How can empty shops be used for renting?

Space owners after owning a space should start getting creative and start thinking out of the box when the retail space remains vacant most of the time. Not only some empty spaces strain the property owner but it also starts creating an eye store in the community. As an easy way to remedy both the problems and to lease out the space out on a short-term basis.

Many businesses lend themselves to this kind of temporary occupancy. Many shops give prop-up two to three months in advance spaces too. But some of the accounts are not the only ones who need temporary retail space.

Related Topic: How empty classrooms can be ued for renting

Marketers use pop-ups to sell their wares

Some marketers who have new products use completely new business, which will also be used for lease, specifically short term spaces to test the products or new businesses concept to determine it well. If any of the products or businesses are susceptible to some localized influences, then the market may lease down spaces in multiple markets to make sure it is covered in the entire demographics.

The empty shop’s space market has become popular with both landlords and tenants that have multiple sites online catering to landlords who want to list the properties as well as the tenants who are searching for the right opportunities. One such popular site wherein you can list your space would be www.myrsa.in to book property spaces.

The length of leases and other consideration

The lease for such spaces usually stays for six weeks to one year, with so many non-seasonal retailers willing to sign in the month-to-month leases there could result in long-term tenancy.

This concept works the best where there is little or no space in the modification required. Generally, just by adding desks and chairs or some kind of display to fix it is all that is required. These simple additions and changes are easily implemented than torn down. Extreme modifications are not a stumbling block because tenants don’t want an easy move-in move-out phase, and the landlords want to become little and have no refit between the tenants.

The pros and cons for landlords

While there is a long-term lease commitment, there is a pop-up operation that is not wholly unattractive for landlords. That might be because the prospect of bringing some rent is better than having no rent at all. The aesthetic value that is there in the pop-up operation can add a location that would not be overlooked. It can also be used to help consumer confidence and show the retail space as being desirable. The short space to these leases can also give huge benefits to landlords by offering immediate mortgage assistance while leaving the potential prospects open for long-term leasers once in the market become favorable.

When to search for an empty shop space

There is no ideal time or season to search for an empty shop space if you are in a need to grow your business and you don’t have much space for it then you can search for more such spaces. For example, holiday decoration stores and gourmet goods, and gift basket providers need space for in the upcoming holiday season and that is usually in the summer season. For more information on empty spaces and more, you can visit www.myrsa.in

August 11, 2021 0

How empty classrooms can be used for renting

Whether you are into a small business that is based out in a retail office or space, it is quite possible you are spending money on that particular space rather than making money on every square foot.

There are many ways empty classrooms can be used for small businesses. There are many strategies one can put to use in the right way to help earn extra revenue for the business. All it takes is imagination, brainstorming, and the right marketing.

To put it into place, here are few things to consider to bring in that extra revenue with the space for business.

Lease out extra desks/ classroom space

Just like you, many small business owners are starting a small business on a low budget. They may start by working at the kitchen table to do their daily business or by sitting in a fancy Starbucks café. But with great concentration and growth, there has to be a small space of their own to do their business with themselves or with their small team.

It is very uncommon to find a space like an empty classroom to do their business who would find success to rent or buy so that they can grow into. Classrooms at this time can be used for businesses, meetings, important business discussions, etc. At the start, it can look a little unusual but with such spaces, small businesses can get the opportunity to grow their team and their business at the same time. The perfect space may be utilized for the business sometime in the future.

Set up the extra space in the classroom space as a rental or lease an empty desk in the back office. You can even make arrangements to have renters and make the best use of the classroom equipment’s like a board to explain a few things, tables to sit, etc. You can even arrange office during weekends or in the evenings when you and the staff aren’t present in the space.

Related Topic: Long term renting benefits

Training classes and seminars

Does your house have enough space to hold seminars or training coaching places? Or does it have a classroom set up with a marker board and projector screen display? You can design workshops, seminars, or even training in the empty classroom. You can handle seminars on how to better handle finances, a home decorating workshop, and training clients can come to learn how better to use your product.

Another idea if your space is suitable and desirable as a training center is to rent it out for other businesses for training and seminars. Using an extra space for utilization could bring a considerable amount of revenue to your business.

