09 Dec How to Utilize Geo-Fence Marketing
Imagine being able to send a customized message, special offer, or discount to a consumer while they are shopping at a competitor’s location. Or, what about being able to target consumers attending a trade show or convention at which your business is appearing? Maybe you are just longing for the ability to target a location your desired audience frequently visits. Believe it or not, all the above are possible with geo-fencing, a highly-targeted display advertising method. This marketing strategy has some amazing capabilities for business owners and can be a great asset to an advertising plan.
What is Geo-Fencing?
Geo-fencing is a digital advertising method that allows advertisers to display banner ads to a location-targeted audience (via apps or websites) when that audience enters the selected radius around a designated location or address. Geo-fence marketing is ideal for advertisers who want to target competitors, reach current or former customers, or compliment their own business locations or event venues within the designated area.
Types of Geo-Fencing
There are two types of geo-fence campaigns. Each campaign utilizes a different targeting method: location-based or addressable.
A location-based geo-fence campaign identifies a specific location and targets ads at consumers within its specified radius. This is perfect for bringing nearby consumers to your storefront or for targeting consumers visiting a competitor’s location.
Addressable geo-fencing, on the other hand, creates a program targeted towards specific addresses. This is great for pursuing past customers and encouraging them to visit your store again.
Of course, Media Venue is happy to work with you to determine which geo-fencing program will work best for your business based on your campaign goals and budget.
How it Works
Geo-fencing works by creating an imaginary ‘fence’ within a radius around targeted locations. Individuals who enter the “fenced-off” area and have an active device (phone, tablet, or laptop) get their IP address picked up. Then (from there) they are fed an ad when they open an internet browser or app on the collected IP device. These ads can be set to various frequency levels and campaign lengths based on the goal of the campaign.
How to Determine Geo-Fencing Success
Geo-fencing success is based on conversions. These are IP addresses captured by your business’s campaign visit a conversion location, such as a brick-and-mortar business. Essentially, once a captured IP address passes through your business’s door, they are counted as a conversion.
After the geo-fence campaign concludes, you can pull analytics that include the number of conversions. This creates a measurable ROI (Return on Investment).
The Benefits of Geo-Fencing
There are several great benefits of geo-fencing due to its multiple uses. These benefits include the ability to target consumers visiting a competitor’s store or to attract consumers close to your own store (hyper-local advertising). However, one of the greatest advantages of a geo-fencing campaign is that it has value for both the advertiser and the consumer.
As an advertiser, you can actively promote your business to consumers within a specific area and track conversions. Even more, geo-fencing campaigns have shown to average above a 0.90% click-through rate and have more than 50% of consumers visit a specific retailer after a targeted ad.
For consumers, a geo-fence campaign can benefit them by offering special coupons, deals, and more. Studies have also shown that 71% of people prefer personalized ads. Geo-fencing that utilizes personalized ads also have almost double the click-through rate, even if it is an unknown brand! (source)
Start Geo-Fencing Today!
Geo-fence campaigns are a powerful marketing tool. However like any type of campaign, they need to be built upon sound strategy. Fortunately, Media Venue not only possesses the technology to launch your business’s geo-fence campaign, but years of proven marketing experience. Put our expertise to work and let Media Venue develop a geo-fencing campaign that will meet your business goals!
Visit the Media Venue website to learn more about our geo-fencing capabilities or contact our Digital Marketing Manager, Hannah Moore, for more information. Enhance your marketing investment with Media Venue!