Geofencing is a tactic of targeted display advertising. Using location data, geofencing makes it possible to deliver display ads to any user who has entered a specified geographical area or physical location. There are three different ways to use this tactic to your advantage.
Target Your Own Location
By targeting your own store location, you can deliver display ads to anyone who has entered your store within the last 30 days, keeping your brand top of mind. This is a great way to motivate your customers to come back. You can also use this as an opportunity to let them know about new products and promotions.
Target Locations Where Your Customers Are
Targeting locations where you think your customers are likely to be, allows you to target people who are thinking about similar products but may not be aware of your brand. For example, a car dealership may want to geofence an auto-repair shop. They know the people in this audience are car owners and may be thinking about buying a new car.
Target Your Competitors’ Locations
This strategy is the best way to get in front of prospects who are actively shopping for your competitor. By geofencing your competitors physical store locations, you can deliver branded display ads to whoever has visited their location in the last 30 days. Even better, if your competitor is having a promotion, target their prospects with display ads that tell them about what promotion you’re having.
How Do I Know These Strategies Are Working?
There are two ways to calculate the success of geofencing.
- Simply look at your store traffic. If you have seen in increase in store traffic since the campaign has started, then that may be a direct result of the geofencing.
- A more accurate way to calculate the success is to add conversion zones. This is when an additional geofence is drawn around your own physical store. This would be considered the conversion zone. Conversion zones can be used when geofencing your competitors and when geofencing locations where your customers are likely to be. Using conversion zones, we can count the number of people who have visited one of the geofences, saw your ad, then visited your store within 30 days.