Location-based advertising on the Facebook platform allows businesses to deliver promotional content to users within specific geographical boundaries. For instance, a restaurant could target its ads only to people living within a five-mile radius. This precise delivery mechanism utilizes a combination of user-provided location information, IP addresses, and mobile device GPS data.
This localized approach offers significant advantages for maximizing advertising budget efficiency and achieving higher returns on investment. By focusing on a specific audience segment, businesses can avoid wasted ad spend on individuals unlikely to convert into customers. Historically, advertising relied on broader demographic targeting. However, the advent of digital platforms and mobile technology enabled highly granular location-based advertising, revolutionizing how businesses connect with potential customers. This precise targeting facilitates enhanced campaign performance measurement and provides valuable insights into customer behavior based on location.