Successful Geo-target marketing for SME’s

IKEA have used geo-targeting in their marketing mix since 2014 along with ASDA and Morrison with great results – a 32 % to 60% increase in store footfall and 3 times the industry standard for click conversions.  We wanted to explore how geo-targeting could benefit an SME,  helping them to deepen their relationship with a major stockist who was taking on new lines and grow their market share for new listings with a new stockist.

What did we do?

We reached out to potential purchasers who were geographically centered one mile from a stockist’s store. Our market research, helped us be very specific in our target audience; we settled on females vegans aged 18 to 35.  The media we used was engaging, with an individual targeted message super relevant , we also launched the campaign to run during “Organic September”.

There were three rounds of targeting, the first for product awareness, the second while the products were on offer and the third after a period on offer without geo-targeting.

 What happened?

We launched on Facebook and Instagram, settling on Instagram as the campaign progressed as the CPR was much lower. An investment of less than £16.00 pounds in each round saw reaches of over 1000 with an average engagement of 10%. A 72% uplift in sales was recorded over the period and latent growth continued in sales after the campaigns completed.

This particular brand has recorded an uplift of 40%-60% of sales when their products have been stocked for a period and are then discounted, here were new lines and new stockists, a very different challenge. We know from experience that discounting is often an unsustainable marketing tool which eats into profit and is likely only to see this new buyer repeat a purchase when the product is again discounted.  What geo-targeting does is drive footfall; it advertises a product to a greater proportion of people who want that product and who are near to a point of delivery.

Whats really exciting for us is that this approach is likely to work for a myriad of different businesses. If you think about where your customers are, how far they are likely to travel to purchase your services or goods and what they are interested in then geo-targeting with social media could deliver a significant uplift to your sales.

As advertisements become more and more customer-specific this is a cost-effective way of harnessing the approach and deliver innovation to your category managers, innovation is often one way that their success is measured.


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