Rent the equipment’s present in the classroom

Do you have special equipment or stationery that can be used for business? If you have a piece of special woodworking equipment, it can be best used for other businesses.

The equipment present in an empty classroom can be useful for others. There is another catering company starting that specializes in wedding cupcakes. There can be the use of the equipment once a week or every day by another specific person. You can rent out the equipment during off-hours as well. You can help other small business owners to succeed and help them bring additional revenue. This goes for any other type of business or individual who needs access to special equipment that you may have.

August 4, 2021 0

What activities can be done in a short term renting space?

Maximum use of the flexibility in the use of short-term rental space is the perfect opportunity for retailers and e-commerce brands to experiment and be quite impactful. Short-term retail strategies are on the high rise, as its low-risk experimental play could give you huge rewards and allow you to earn extra income. As a marketing tool, these strategies are ruling retail this year, be it the prop stores or the huge physical retailers.

Renting a space in short term renting space is a trend that is here to stay and affects consumer views for a positive outcome. Here are few activities you can benefit from short-term renting space.

Expand new market– Short-term rentals are a great opportunity to expand a brand into a new market or test a physical location. Many brands have experimented with such concepts in multiple cities, eventually leasing their business in a specific location. A person can rent such space to grow their small business and can help them reach wonders.

Renters can be used as an experiment- With short-term renting, retailers and renters can be considered as temporary retail to experiment with products, collection, and collaborations. Using a short-term renting space as a smart way for brands to announce temporary collaborations and collections is well.

Small-time activities- Businesses with small activities like dance classes, coaching classes, Office meetings, etc. can be performed in a short-term renting space. Short-term renting spaces like empty clubhouses, empty office spaces, open grounds, etc. can be used as short-term renting space.

Putting out your new clothing brand/shopping- Clothing workshops and shopping can be one of the best use for a short-term renting benefit. If you are looking to put out a new clothing workshop or in a store temporarily, then short-term renting spaces can be considered as one of the best use. You can call out your customers to visit the store during that period and then you can sign in a contract with the rental space owner or even extend the lease according to your requirement.

Related Topic: Long term renting benefits

Workshops and coaching centers- There are many people with small businesses or learning willing to conduct workshops for their potential customers and sometimes, your house can be considered small for conducting your workshops. Empty spaces with short-term renting options can help you start your workshop and help you grow your business reach wonders. While we are talking about workshops, coaching centers can be conducted in short-term renting space, wherein a certain amount of teachers can teach in a certain period and one can book the slot accordingly.

Work from home might be difficult- Because of the pandemic, work from home has been increased and has been the only option for all the employees. But for some people work from home can be very chaotic since everyone in the house is working from home. In such cases, empty spaces can be considered as one of the best options for such employees to come in and work every day wherein the rent wouldn’t cost much too. Empty spaces near your house can be considered one of the best options at this time with good maintenance.

July 27, 2021 0

What activities can be done on long-term renting spaces?

A good long-term activity program in a long-term space can be beneficial for a long time. There are many benefits of long-term renting spaces. It can be either renting a villa for people to visit on weekends. Many activities can be performed. From conducting medical facilities to renting out an empty villa, there are many benefits to it.

Villa– weekend gateway- While many people especially teens, their favorite vacation spot for short time would be chilling on a villa with a good view. Taking a villa in a good place with a good view would give you a good revenue every month. At the peak time, your revenue would just boost up. For example, if you would keep 20,000 for a night on weekends and lesser than that on weekdays but the revenue that would earn from it would be a great opportunity. But apart from that, maintenance and hiring a full-time host for the villa would cost for the villa.

Related Topic: Long term renting benefits

Medical facilities– There are many spaces wherein you can make benefits to it. Medical facilities and program related to it can be used in long-term renting space. Facilities like providing medicines, a monthly check, etc. This will benefit not just the space owner but also the medical program facilities to grow their business.

Shops and storage rooms- When we talk about shops, we can consider rental grocery shops, storage rooms. Long-term renting can be best used for those activities too. As a space owner, you can earn a good amount of extra revenue by renting out shops and storage rooms. Big businesses find new spaces to store their products and your extra space can be best used for the same. Start contract for 2 to 3 years and then after the lease is over, you can increase the rent by informing or discussing it with the tenants.

