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Marketing firms use geospatial data to create geofences in specific areas where they advertise. Due to this, it becomes more expensive. This allows them to market to targeted clients. Meanwhile, it saves on marketing costs for those unlikely to buy.
So, what exactly is geofence marketing? How does geofence marketing work? What are the specific reasons why advertising firms use it? And how can you use geofence marketing to help your marketing efforts? This guide will provide answers to all your questions regarding geofence marketing.
Geofencing marketing involves creating a virtual boundary around a location or area. It includes monitoring every move made by mobile devices.
Also known as geofencing advertising, it’s a critical new approach for a company targeting potential customers. Check how traditional advertising works to understand why. A company transmits ads through mass media channels. They include:
This is an attempt to reach as wide an audience as possible.
The audience they reach is unlikely to be interested in what the company offers. They want what is advertised. Geofencing helps marketers define specific boundaries within which their ads will appear.
Geofence marketing targets people nearby who are more likely to shop at a particular business. This is due to proximity, demographics, brand affinity, and other attributes. This is far more effective and cost-effective than broad, random, and costly bulk advertising.
You must have question is geofencing marketing effective? Geofencing is an efficient way to reach and communicate with your users on the go. According to a recent study, location-aware notifications are ten times more effective than typical push notifications.
Mobile geofencing integrates location intelligence and online activity into your app. This aims to boost audience segmentation and notification delivery. Its capacity to be personalized has made it a helpful tool. It reaches the audience on time and with accuracy.
Below are some ideas that can add benefits for an effective geofencing marketing strategy:
Geofences can be created in three ways:
This entails determining the center of a building or property. Calculate the distance from that point (i.e., the radius) in each direction. This results in the formation of a general proximity zone. When someone with a mobile device gets close enough to the point of interest, it will send out ads.
This includes calculating the time needed to get to a selected spot from another location. The company can then send out ads only to people who can navigate to their business area within a specific time frame. Geofence aims to market a business based on how people can get there. There may be obstacles or inadequate transportation routes near the store.
This method employs measured polygons to represent the precise physical boundaries of a POI. Be it an entire building, a park, or a shop in a mall. Then a company can send notifications only to people who have entered the building or property. This targets people with the potential intent to buy something from the store.
Marketing is about personalization. You can’t set up geofences and expect to convert many people. You must know who your customers are and where they are. Understand what they do and when they do it.
Here are four suggestions for making the most of your marketing geofences:
By setting up a geofence without considering who it will target, you can contact people who aren’t interested. That is why conducting demographic research on nearby populations is critical before establishing geofences for your business. This will give you an illustration of which census block groups will likely yield customers. In return, it allows you to position your geofences.
Specific geofence creation methods may be more suitable for you than others. For example, you can capitalize on your company’s proximity to one or more popular tourist spots. You should use POIs to create radius-based geofences. Additionally, if your business is accessible to nearby areas where people gather, you may generate isochrone geofences.
Adjust your geofences to deliver relevant marketing messages at specific times of the day. Ensure your geofencing messages are sent to the right people at the right time. Mobility data can help you understand when people visit particular stores or neighborhoods.
When creating advertising geofences, make sure to use data from reputable sources. It could be challenging if your calculations, polygons, or other data are incorrect.
Let’s dive into some practical tips for each stage of the geofencing process.
Create your geofence after you’ve decided on your target audience and where you want to reach them. You can design your geofence in two ways: around a point location or a preset boundary.
A point-location geofence, for example, could be the half-mile radius around a bus terminal. A predefined set of boundaries may be a school zone, neighborhood, or mall.
To encourage in-person visits, geofencing should be used within five minutes of your location. This increases the likelihood that they will act on your ad, and you will see a higher return on ad spend (ROAS).
You can specify entrance and exit events for each geofence. Before triggering a campaign or event, set a wait or dwell time within the geofenced area. The best time to start is when someone enters your geofence.
A store, for example, could send a push notification when a user is within 200 meters of your store. You can entice a user with an offer or special promotion.
When someone leaves your geofence, it’s a good idea to add them to your retargeting attempts. It ensures they can receive ads for up to a month. This is an illustration of how geofencing enters and exits.
Notifications based on location aren’t new or unique. Marketers can create targeted campaigns based on time, date, and place. They use unique insights such as demographic information, buying habits, interests, online browsing behavior, and previous purchases. This is done by using programmatic capabilities to add a layer of behavioral data.
With behavioral data, marketers can create precise campaigns that are relevant to users’ interests and previous purchases. Target specific ages and income levels to ensure you reach the most likely customers.
