Local store marketing

Local store marketing,
explained properly.

LSM and LAM are the same idea under two names. One store, one trade area, one group of customers who live close enough to order. This is the plain version: what it covers, who runs it, why it stalls in big networks, and what to measure.

Definitions

Two names, one idea.

Local store marketing (LSM)

Local store marketing is everything an individual store does to win customers inside its own trade area. It is decided at store level, usually paid for at store level, and measured against that store's sales. The term is most common in quick service restaurants, fast food and other franchise networks where each site has its own catchment.

Local area marketing (LAM)

Local area marketing is marketing aimed at a defined geographic area rather than a national audience. It is the same activity described from the other side. Some brands use LAM for the head office run program and LSM for what a store does on its own, but in day to day use the two terms mean the same thing.

National and local

They are not the same job.

Most of the friction in a multi site network comes from treating national and local marketing as one budget with one owner. They are funded differently, decided differently and judged differently.

National marketingLocal store marketing
Who decidesHead office brand teamThe store operator or franchisee
Who paysThe national marketing fund, from a levy on salesThe store, from its own budget
What it is forBrand awareness, national offers, media weightFilling this store, this month, in this suburb
Typical channelsTV, BVOD, national digital, national searchLocal social, Maps, radius targeting, print, community
Measured onBrand metrics and total network salesOne store's orders and sales
Moves inQuartersDays

Swipe the table sideways to see the rest.

What it covers

Three kinds of local activity.

Paid local reach

Ads bought against a radius or a delivery area around one site.

  • Social feed, stories and reels in the catchment
  • Sponsored presence on Google Maps
  • Discover and YouTube for people nearby
  • Store opening and new product pushes

Owned local presence

The things a store already has and mostly does not use.

  • The store's own Facebook Page and Instagram
  • Its Google Business Profile
  • Google reviews, and asking for them
  • Local landing pages and store finder listings

Physical and community

Old fashioned, still works, still hard to organise centrally.

  • Letterbox drops and flyers
  • Window and in store posters
  • Sports clubs, schools and local sponsorship
  • Opening events and sampling
The hard part

Why local store marketing stalls in big networks.

It is rarely a lack of will. Four things get in the way, and they get worse the more stores you have.

1. The operator has a store to run

Marketing sits behind the roster, the stock order and whoever called in sick. Anything that takes an afternoon will not happen, no matter how good it is.

2. Ad platforms take skill nobody has spare

Doing it properly means learning at least two ad managers, audience settings, creative specs and billing. A store operator should not have to, and mostly will not.

3. Brand safety turns into a queue

Head office cannot check every local ad, so it either says no to everything or finds out afterwards. Both answers cost the network money.

4. Nobody can see what is happening

When each store does its own thing on its own account, head office has no view of spend, reach or results. What cannot be seen cannot be managed or improved.

What works

Make the right thing the easy thing.

Every network that gets local marketing working at scale ends up doing roughly the same four things, whatever tool they use.

Measuring it

What a store can fairly be held to.

MeasureWhat it tells youWho should watch it
Reach in the catchmentThe ad went to the right people near the storeStore operator
Cost per thousand reachedWhether the local buy is priced sanelyHead office
Orders in the campaign windowThe one that matters to the operatorStore operator
Return on ad spend, per storeWhether local spend pays for itselfBoth
Stores that launched nothingThe real adoption number for the networkHead office
Google review count and ratingSlow moving, and it compoundsBoth

Swipe the table sideways to see the rest.

Common questions

Local store marketing, answered.

What does LSM stand for in marketing?

LSM stands for local store marketing. It is everything a single store does to bring in customers from its own catchment area, run and paid for at store level rather than nationally.

Is local area marketing (LAM) the same as local store marketing (LSM)?

In practice, yes. LSM describes the activity from the store's side and LAM describes it from the area's side. Some brands use LAM for the head office program and LSM for what an individual store does, but most people use the two terms interchangeably.

Who pays for local store marketing in a franchise?

Usually the franchisee, from their own store budget, and often as a minimum spend written into the franchise agreement. That is separate from the national marketing fund, which every store contributes to as a percentage of sales and which head office spends on national campaigns.

Should individual stores run their own Google search ads?

Usually not, if the brand already runs national search. Store level search ads enter the same auctions on the same keywords, so the network bids against itself and everyone's cost per click goes up. Local budgets do more on surfaces national campaigns do not saturate, such as Google Maps, Discover, YouTube and social feeds.

How much should a single store spend on local marketing?

There is no single right number, but most quick service brands land somewhere between one and three per cent of store sales, and franchise agreements often set a minimum. What matters more than the number is that the money goes out consistently rather than in one panic burst when sales dip.

How do you measure local store marketing?

At store level, against store sales. Reach and impressions tell you the ad ran. Orders, delivered sales and return on ad spend for that store over the campaign window tell you whether it worked. If head office cannot see those numbers per store, the program cannot be managed.

Does local marketing still matter when most orders come through an app?

Yes, and arguably more. App orders still come from people who live inside one store's delivery area, and the decision about which brand to open is made before the app is opened. Local marketing is what puts the store in that decision.

The whole guide

Everything on local marketing for franchise networks

Local store marketing, for a whole network.

See how a store launches an on brand local campaign in two minutes.

Book a demo