26 Marketing Concepts: H is for Hyperlocal
You won’t reach as much audience, but it’s the right audience
The Mass Market is over. Cable television destroyed network television. Netflix and You Tube are destroying cable. Amazon destroyed Barnes & Noble. MP3s destroyed the music business. The fragmentation of Big #1 rolls on.
So, what’s left? Millions of small opportunities, according to Chris Anderson, former Editor in Chief of WIRED. In “The Long Tail,” Anderson suggests our culture and economy is shifting away from a focus on a relatively small number of “hits” (mainstream products and markets) at the head of the demand curve and toward a huge number of niches in the tail.
Take, ice cream, for example. If you want to dominate the number one flavor of ice cream (vanilla), good luck to you. If you’re willing to own Kahlua Chocolate Crunch in York Beach Maine, you stand a good chance of dominating your category.
So, let’s switch over to what this means locally. In Old School “local” marketing, you might target a particular city or several zip codes. Nowadays, you’re better off targeting individual neighborhoods, or even specific blocks within a neighborhood. Think about your neighborhood. Are there not unique differences from block to block?
Taken to the extreme, hyperlocal is known as “1:1 marketing,” marketing targeted at the individual level. In advertising technology, an individual smartphone can be analyzed by a remote “ad server,” a rapid auction is held among advertisers and a custom ad served up, all in in 200 milliseconds. Things have become that sophisticated.