Instagram Location Ads Help Makassar Culinary MSMEs Bring Online Viewers to Physical Stores
A new study from Universitas Negeri Makassar reveals that culinary micro, small, and medium enterprises (MSMEs) in Makassar are increasingly using Instagram’s location-based advertising tools to turn online engagement into direct customer visits. The research was conducted by Dwiyanti, Mildayanti, and Agung Muliaman Anas and published in 2026 in the International Journal of Applied and Advanced Multidisciplinary Research. The findings show that geotagging and radius-based ads can significantly increase local consumer visits to food businesses in the city. The study arrives at a time when competition among culinary businesses in Makassar is intensifying. Many small food entrepreneurs are competing not only with local rivals but also with larger franchises that have stronger marketing budgets. In this environment, Instagram’s location-based advertising (LBA) has emerged as a practical tool that allows small businesses to target nearby customers without spending heavily on broad advertising campaigns. According to the researchers, the use of location-specific digital signals is becoming a key strategy for culinary MSMEs that rely on walk-in customers. By attaching location tags to Instagram posts and ads, businesses can make their products appear more relevant to users who are physically close to their stores.
A new study from Universitas Negeri Makassar reveals that culinary micro, small, and medium enterprises (MSMEs) in Makassar are increasingly using Instagram’s location-based advertising tools to turn online engagement into direct customer visits. The research was conducted by Dwiyanti, Mildayanti, and Agung Muliaman Anas and published in 2026 in the International Journal of Applied and Advanced Multidisciplinary Research. The findings show that geotagging and radius-based ads can significantly increase local consumer visits to food businesses in the city. The study arrives at a time when competition among culinary businesses in Makassar is intensifying. Many small food entrepreneurs are competing not only with local rivals but also with larger franchises that have stronger marketing budgets. In this environment, Instagram’s location-based advertising (LBA) has emerged as a practical tool that allows small businesses to target nearby customers without spending heavily on broad advertising campaigns. According to the researchers, the use of location-specific digital signals is becoming a key strategy for culinary MSMEs that rely on walk-in customers. By attaching location tags to Instagram posts and ads, businesses can make their products appear more relevant to users who are physically close to their stores.
Why Location Matters in Social Media Marketing
The research highlights a shift in digital marketing: success is no longer determined only by attractive visuals or viral content, but also by how precisely businesses can reach nearby audiences. In Makassar, local consumers often decide where to eat based on convenience, travel distance, and recommendations seen on social media. The researchers found that Instagram posts containing geotags, local place tags, and map-linked information were more likely to attract people who were already within a short travel radius of the business. This means a small café or street-food outlet can effectively dominate its neighborhood market simply by optimizing location features rather than trying to reach a citywide or national audience.
Research Method: Interviews with Business Owners and Consumers
The study used a descriptive qualitative approach with a case study design. The researchers interviewed culinary MSME owners in Makassar who had actively used Instagram location features for at least six months. They also interviewed local consumers who visited food outlets after seeing Instagram content linked to specific locations. In addition, the researchers directly observed Instagram accounts belonging to selected businesses to examine how often geotags and location stickers were used in posts and stories. This combination allowed the team to track how digital promotion influenced actual customer movement from online browsing to physical visits.
Key Findings: Small Radius, Big Results
The study identified several important findings about how location-based advertising works for culinary businesses in Makassar.
1. Geotagging increases visibility among nearby users
Businesses that consistently added precise business locations to their posts achieved stronger visibility among non-followers living nearby. Posts with location tags showed significantly higher reach compared with posts without location information.
2. The most effective ad radius is 3–5 kilometers
The researchers found that the strongest results came from ads targeted within a narrow 3–5 km radius. This micro-targeting strategy generated better quality interactions, especially direct messages from potential customers asking about menus, prices, or table availability.
3. Seven out of ten consumers visited after seeing nearby content
Interviews with consumers showed that 7 out of 10 respondents decided to visit a culinary venue after discovering it in Instagram’s Explore feed and noticing it was located near them. This suggests that proximity plays a major role in impulsive dining decisions.
4. Timing matters as much as location
The most successful content appeared during peak mealtime hours, especially around 11:00 a.m. and 5:00 p.m. local time. These time slots correspond to pre-lunch and pre-dinner periods, when consumers are most responsive to food-related content.
Local Culture Strengthens Digital Marketing
One of the study’s most notable findings is that location-based advertising works better when paired with local cultural language. MSMEs that used Makassar-specific phrases and informal local expressions in captions or advertisements saw higher engagement. Consumers responded more positively when ads felt familiar to their daily lives, rather than generic promotional messages. The researchers argue that this reflects the communal culture of Makassar, where dining is often part of socializing. When people post photos of food and tag a location, those posts act as trusted recommendations among friends and communities. This creates a chain of digital word-of-mouth that is more persuasive than conventional advertising.
Economic Impact for Small Businesses
The implications of the study are significant for Indonesia’s digital economy, especially for small businesses with limited resources. The findings show that MSMEs do not need to compete with large companies through expensive nationwide campaigns. Instead, they can focus on dominating a small local radius through strategic location-based content. This creates what the researchers describe as a “hyper-local dominance” model, where businesses build a loyal customer base within their immediate area. Such a strategy can strengthen economic resilience, especially in post-pandemic urban markets where local consumption patterns are changing rapidly. For policymakers and digital training institutions, the research also suggests that improving practical digital literacy—such as teaching small businesses how to use free geotagging and paid location ads—could directly support urban entrepreneurship.
Authors’ Perspective
According to Dwiyanti and colleagues from Universitas Negeri Makassar, the effectiveness of Instagram location-based advertising depends not only on technology but also on understanding local consumer mobility. They note that people in Makassar often make spontaneous food choices based on what appears on their phones while they are already moving through the city. In this context, location-aware advertising acts as a bridge between digital content and immediate real-world action.
Author Profiles
-Dwiyanti — researcher at Universitas Negeri Makassar, specializing in digital communication and MSME marketing.
-Mildayanti — academic at Universitas Negeri Makassar, focusing on consumer behavior and media studies.
-Agung Muliaman Anas — lecturer and researcher at Universitas Negeri Makassar, specializing in digital business and communication strategy.
Research Source
Source article:
“Utilization of the Location-Based Advertising Feature on Instagram by Makassar Culinary MSMEs to Attract Local Consumers”
Journal: International Journal of Applied and Advanced Multidisciplinary Research, Vol. 4 No. 4 (2026)
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