Location data is a powerful instrument for increasing the efficiency of an advertising campaign. Services that allow advertisers to get closer to customers in a specified location can significantly change the engagement. This article highlights two location-based services: geofencing and geo-targeting, and answers the main question: how do they work and which one to choose.
To put it simply, Geofencing is a location-based service that triggers actions in the mobile application or other software programs when the device enters a set location. For instance, these actions could be app notifications, text messages, coupons, security alerts, emails, or ads on social media. Using radio frequency identification (RFID), Wi-Fi, GPS, or cellular data, geofencing creates a particular area (zone) around a predetermined point on the city map, entering or exiting which triggers the stated above actions.
Geofencing and geotargeting are both a part of
marketing, but they serve different purposes. While geofencing is simply drawing a virtual fence around a particular geographic location, geotargeting involves using various factors (often including geofencing) to reach specific users!
Understanding Geofencing Vs Geotargeting
What is geotargeting?
Geotargeting uses a persons current location and additional data to personalize the advertisements they see. This type of advertising is more specific than geofencing since users must meet more criteria in order to see an advertisement. Digital marketers may build a customized target audience by using data about their interests, behaviors and demographics. Then they can select the specific geographic area where they want to serve their advertisement. This can help digital marketers personalize their ads to make them more relevant to their audience.
For example, if you own a burger restaurant and you recently added a new vegetarian burger to your menu, you may want to advertise this option locally. You also want to ensure the people who are the most likely to try your vegetarian burger see your advertisements. You could target your city and then use the additional data geotargeting provides to focus on people who are interested in vegetarian recipes, animal rights and eating healthy. This can help you reach customers who are likely to engage with your advertisements and improve your return on investment.
What is geofencing?
Geofencing uses a persons current location to determine what advertisements they see. Digital marketers use geofencing to set the exact geographical location where they want to serve their ads. They may draw a fence or set boundaries on a digital map to indicate what area they want to target. When users pass through this area, they may see the ads on their phones or digital devices. Marketers can choose to make the area they target big or small depending on their marketing goals and where they place the geofence boundaries.
They may choose to geofence an entire city, a specific establishment or a neighborhood. For example, if you own a restaurant and you want to increase the number of customers who dine at your establishment, you might choose to create a geofence around a nearby stadium or events center. The next time a large event takes place, you could use this geofence to send a special promotion to people who are at the stadium to encourage them to visit your restaurant for dinner or drinks. This can help you attract new customers who are visiting your area.
When to use geofencing vs. geotargeting
Understanding when its beneficial to use geofencing and when its beneficial to use geotargeting can help you develop more effective advertising campaigns. Here are some tips to help you determine when you use each marketing tool:
Marketing uses for geofencing
Digital marketers use geofencing when they want to advertise to a specific geographic location. You may choose to use geofencing if:
Marketing uses for geotargeting
Digital marketers use geotargeting when they want to advertise to a specific geographic location and a specific type of person. You may choose to use geotargeting if:
Geofencing vs. geotargeting
While geofencing and geotargeting are both types of location-based targeting, there are several important differences between these two marketing tools. Here are some of the key differences between geofencing and geotartgeting.
Advantages of geofencing and geotargeting in marketing
Understanding the specific advantages of geofencing and geotargeting can help you choose the right tool for your next marketing campaign. Here are some of the key advantages of geofencing and geotargeting:
Digital marketers who work with local companies, small businesses and events often use geofencing to help them effectively target potential customers based on their location. Using geofencing can help you:
Digital marketers who work with growing companies that provide niche goods or services often use geotargeting to help them effectively target potential customers based on their location, demographics, behaviors and interests. Using geotargeting can help you:
Tips to implement location-based advertising
Here are some additional tips to help you implement effective location-based marketing by using geofencing or geotargeting:
What is geo fence targeting?
Is it geo fence or geofence?
What is geo-targeting and location advertising?