The Guide To Postcode Targeting: What Is It?

January 12, 2024
7 minutes

Postcode targeting - a method of geolocation targeting that narrows down your digital advertising focus to specific postal codes. 

We are very excited about this targeting tool, and so should you be. Precise advertising is extremely beneficial for growing awareness in a brand, and capabilities are becoming more intelligent and innovative. With postcode targeting, you will gather more granular data and real-time engagement, enabling you to identify real customer prospects and fine tune your target audiences.

It is a rapidly expanding marketing strategy, another subcategory of location-based targeting. Programmatic advertising is boosting digital marketing effectiveness, and coupling this with more precise targeting strategies will make your next campaign unrecognisably successful. 

In this guide we’ll look at postcode targeting, what it is, how it works, the benefits, and explain who should use it. With Eskimi, you can enjoy an unprecedented level of understanding of your target audience and how best to serve them. 

What is postcode targeting?

Postcode targeting represents a new level of efficiency in targeting your audience. Your ads will appear in only specific postcodes chosen by you. This will guarantee your ads will be exposed to people interested in your product, helping you increase profits and engagement, and refine your target audience further.

This is done based on a blend of demographics, visitation, and repeat user behaviour within an area, which in turn supplies you with customised and valuable mobile marketing results.

It is an essential tactic for businesses relying on footfall or home delivery, such as physical shops, ecommerce sites, or restaurants. Ecommerce could target areas where their competitors have physical locations, for example. Another instance could be targeting certain constituencies during an election campaign where a party is looking to connect with votes. They can identify areas their policies and promises would make impact, and focus their advertising there.  

A subcategory of geolocation 

Geolocation targeting uses location data to reach customers appropriate to their movement behaviour. When a user of your target audience is within the radius of your physical shop, you can implement your advertisements more meaningfully, at the right moment, to capture their attention. 

This could compel actual footfall and even drive sales. Location targeting can be done at many levels such as whole countries or specific radius in a city. This all depends on your goals, but geo-targeting is becoming essential to efficiently engage in mobile marketing today, as location targeting spend is projected to grow to as high as $38.7 billion in 2022.

How does it differ from other map targeting?

You may be confused about how postcode is different from other location-based targeting. In essence, it makes more effective use of location and customer data, addressing the need to refine targeting accuracy as brands and advertisers strive to reduce ad wastage. 

It seems similar to the geofence, which involves a virtual boundary around a certain radius. Geofencing uses location signals from mobile devices and exposes them to promotions as they enter an area and encourages them to visit a physical place.

The main difference is, rather than targeting mobile users with location-specific ads as they visit, postcode targets the intended content to those already in specific locations, such as residential neighbourhoods. For example, a food delivery business with limited transportation abilities could advertise only to the zipcode they serve. It is an excellent way to deduce enhanced information about your customers’ profile, such as age, income, lifestyle and gender. They may even live near other, untapped ideal profiles with shared demographic qualities.  

Almost 65% of location-based promotional spending is being wasted on ill-defined location target focus. Postal code targeting enhances personalisation opportunities; for example, as a network provider you could find the exact clients you need to serve promotions to by combining it with your 3 or 4G user database.

By reaching your customers where they spend the most time, you can reach a highly-specific group of your audience base and maximise your ad exposure, and crucially, bring them closer to the buying decision. We think it’s the best targeting method out there. 

How does it work?

Before you can benefit from postcodes, you must establish which ones will be effective for your brand strategies. Data analysis is more comprehensive than ever, so once a postcode is identified, it is simple to gain an in-depth understanding of certain neighbourhoods and the kinds of people living there.

There are GPS and Wi-Fi chips in every smartphone, and when location services are enabled, you can determine where the GPS spends time, trace the user’s behaviour, and from there determine their postcode. Apps are also a good way of finding user’s zip codes, as users often provide addresses, like geotargeting apps such as Uber. 

Over your advertising campaign, you can track and analyse who has seen your promotions compared to visiting your location with footfall technology. This, with programmatic capabilities, can be done in real-time. 

Who can use postcode targeting? 

There are a range of brands that could benefit from zip code targeting, and gain confidence their ads are not wasting impressions and being seen by the right people. 

Companies and brands with physical locations, such as local produce shops or restaurants are suited to postcode targeting, to gain familiarity with local residents and raise the urge to visit. 

High-end brands could benefit from this precise targeting, they could target their advertisements to affluent areas. You could also aim your advertisements at recently built residential complexes, for discounts on electricity or internet connections. 

Pop-up stores would benefit greatly, as they are in specific places for a limited amount of time. An acute campaign directly to their neighbours would guarantee a higher footfall for their time there.

What are the benefits?

You may be wondering about the actual profits from using this ultimate targeting strategy.

Optimised data

More than anything, the granular data you can gather about your audience is unprecedented. GPS helps avoid contradictory information about your users. From residence, daily routine, hobbies, to workplace and favourite places to go, you can build a perfect profile of your ideal customer.

Cost efficiency

Targeting one or a few zip codes raises your value for money as ROI will be more effective when you avoid wasting your budget on ineffective mass distribution. Once you discover a few effective postcodes, you can dedicate more or less of your budget to them. 

Improved customer-brand relationship

Because postcode targeting is solely based on customer behaviour and action, this technology can help you serve their needs better, and win more business by becoming known as a brand invested in their audience. Increase your conversions and gain meaningful connections with your customers.

Useful considerations

  • Not every postcode is suitable. The postcode could be too small to effectively target a meaningful audience. But it could be the opposite; an overcrowded postcode with divergent footfall can dilute your campaign’s effectiveness, such as multi-use buildings or clustered businesses. 
  • If your product is widely available, consider another strategy. Universal products, the likes of food or cosmetic products would be better served considering purchase history for targeting, for example. 
  • Test and adjust. It’s not wise to make grand assumptions about postcodes, income or interest demographics won't guarantee people’s reactions. You’ll be successful with these campaigns if you consider it a fact-finding mission, and adjust in the future. 

Choose zip code targeting with Eskimi

Unrefined data can lead to contradictory conclusions, often resulting in ads being wasted on unspecific placement. Postcode targeting can help. As location services get more accurate with the deployment of 5G, the data we gather about our customers can be used to serve their needs on a more personalised level. 

With Eskimi, you can operate postcode targeting through our DMP to get accurate and granular data for healthier campaign results. This will give them a better consumer experience, and optimise both your ad campaigns and your brand growth. 

If this guide has left you excited to implement postcode targeting in your next campaign, contact us to find out what we can do for you at Eskimi. Let’s grow your reach and optimise your budget together!

Philip is the CMO of Eskimi. When he’s not busy growing the Eskimi brand, he spends his time with family and playing ping pong.
Philip is the CMO of Eskimi. When he’s not busy growing the Eskimi brand, he spends his time with family and playing ping pong.
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