specific brand. They enter the store with a purchase in mind and may not be open to point-of-sale (POS) displays, after they’ve already made their decision.
Still other kinds of messages don’t involve a trip to a store. Public health and safety messages, or enticements to watch the latest streaming sensation, for example.
How can you get around these challenges? One successful tactic is place-based advertising. It changes where the moment of persuasion occurs. Place-based advertising moves out of the store to locations where it is easier to win customer attention. The key is for brands to lean into customer demographics, psychographics, and behavioral data.
How Place-Based Advertising Works
The Minnesota Department of Public Safety wanted to promote the use of appropriately sized car seats for children. Their larger goal was to reduce the number of child deaths that occur during car accidents. Their data showed that child victims were often secured in ill-fitted seats.
Momentara proposed and implemented a place-based advertising campaign supported by situational context.
We placed the state’s advertisements in locations where parents were actively thinking about their child’s well-being. The locations included pediatricians’ offices and preschools. We also put advertisements above diaper changing stations. It’s another location and moment when parents are actively caring for their child.
The right-sized child seat campaign resonated with parents. The state of Minnesota achieved a year-over-year decline in child deaths caused by car accidents.
As a rule, deploying place-based marketing into contextually relevant locations will yield the greatest results. It combines need/opportunity with a closely connected moment of intention.
What Formats are Available for Place-based Advertising?
The options for place-based advertising are broader than ever. The most common formats have been print, such as free-standing displays, table tents, and wall signage. However, brands now have a more dynamic option.
Digital out-of-home (DOOH) screens are found on gas station pumps, restroom walls, in grocery stores, and even in schools. They allow brands to use static and motion graphics, as well as sound in some situations.
What’s the Difference Between Place-Based Advertising and Point-of-Sale Advertising?
Place-based advertising and POS are similar. For example, brands can often use the same creative to serve both strategies. The critical differences come down to placement and purpose.
Place-Based Advertising
Target customers based on the location and context. The goal is to create brand awareness, provide education, and build brand preference in the moments where consumers are more receptive to such messages.
POS Advertising
Target customers in retail environments where the product is immediately available for purchase. The goal is to drive sales, whether those are intended purchases or impulse buys.
Why Digital and Targeted Local Campaigns May Not Be Enough
In terms of return on ad spend (ROAS), few opportunities match the performance of digital and local marketing. They are great values and can be hyper-targeted. So why would a company consider place-based advertising?
Five Advantages of Place-Based Advertising
- It’s real-world marketing that aligns with your audience’s habits and hobbies. It takes your marketing away from the digital screen and places it firmly within their natural interests.
- Contextual marketing is powerfully persuasive. It connects customers’ needs to related activities.
- It can act as a bridge, connecting the real world to your digital platforms using vanity URLs and QR codes.
- Place-based advertising can be more precise than mere ZIP code targeting. For example, if half of the recipients in a ZIP code need or want your product, perhaps 80% of those who play golf or visit a bar, for example, will be interested it.
- Immunity from ad-blockers and digital fatigue. Statistically, 32% of web users used an ad blocker in 2024. That number increased to 54% on mobile devices.
How to Budget For Place-Based Marketing
Media budgets must account for reach, frequency, customer attitudes, habits, home addresses, and other relevant factors, weighed against cost.
The objective of a media planner is to balance options with reality. Therefore, we can’t assert that place-based advertising is a must for every media plan. However, we can suggest the advantages and value merit serious consideration.
Many brands incorporate place-based advertising into their yearly media plans. It can also be used as a strategic add-on that boosts sales and awareness when needed. Examples of this include launching a new line or defending a market position against an aggressive competitor.
When, where, and how to use place-based advertising is best determined by having your media buyers collaborate with an expert partner for place-based advertising.
Ready to Consider Place-Based Advertising?
Place-based advertising is just one aspect of in-the-moment marketing — a strategy created by Momentara. We turn in-store, out-of-home, and event promotions into useful touchpoints that sync with the customer’s routines to encourage behaviors. The Momentara approach makes your marketing messages a welcome, impactful, and natural part of the customer’s day.
Whether your marketing needs are focused on place-based advertising or if you’re intrigued by the omnichannel opportunities offered by Momentara, we invite you to reach out. We bring you the technology, experience, production, scale, resources, and national presence to build certainty and programmatic success.