Related Topic: Short term renting benefits

Tailoring and clothing- Small businesses like tailoring and clothing businesses find out spaces for them to make clothes for their customers with minimum space and deliver the product on time. With proper documentation and credibility, you can give your space for such activities.

Tuitions and coaching centers- Coaching centers can be best used on a long-term renting space. Coaching and tuitions need a good amount of crowd for coaching and teaching. For a huge crowd like this, there can be a requirement for a huge space for a long period. After the lease is over after 2 years, you can renew the documentation and increase the rent accordingly.

Bottom line:

Long-term renting benefits are several and many activities can be performed in a long-term renting space that would benefit the owner and for the tenant to help them grow their business.

July 19, 2021 0

Short term renting benefits

Many people might look to rent their empty spaces for a short period. But there might be some people who are unaware of the benefits of short-term renting, not just for space owners but also for tenants. So are you considering short-term rental? We can think of some of the great reasons to test this. Many advantages that can be kept in mind. Let’s get those all on the table. The pros of the short-term renting platform.

Flexibility– You can choose days, weeks, and months to rent a space. There are many options to benefit from space while you can enjoy and one of the options would be, while you are traveling at the drop of a hat, you can make money while you are gone.

Give more privacy and more space than traditional hotels- Short-term renting can be considered perfect for families. There are times that families need a short-term vacation plan for weekends. Renting a villa is one of the best options for earning extra revenue.

Brings more cash than long-term renting- The math for it is pretty easy, 1 vacation per week would cost 15,000 Vs 15,000 a month to rent for a year. It will help you earn more in a week than what you will earn in a whole year.

The deductions– There are many common deductions for rental owners. The cleaning and maintenance that comes in the picture. Hiring a full-time housekeeper would also include it. Maintenance, Insurance, Utilities are just among them. With all these deductions you could record a whole lot of loss and avoid taxes altogether.

Tax breaks- The best home-related tax breaks go to short-term renting owners. Before you get into the tax detail you should know the tax laws of your state.

Wear and tear on the property- When renters are going in and out frequently, there can be small repairs and damages that can be taken care of before they turn into big problems.

Social benefits- There are many people and opportunities out there that space can be used for social benefits too. One of such things includes travel and tourism. Your next short-term rental acquaintances can turn into lifelong friendships.

Earning potential- Short-term renting can be extremely profitable as a property manager you can keep changing the price as you see fit depending on the demand. If there is a music festival or a popular sporting event in the town you can easily double or triple your regular price in that period. Travelers are expected to pay premium prices over holidays, special events, and in the high season, so this period can be considered a jackpot for you as you can make the bulk of your income during these times.

Contribution to the sharing economy– We hear a lot these days about sharing economy and its positive effects on society. By giving the property to short-term vacations, you are showing that you are an innovator who would help you contribute to the modern way of living and thinking.

Property management– Advancements in technology such as smart apps and smart locks have made it easier to manage vacation rentals even if you are not living nearby.

July 2, 2021 0

SHORT TERM RENTING Vs. LONG TERM RENTING (PROS & CONS)

When investing in real estate for rental purposes, owners should decide what they want to do with their space. Many factors can help owners and managers to estimate whether they should choose to hire long-term or short-term. Most of the time, this decision is easily made and depends on the nature of your own space and what you want to achieve. However there are a few advantages and disadvantages to these two methods of hiring let’s explain the advantages and disadvantages of the two:

What is a temporary or short term rental?

Before anything else, let’s get acquainted with the definition of temporary leases. Time rental leases are short-term leases. Depending on the owner, rental property and many other items, these buildings are rented weekly or nightly. Many short-term rental owners rent their property for most of the year when they do not use it themselves; it has become a popular alternative to many problems.

Related Post: How much is rent in a mall in Mumbai?

Benefits of the Short term rental :

While long-term employment offers consistent income and is generally easier to manage, there are several benefits to considering short-term renting instead:

1. High rental income
Not only can you set the changing prices depending on your season high and low, but you can also set the duration of your most popular time of the year to ensure maximum profit.

2. More flexibility
For owners who rent their properties for a short period of time, there are many more variables involved for you and your own. You can directly block calendar times that you want to keep free for personal use without disturbing anyone.

