Location-based content on TikTok and Instagram has become one of the most effective ways for creators and businesses to reach the right local audience. However, only a few people truly understand how these platforms determine user location and why it matters.

By understanding how TikTok and Instagram collect location signals, you can better optimize your content, making the algorithm prioritize your videos for the right viewers. This article explains how platforms recognize local content, the most important influencing factors, and strategies to increase local reach.

1. How TikTok determines local content

TikTok uses a combination of data sources to understand where users are located and which content they should see. In addition to common signals such as engagement or watch time, location is a significant factor.

If you allow TikTok to access your location, the platform will show you more videos from your current area. Likewise, your content will first be shown to users nearby before expanding to a wider audience.

Even without location access enabled, TikTok can still estimate your location using your IP address or SIM card. For example, if you live in Germany but travel to Australia, TikTok will still prioritize content from Germany because your SIM card is registered there. Only if you switch to an Australian SIM will the content shift to Australian topics.

TikTok also considers the location of the people you follow to better understand your area of interest. If your IP address is in London but most of your friends and followers are in Toronto, the app will show you content from both regions.

Location data does not only impact which videos are shown — it also influences suggested search keywords, the order of comments, and recommended accounts.

2. How Instagram determines local content

Instagram also uses a variety of signals to identify which content is relevant for a specific area. This affects both the Home feed and the Explore page.

Instagram relies on four main types of data:

• Explicit location data
  Including geotags on posts and Stories, device location, and IP address.
• User interaction
  The algorithm analyzes accounts users follow and content they search or like. Based on that, Instagram prioritizes posts from businesses, events, or individuals in the same region.
  For example, when an app like Libby collaborates with local libraries, Instagram easily recognizes that the content is tied to a specific local community.
• Locally trending content
  Instagram amplifies posts receiving strong engagement within a region, helping them spread faster within that geographic area.
• Captions and AI recognition
  Hashtags are no longer the primary signal Instagram uses for classification. Instead, it uses AI to analyze images, audio, and text in captions to better identify topics and target viewers.

3. Key elements of creating local content

To effectively reach local viewers, you must show the algorithm that your content is targeted to a specific region. Important factors include:

• Optimize your profile
  Include the city or area in your account name, update location in the bio, and add local contact information when possible.
• Use location tags and geotags
  Adding a location to posts and Stories is the fastest way for TikTok and Instagram to detect the geographic target.
• Use local hashtags
  On TikTok, local hashtags like #torontocoffee or #londonfoodie are still highly effective. While Instagram relies less on hashtags, they can still support search.
• Optimize captions and descriptions
  Use keywords related to the region in captions, on-screen text, or voiceover.
• Follow local trends
  If a sound or trend is popular in your area, using it helps the algorithm identify your content as relevant for local viewers.
• Keep SIM card location in mind on TikTok
  SIM card data is a strong signal TikTok uses for content distribution.
• Engage with the local community
  Following, commenting, and interacting with local accounts helps the algorithm detect your connection to the region.

4. Common mistakes made by Vietnamese business owners in the F&B and nail industries in Germany

Many Vietnamese business owners in Germany have strong skills and quality products, but struggle to attract local customers. Most issues stem from the following common mistakes:

Relying solely on regular customers and word-of-mouth
Many shops perform well initially within the Vietnamese community, but when market conditions change, that customer base is no longer enough to sustain growth. German customers primarily search for services and restaurants through Google and social media. If the business has no presence on these platforms, local customers are unlikely to discover them.

No website or an outdated website
Many shops lack a website, or only have a basic single-page version with poor search optimization and missing essential information like menus, price lists, photos, opening hours, booking or reservation features. This reduces trust among German customers.

In Germany, having a proper website is a standard expectation for assessing professionalism. Without it, customers quickly choose competitors instead.

Using social media incorrectly for the German market
Many owners post like they would in Vietnam: uploading too many photos, overusing hashtags, ignoring content quality, not adding location tags, or not using German language. This makes it harder for the algorithm to understand which local audience the business is targeting — resulting in low reach among German users.

Additionally, excessive promotions or low-quality images can diminish perceived service quality and brand value.

Not monitoring business ratings on Google
Some owners rarely check their Google Business Profile, leading to issues such as:

• Outdated or low-quality photos

• Incorrect opening hours

• Unanswered negative reviews

• No updated menu or price information

As a result, German customers see inaccurate or negative information that owners are unaware of.

No structured marketing plan
Most owners focus on operations and customer service, but lack long-term marketing strategies. This causes inconsistent promotions, low effectiveness, and an inability to measure results — missing many opportunities to reach local customers.

5. The role of SPS Marketing in supporting business owners in Germany

SPS Marketing acts as a strategic partner, helping Vietnamese businesses in Germany build a professional brand and systematically attract local customers. The three most important areas include website, social media, and overall marketing planning.

Professional websites built for the German market
SPS Marketing helps businesses:

• Build a clear, user-friendly website fully in German

• Optimize Google search results for local visibility

• Standardize menus, price lists, and images

• Integrate booking or reservation systems

• Create a professional first impression and build trust immediately

In the German market, a well-built website is the “face” of the business. It can generate a steady flow of customers without constant advertising.

Social media management aligned with German user behavior
SPS Marketing develops platform-specific content:

• Optimized location tagging and local signals for accurate targeting

• German-language copywriting and professionally edited visuals

• Content aligned with German preferences — quality reviews, brand stories, operational behind-the-scenes

• Consistent posting and engagement without interruptions

• Helping TikTok and Instagram clearly identify the business as local

This enables businesses to attract not only Vietnamese customers but also German customers with higher spending power and more frequent service usage.

Comprehensive marketing planning
Effective marketing cannot rely on random posting. SPS Marketing supports:

• Monthly or quarterly communication planning

• Synchronization across website, Facebook, Instagram, TikTok, and Google

• Seasonal and local event promotions

• Content style development to strengthen brand recognition

A clear plan helps reduce costs, improve effectiveness, and create a more professional brand image for local customers.

Conclusion

In the German market, customers expect clear, transparent, and professional information before deciding to visit a restaurant or beauty salon. Therefore, good service quality alone is not enough. Business owners must appear in the right place, at the right time, and in the right way to reach local customers.

TikTok and Instagram prioritize content with strong local signals. German customers rely on Google and websites before trying a service. This is why marketing is just as important as product quality.

SPS Marketing can help Vietnamese-owned businesses in Germany build a strong foundation — from German-standard websites and professional social media content to long-term marketing strategies. When implemented correctly, businesses can expand their customer base, increase return visits, and grow sustainably in an increasingly competitive environment.