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GeoFencing – Advantages To Using This Targeting Strategy

Jul 16, 2020

One of the most exciting developments in Programmatic Advertising over the past few years has been the evolution of Geo-Fencing targeting.

Technological advancements have led to unprecedented, precise levels of targeting that your client needs to take advantage of!

While Geo-Fencing capabilities vary depending on the Demand-Side Platform you’re using – some are actually just targeting a 1-mile radius – our solution is accurate to within 5 meters and comes with unparalleled conversion tracking.

What is Geofencing?

Geofencing, in its simplest form, is a type of ad retargeting that targets a customer or potential customer with an ad when they fall within a predetermined diameter or distance from a business.

Imagine that there is an imaginary fence built around your local shoe store. When you walk through the fence with a mobile device, this will trigger the action of sending push notifications to your device.

These notifications can be about store promotions/discounts, restaurant deals, ride-sharing notifications and other information deemed useful to the consumer.

The purpose of this type of advertising is to build brand awareness for your business and to also stay top of mind. So if a customer doesn’t convert that same day, serving ads to them afterwards may help increase the chance of conversion later on.

How Effective is Geo-fence Targeting?

Geofence targeting is by far one of the most effective means of digital advertising today. According to a 2018 geofencing survey, 53% of users say they have received and acted on an alert about a sale or promotion.

With a conversion rate like that, it’s hard to imagine a reason why a business would not incorporate geofencing into their digital campaign.

Our Agency Partner came to Conduit Digital looking for digital solutions to bring their client Casino Pier incredible success.

With a yearly flash sale on Easter weekend for their customers, Casino Pier was looking to drive more sales with ½ priced for tickets to their rides and amusement park.

The campaign was designed to focus on acquisition, advanced acquisition, brand awareness, and sales. With Geofence targeting being one of the driving forces in this campaign, our expert team was able to generate 164.5K mobile impressions in one county alone! This helped contribute to the 480% increase in their ROI for that year!

Still don’t think that Geofencing is worth your time? Our team sat down to discuss the advantages of utilizing Geo-fencing in your digital marketing strategy.

Why You Should Use Geo-Fencing

1. Conquering The Competition

One of the most effective marketing concepts, conquesting works by targeting people who we know are in-market for relevant products/services since they are engaging in some way with your client’s competitors.

In the case of Geo-Fencing, we are targeting people who have visited the competition’s physical locations – a tremendous advantage for clients in dozens of different industries!

In one particularly strong example, we implemented a Geo-Fencing Conquest strategy for a regional Restaurant chain and targeted competitors within close proximity.

Through our advanced conversion-tracking capabilities, we were able to show that people who saw our Geo-Fenced ads were a whopping 300% more likely to actually visit our client’s physical storefront!

2. Targeting The Needle In The Haystack

While targeting the competition is straightforward enough, we’ve all had clients where it is much more difficult to pinpoint an in-market audience. Through Geo-Fencing, there are often ways that we can get your client’s ads in front of the right people, even in some of the most niche industries!

One of our most frequent examples is B2B – many times there may not be high search volume for some of these services and it may be difficult to develop an impactful digital marketing strategy.

However, we have seen success by Geo-Fencing Convention Centers hosting industry-related events, effectively getting your client’s ads in front of hard-to-reach users!

3. Demographic Targeting With Foot Traffic Attribution

Lastly, we’ve also seen strong results by targeting demographically-relevant areas, as opposed to the industry-relevant locations discussed in the previous points.

This can be a compelling strategy for clients who know the demographics of their target audience, as it offers the ability to track foot traffic which isn’t typically possible with traditional segment-based demographic targeting.

While working with a high-end fashion retailer, for example, we were able to drive measurable foot traffic to their store by Geo-Fencing areas with a high concentration of wealthy people, such as Private Country Clubs and affluent neighborhoods.

Utilizing geofencing targeting in your digital marketing strategy is a no brainer. The ability to build a “fence” around you or your competitors business in order to directly target those users will increase your overall conversion rate.

People spend, on average, 27% of their life on the internet each year. Whether they’re shopping, researching products, or checking the score, our Programmatic Display & Native team ensures your client’s brand is there.









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