3. Minor aging
Typically, the duration of a rental contract ranges from a few days to a few weeks. Welcoming people with short bursts like these ensures that person your property simply uses your property and do not redesign it.

4. Tax breaks and deductions
Many rental owners are entitled to certain tax breaks or even withholding costs because property is not permitted for a long time. Be sure to check your local laws and regulations in this regard.

5. Contribute to a sharing economy
We hear a lot these days about the economy being shared and its positive effects on the wider community. By allowing your space to be shortly used by others, you show that you are a designer who helps to contribute to this modern way of life and thinking.

6. Changing the management of assets
Advances in technology, such as smart apps or smart locks, have made it easier to manage rentals or made the process easier through websites like www.myrsa.in .

Challenges of short-term rentals
When managing temporary employment, you will need to consider local laws, property maintenance and slower periods.

1. More maintenance and development
The owner needs to keep inventory safe or he may receive negative updates. This includes more than just regular repairs, such as plumbing and paint repairs, as well as technological changes and modern inventions. You will need to renew your rental services more often to include all essentials and it can come at a higher price.

2. Guaranteed income
One setback for short-term rental property owners is no guaranteed income eg no fixed or booked leases. Sometimes there is no rent for one month or so.

3. Competition from surrounding areas
Unlike the market, when apartments and houses are full of interest by tenants, the temporary market sees many competitors. This can put some owners at a disadvantage as such competition for rent may be rampant in this area.

4. There are many things you can do
The owners of temporary rental properties have to take care of their property so there are a lot of things to take care of.

What is Long-term rental?

Unlike temporary rental, long-term rental usually refers to what is rented for a period of one month or more. Whether it’s a full space or just one room for rent, typically, tenants pay the landlord each month and usually take care of other expenses such as state debt.

Benefits of Long-term rental:

There are certain benefits to investing in long-term properties; Here are a few major benefits:
1. Fixed income
One of the key benefits of renting your property for a long time is knowing that you have a monthly rental benefit you can rely on. This can help relieve stress for new homeowners who have many other expenses that they have to worry about. In addition, long-term employers are often obliged to pay monthly and three-month utility bills for electricity, gas, water and even the internet.

2. Easy to manage
Whether you choose to hire a local manager or manage the property yourself, it will require less time than a temporary hire. You do not need to promote the rental property so much, deal with frequent outages or make sure it is ready for rent.

3. Low profit
If you hire for a long time, you will find that you will be less anxious when it comes to administrative tasks such as paperwork, key allocation, and marketing. Once your employer has signed a lease, you know how long (somewhat) you can expect when they will stay. You just need to worry about filling in the blanks and if you know it will come out.

4. There is no need to provide
Some (though not all) long-term tenants brought their furniture to the tow. This can make the decision easier if you are considering renting your furniture without furniture. Not only will you have a guaranteed monthly rental income coming in, but you will also not need to take care of new home furnishings.

6. You can charge a higher deposit
If you are worried about good rental details, such as insurance, lease agreements and security fees, then there is no need to panic. With long-term rental, you can usually charge a high security deposit, which will be refunded to the visitor at the end of the lease unless the property is likely to be damaged. These funds can give owners more peace of mind when it comes to renting their property.

Related Post: What is Location-Based Marketing?

Challenges to long-term vacation rentals
Some of the challenges that need to be addressed are low income levels and high levels of human settlements. Other negatives include:

1. Low lead power
Long-term rental properties are usually reduced by 40 percent. Charging at premium rates is not always possible.

2. The owner has little flexibility
Unfortunately, in the world of long-term employment, there is no automatic escape from the contract. If you have an employer in your home, you cannot ask them to leave for the weekend here and there.

3. Minimal control of assets
Most of the time, there is nothing wrong with hiring. There is, however, a big difference between short-term and long-term options when it comes to evaluating your assets.With temporary rental, the owners benefit from being able to inspect the property within the rental, to check that everything is in order and that nothing is broken or damaged. With long-term employment, however, it is very difficult. You will need to provide great notice before passing to get regular maintenance and safety checks.