When creating geofencing ad creatives, keep your target audience in mind. Experiment with static ads, GIFs, and video content to capture your customers’ attention. Use relevant copy that speaks to your target audience.
You can let the user know they’re nearby and increase foot traffic by using interesting phrasing like “Come on in.” Your copy should also include a call to action that communicates its value. For example, “50% off today only” or “10% off when you show this notification” state the benefit of acting on the ad.
Although geofencing has an excellent ROI, its campaigns can be streamlined and optimized. Reviewing your geofenced ads may generate more leads and conversions.
The essential metrics for geofenced campaigns are cost per visit (CPV), total visit rate (TVR), and click-through visits. Remember that you’ll need to interpret the metrics based on your company’s needs. In-store visits will not tell you if your campaign is achieving its goal of increasing expensive purchases.
You can choose which elements to change using strategic A/B testing. Run these tests to improve your geofencing campaign. As a result, you will notice more valuable results for your business.
Amazon’s new geo-location service makes it easier for clients to connect location functionality to their apps. The new feature launched recently allows customers to insert their location. It uses high-quality data from top providers to show maps, POIs, and geocoding. The feature also includes route planning, geofencing, and tracking assets.
The service can have items such as packages delivered to customers. You could also add a map to its site or app to direct customers to your business. Businesses can use geofence marketing to reach customers near a retail location with timely offers.
Burger King’s Whopper Detour campaign is one of the best geofencing examples. Burger King tromped McDonald’s by offering its iconic burger for one cent. Only users who downloaded the BK app and ordered from it while visiting a McDonald’s restaurant were eligible.
Burger King collected data on thousands of McDonald’s restaurants in advance. Burger King then created geofences around each of them to activate the in-app promotion. This enabled them to capture many competitors’ customers. Subsequently, this made Burger King one of the top geo-conquesting examples. At the same time, they receive a lot of free publicity.
Like many other geofencing examples, Starbucks uses the technology to send push notifications to prospective customers. A happy hour special is an example. Users in the area receive special push notifications when certain drinks are half-priced.
Starbucks cannot tell when customers are nearby or when they walk in the door. However, they can use geofence marketing to categorize customers. For instance, whether the user is a cappuccino or frappuccino drinker. Because of this, they deliver an appropriate push notification.
Geofence marketing is one of the top business marketing ideas that has been proven to generate quality leads. They help grow your business. Running Google Ads campaigns takes a lot of work. You have spent a lot of your marketing budget on paid ads. That’s why managing and optimizing your PPC campaigns is essential to get the desired results.
This is especially true when running multiple campaigns in the same account. A tool like PPC Signal can help you analyze your PPC campaign data. It alerts you to problems in your campaign ahead of time. PPC Signal allows you to resolve them before they exhaust your budget.
Say you manage a campaign for your online shop and want to optimize conversions. From the dashboard, select metrics. Then select conversion. You will see a signal that tells you how your conversions are performing. You can also explore the signals to get more information.
After clicking the Explore button, you will see graphical data about your signal. The data lets you see how long your conversions have been shrinking.
You can also see the data in tabular form. It enables you to check other campaign metrics influencing your ad conversions.
These signals help you check the effectiveness of your conversions. Besides, they tell you if your conversions are trending downward. The signals also tell you how other campaign metrics are influencing your conversions.
As a result, this can take you one step further and help you take action with minimal effort. Ultimately, you’ll get better results.
These findings make it possible to make faster decisions. You will also take actions that will help you prevent overspending. You can use existing data to boost your sales.
Geofencing has a smaller target audience. On the contrary, geotargeting has a larger target audience. Geofencing delivers hyper-relevant ads based on location. On the other hand, geotargeting shows more personalized ads based on location and interests. It also includes behaviors and demographics.
Geofence marketing costs between $4 and $15 CPM (cost per thousand impressions). However, several factors, such as impression quantity, influence the price. Make sure in Google Ads there is no extra cost for geofencing setup. It’s a part of your overall advertising budget which you set for your campaign.
Geofence marketing that works results in meaningful interactions between a company and a client or potential customer. Companies can enjoy this mobile marketing strategy by combining technology with precise customer targeting. A genuine and personalized message can be included as well.
With the help of geofencing, advertisers can clarify geographical limits for the allocation of their ads. This is far more effective and cost-effective than broad, random, and costly mass advertising. Because of proximity, demographics, brand affinity, and other factors, they can target people who are likely to shop at their business.
Geofencing starts with technology. This type of marketing employs technologies such as beacons and GPS to build a boundary. Sometimes it uses IP addresses. Users may receive tailored ads or notifications if they use a business-related app or use keywords.
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