The phrase "hyperlocal search" emerged when PC users searching for local information on engine sites such as Google were connected to the latest information, news and deals for that area. But now with rise of smartphones and tablets that integrate geo-location technology such as GPS to help users locate what’s around them, the term has evolved into what industry experts are calling Social Local Mobile Search (SoLoMo).
"'Hyperlocal search’ may be dying, but the phenomenon is evolving and becoming more mobile,” says Greg Sterling, senior analyst with San Francisco-based consultancy Opus Research. "SoLoMo is a more mobile-centric version of the same concept with greater local precision: It’s about getting nearby information on demand, wherever you may be."
In recent years, the big search engines have focused on improving localization of both content and advertising on the PC. If a retailer advertised on the homepage of Yahoo, content on that ad might be targeted according to a user’s IP address. For example, an ad for Macy’s might vary the messaging or show the store nearest to the IP address being accessed.
However, the accuracy of this information wasn’t always reliable. In fact, an IP address can be associated with a place miles away from where the computer is actually located. The geo-location technology on mobile devices is far superior, says Sterling, and since more people are adopting smartphones and tablets, marketers and major companies have infused this into their business strategies.
"The Yellow Pages and newspapers have always dominated the local space, but ‘local’ has now expanded far beyond traditional media, and many more players are tapping into what was once considered a niche market," Sterling says.
Service companies from Groupon, Yelp and Foursquare to retailers such as Starbucks have embraced SoLoMo and geo-location tactics, primarily in the form of apps. For example, a shopper craving a cup of Starbucks coffee can search for the store closest to his location.
Facebook has also recently flirted with SoLoMo, allowing members to check-in via Places and purchase local services through its now-defunct Deals initiative. However, it still has room for growth.
"Facebook hasn’t really gotten it right with any its local efforts yet," Sterling says. "The company is very interested in local, but it hasn’t fully committed to any particular initiative.”
Meanwhile, mobile app Shopkick is excelling at SoLoMo by sending rewards and offers to shoppers simply for walking into stores. The shopkick app detects a signal emitted from a device located in each participating store and it's picked up by the microphone of a shopper's phone. The detection occurs on the user's mobile device, so the privacy of information is under the user's control. The app then pushes out coupons and information about deals occurring within the store.
Related to the evolution of hyperlocal search and SoLoMo marketing is geofencing technology, which is a virtual perimeter for a geographic area. The concept is being embraced by some retailers and shopping centers nationwide. For example, real estate company DDR Corp., which owns hundreds of U.S. shopping centers, is using a location-based mobile marketing service at its 27 open-air malls across 16 markets to text deals from the retail tenants within those malls.
DDR’s program ValuText, which is powered by Placecast, picks up when shoppers enter a mall’s border and those who have opted-in to the service receive text messages about sales and promotions happening in real time.
"Concepts like this bridge the gap between the in-store and online world, and allow retailers to better learn where their shoppers are coming from," Sterling says.
Karen Hitchcock, vice president of marketing for social local mobile marketing firm SoLoMo Technology, says the concept isn’t just a passing fad: "SoLoMo is now an integral part of business strategy for companies that seek to grow, scale and connect with customers in new ways."
Hitchcock adds that consumers always want highly-personalized experiences -- with companies, doctors, merchants and friends, too – so this type of marketing is a natural progression of demand and technology.