4. Restrictions in your area / city
Depending on the type of property and location, there will be different rules, restrictions and licenses that you need to deal with before renting out for a long time, which can be more difficult and expensive than renting a temporary one.

5. A long process of finding the right employer
When someone is going to stay in your home for a long time, you want to make sure it fits well. But if you look at the time you will spend testing and evaluating indicators before making a deal, this can soon become a very long process. On the contrary, temporary renting is usually a much simpler process – especially with tools like quick bookings.

April 21, 2021 0

Will physical retail have a role to play in a Post-COVID world?

The ongoing Covid-19 crisis has profoundly impacted many facets of our lives. The way we shop is no exception. Yet what does the pandemic ‘s effect on physical retail futures mean?

With local laws curtailing our movements at the height of the crisis (and trapping us in our homes in many countries), the way we shopped changed drastically. Restricted high streets and malls, and ecommerce underwent tremendous upliftment. Now that the freeze is easing across the globe, the question arises – does physical retail still have a part to play, and if so, what’s going to be different?

The short answer to that is yes. Physical retail should continue to play an significant part in the relationship between customers and brands. Its dynamics may change slightly, but our high streets do not go anywhere and brands will continue to look at physical retail as a mighty opportunity. What’s important to think is which customer preferences in a post-Covid environment will survive, and which will revert.

We’ll take a look at what’s changed in this article, what it means for physical retail and how brands can adapt.

What’s changed?

It’s no secret that ecommerce has seen a big boom in the last few months. As McKinsey’s consulting group points out, retail will definitely see a gradual rise in online shopping and in areas that had been predominantly store-based in the past. That would be attributed in part to consumers who previously preferred shopping offline, such as baby boomers and Gen Z, being more comfortable with shopping online. Particularly for the supermarket ‘routine’ such as groceries. If they have done it once or twice it is going to become normal.

According to Forbes, these new consumer habits are likely to persist with an anticipated 20 per cent annual growth in ecommerce across retail as a whole, compared with 15 per cent pre-Covid

In fact this shouldn’t be a big surprise. That was a phenomenon that we’ve seen already. The last few months may have actually accelerated the trend but there is still a vital part to play in physical retail. This is because while ecommerce may have benefited from being

Nonetheless. Although ecommerce success in recent months may have benefited from being a fast and convenient alternative, it can not compete with in-store experience.

What’s the physical retail getting to the party?
Ecommerce is amazing. What doesn’t want the convenience of their own home to do all their dull ‘routine’ shopping? It’s smoother, quicker and sometimes cheaper. Yet we need to note before we get carried away that this is not a one-size-fits-all case.

Everything this comes down to the experience these days. Name the industry and you’ll find that expertise is at some stage the main differentiator. This is no different in trade. Improvements in ecommerce capability are generally geared towards increasing efficiency and reducing friction. That effectiveness comes at the expense of experience and the key is experience.

Physical stores offer the opportunity to provide interactions that just can not compete with the digital world. There is no alternative. For precisely this reason, digital brands have launched physical stores all over the world over the last few years.

What’s more, it’s obvious that even in the last few months there’s been a big shift to digital, there’s still a need for an experience above and above what a typical ecommerce website offers. For example, here at Myrsa we saw a tenfold increase in inquiries about our Virtual Reality Stores as customers look for ways to differentiate and deliver unique, branded experiences.

That is why we are confident physical retail will recover as consumer demand picks up. People are going to return to the high street, back to physical retailing. Yet while we’re sure that physical retail space for rent will return as a retail force, we ‘re also positive it won’t look exactly the same.

What will become of physical retail in a post-covid world?
We need to think about what it will look like in the short term and what it will look like in the long term to answer this issue. The perspective of the short term is interesting; with the shops opening gradually across the globe, we are still catching glimpses of what is to come. We will go through this in more depth in a separate article but it is fair to conclude that physical retail will concentrate on fulfilling consumer standards about hygiene and health over the next few months. Consider PPE, hand sanitiser, and shopping for appointments.

The long-term view is even more compelling. When brands use physical to attract new consumers and offer excellent brand experiences, we ‘re likely to see even more of a shift to experiential retail. They need to work on the halo effect to do this – using both the physical and the digital to deliver a seamless customer experience.

In a recent interview, José Neves, founder and CEO of Farfetch’s online luxury shopping platform, took this even further when he said: “Brick-and-mortar digitization was ‘good to have’ in the eyes of many brands and retailers but should be pushed to a ‘must have’”

The Covid-19 crisis has increased transition pace, and the need for reform. Brands capable of integrating online and offline to gain advantages on both sides would be competitive with physical retail (so-called ‘phygital’).

Yet not all digital upgrades. Changed the role of physical retailing. Or rather, it has accelerated the change that it was already experiencing. Stores will focus less on shifting stock and generating revenue, and more on building customer loyalty, gathering insight into marketing and reaching new audiences. More marketing … Less transactional.

This is a phenomenon we’ve seen in the emergence of pop-ups as brand trial sites, run product releases and gain marketing feedback in short-term environments designed to offer outstanding experiences.

We expect that we’ll see less but better flagship stores over the next few years coupled with plenty of flexible retail (like pop-ups shop on rent) to highlight brands and goods, draw new buyers, create brand loyalty and improve online sales. We ‘re going to see versatile retailing in affluent areas where you’d never have seen it before.

Such physical stores can offer less items and sell less, but can have even more entertainment.

Entertainment and the experience is everything.

August 24, 2020 0

How has Coronavirus Impacted the Indian Real Estate Industry?

The outbreak of coronavirus in Wuhan, China, has affected market sentiment around the world. As allied companies such as steel, heavy machinery, and other raw materials are heavily dependent on Chinese imports, the Indian real estate industry would also be indirectly affected.

Coronavirus has infected more than 60,000 people worldwide and has claimed over 1,400 lives in China. Business sentiment is severely affected with it being declared a global health emergency by the World Health Organization (WHO). The outbreak has created a lot of speculation regarding trade and imports, not just in China but around the world. Nor is the real estate industry spared. Traders are cautious about visiting mainland China and are sceptical about cutting production in the months ahead. This will have a direct bearing on the steel prices and other articles used in India’s construction industry.

Let us address in depth the possible impact of coronavirus on Indian immovable property and related industries.

Why would it affect the Indian Real Estate sector?

India imports extensively products used in Chinese construction activities. Some of them are-

Iron and steel goods
Industrial building equipment
Electronic equipment
Solar panels
Plastic and fibre materials

China remained the largest steel producer with a production capacity of 928.38 million tonnes (MT) in 2018. Although India is the second-largest producer, its production capacity, which stands at 106 million tonnes, lags severely. That heavy reliance on China for steel and steel products is an industry concern. With demand going down in China, prices in the allied industries are expected to increase, thus increasing costs and reducing the profit margins of Indian real estate developers. The slowdown in China’s construction industry will bring downward pressure on world metal prices.

More than 300 Fortune 500 firms worked in Wuhan, China, in 2019, according to a recent report by CBRE. The epidemic will force businesses to provide more flexible work arrangements like’ Work from home’ rather than co-working spaces. The companies could delay real estate decisions and limit new launches. The paper, however, points out that the outbreak would affect mainland China more, and neighbouring countries may have only a temporary dip in business activities.

One chance?

Looking from the Indian business perspective, the coronavirus outbreak could be an opportunity for Indian companies to increase their production capacity and give the “Make in India” campaign a boost.

The Indian government encourages steel companies to increase production capacity and grab a greater share of the market. In the current scenario, the Ministry of Steel, Government of India, is preparing a strategy paper to produce 10 million tons of special steel at the cost of 50,000 crore Rs with 50,000 job potential.

Given the skewing of the Chinese supply lines, the industry has an opportunity to explore other markets to procure raw material and reduce reliance on Chinese imports. That could be a veiled blessing for the indigenous manufacture of imported goods such as metal panels, steel bars, heavy machinery and coke.

In addition, the manufacturing companies of solar panels can also take advantage of the reduced supply and increase production to reduce long-term costs.

Echoing the same sentiments, KW Group Managing Director Pankaj Kumar Jain says, “The effect of coronavirus outbreak on Indian immovable industry will be indirect. Though China is directly affected, supply-side constraints offer an opportunity to explore other avenues for procurement of raw materials. The industry is already facing the headwinds of timid demand and global economic slowdown. While the outbreak in the Indian scenario is not yet a threat, the government must take tough steps to prevent the spread of infection so that the business feeling is not further affected.

To sum up, the planet has also faced similar outbreaks in the past, such as SARS virus, bird flu, etc., and has recovered successfully. Any calamity represents an opportunity to reach new heights. Indian real estate and related manufacturing industries have to find scenario positivity and benefit from increased production and indigenous innovation. In times of crisis, the government would do well to stop further virus proliferation and handle the industry.

February 27, 2020 0

What is Location-Based Marketing?

Location-based marketing is a rapidly growing marketing strategy, located right in the middle of the advertisement ecosystem.

In most but not all sectors this advanced marketing approach is a perfect fit. Here’s what makes location-based marketing successful and a few pitfalls you’ll need to avoid.

Marketing based on location: Wherever it operates.

Brands with physical locations are the best fit for location-based marketing, which is evident but worth repeating at all times. Such types of businesses are best suited for geotargeting strategies because location-based marketing and analytics firms will geofence locations to identify the audiences visiting their locations. Marketers build audiences for their geo-targeted ads based on real-world experiences, rather than shares and follow on social media. Using this approach, advertisers ensure that they reach the right audience and deliver appropriate content at the right time.

So who will successfully use the geotargeting campaigns? It covers all retail outlets, catering and dining establishments, grocers, and the list goes on. Below are just a few more examples.

Auto dealers

Auto dealers also profit from geotargeting campaigns which can reach customers of their competitors, especially geo-conquesting. In their final phase of visiting auto dealers, their large retail presence, high-value price tag and purchasing process force advertisers to work hard to reach the car shoppers.

Pop-ups and seasonal stores

The businesses and brands with seasonal stores and time-specific events often create impactful geotargeting strategies when they meet the right requirements. Talk of pop-up tax bureaux and holiday shops.

Marketers for these brands use publics seen at their previous year locations to offer ads to the same audience, enabling return visits the following year. To encourage future ticket purchases, professional and college sports teams use location-based targeting to meet the audiences who visit their stadiums each season. A trade show that takes place in a large venue over several days, attracting thousands of attendees, is an effective way to capture a business-to-business public.

Tourism boards

We have also seen travel and tourism boards use geo-targeted campaigns with success. For example, a marketer who works to encourage tourism in Charleston, SC, may decide to convince Savannah, GA tourists to visit their location next summer instead.

Ecommerce companies

In some cases, marketers at e-commerce firms and consumer packaged goods (CPG) firms can also use location-based marketing. Whether they have physical retail stores or not, eCommerce companies are competing for customers who visit rivals that have shops. Likewise, businesses that stock items in specific stores may use geotargeting for consumer-packaged-goods (CPG). A business with a high-end hair care product that can only be sold at salons should use location-based marketing to target customers who frequent those salons.

Location-based marketing: What to avoid

Those who use every targeting technique know that there are limitations to each strategy and location-based marketing is no different. These restrictions can be in terms of both data quality and quantity, as well as regulatory and compliance limitations.

Locations that don’t scale

The most common obstacle to build an effective location-driven campaign is to discover that places are not going to scale up to create a substantial audience. This difficulty can come from a variety of issues like choosing a single location to examine without heavy foot traffic, events that don’t last long enough to attract the right audience or smaller markets with limited data to start with.

Marketers also sometimes consider location-based audiences difficult when companies are clustered closely together or on top of each other, as in malls or multi-use buildings. It is difficult to create a market for a store located on the street level of an apartment building, or tourists to an office located on a skyscraper’s 12th floor. Marketing and analytics firms based on location may not be able to determine the difference of who is a shopper and who lives or works on the floors above or below the desired location.

Products or services available everywhere

Recall an example of this high-end hair care product? If it’s only available in certain salons, then ads based on the location will work well. But if it’s available somewhere, the plan would just not work.

Goods that are omnipresent, and can be sold in a variety of locations — think bubble gum, soft drinks, pet food — do not benefit from observations derived from a distance. Such advertisers should use other targeting strategies to reach their customers more efficiently, such as demographics and buying history.

Businesses with sensitive data

Considering the sensitive nature of the data, brands at certain places, such as healthcare facilities, can pose another challenge for location-based campaigns. Compliance companies such as the Network Advertising Initiative, the Digital Advertising Alliance, and TrustArc have membership requirements that stipulate appropriate business practices and how their member firms will treat opt-in authorisations. We play a vital role in providing protections for customers in the absence of robust federal legislation.

Usually, adhering to these codes of conduct, location-based marketing firms do not encourage advertisers to build markets around sensitive areas, especially related to health care, or participate in any discriminatory practices. These same principles apply to the right to personally track or target another person. Marketers have no desire or motive to target one market, but rather large audience cohorts which exhibit similar behaviours or characteristics.

What’s next for location-based marketing?

There are three important elements in the future for location-based marketing: legislation, the emergence of new data sources, and attribution.

The end goal is a standardized structure that voluntarily welcomes both consumers and businesses, and one that gives greater clarity and control over data practices across the entire data ecosystem.

The 5 G rollout would create massive sources of highly accurate location data, combined with the introduction of billions of new sensors over the Internet of Things. The 5 G towers must be more tightly grouped together than the current cell phone towers. Such finer clustering means cell phone carriers can triangulate position with a greater degree of precision than they can do today. 5 G also offers quicker upload and download rates, driving the proliferation of more internet-connected devices across a variety of products and industries. As these billions of sensors come online, they will not only produce location data but also other valuable data sources to track the use, usage and life cycle of goods. It is yet to be determined how advertisers, academics, and regulatory bodies interpret, evaluate, and use the more granular data.

Finally, advertisers will be gradually held accountable for their ad spend, requiring evidence that their ad spend results in new foot traffic and sales. We’re a long way from demonstrating that digital ads, and most other advertising formats, have resulted in actual sales in the shop. There are just too many unconnected silos of data to put meaningful and statistically relevant findings together. The ad seen on TV can not tell your phone or laptop that it has also been watched, while the point-of-sale or online checkout system can not alert the prior touchpoints to confirm that the sale has taken place. Given these challenges of tying online ads to offline sales, when using location data, marketers adopt a macroeconomic view of attribution. They assess how their campaigns affect foot traffic at their own locations, as well as competitors, as another data point to measure the effectiveness of their ad spending.

The Last Line? Such improvements are all new opportunities. It is because of its efficiency that advertisers can continue to invest in location-based marketing. Understanding what works and what isn’t the basis for any successful campaign.

Myrsa will help these marketers to easily find temporary rental spaces in high footfall areas. Register your Brand with Myrsa and start your promotional activities now.

February 21, 2020 0

Office rentals set to rise faster in Bangalore

Even as the Indian real estate sector continues to experience a downturn, cities such as Bengaluru and Mumbai are expected to attract healthy office rentals in 2020, mainly backed by rapid IT industry growth, a study said.

Beating not only Delhi and Mumbai but also Singapore and Hong Kong, according to a survey, the rental office market in Bengaluru is now the highest performing one in the Asia Pacific. While rentals in Bengaluru are now lower than BKC from Mumbai and Connaught Place from Delhi, Bengaluru posted the highest 17.6 per cent rental rise.

Due to the availability of the right talent pool and new office assets at comparatively low rents, multinationals continued to expand robustly, especially in Bengaluru. When demand for office space is expected to increase in 2020, we expect the trend to continue for these markets.

In the first half of 2019, the IT industry accounted for 35% of the total volume of transactions across the top eight cities, most evident in Bengaluru, which recorded a 14% rental increase in January-June (H1) 2019.

Grade-A office rents across the Asia-Pacific region are expected to fall by as much as 3 per cent in 2020, compared to a 0.6 per cent increase in the first nine months of 2019, as occupier demand continues to weaken.

Bengaluru’s central business district (CBD) was the best-performing Asia Pacific sector in July-September (Q3) 2019 with 17.6 per cent rental growth, the report said.

Connaught Place’s CBDs in NCR and Bandra Kurla Complex in Mumbai were the 7th and 11th fastest-growing prime office markets in the Asia-Pacific region, with 4.4% and 2% year-on-year rental growth respectively, it said in Q3 2019.

Myrsa is an online platform where you can find commercial spaces for rent on a temporary basis.

December 26, 2019 0

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