As technology evolves, marketing strategies must evolve with it. The creation of the Global Positioning System (GPS) and the Internet Protocol (IP) address allowed for a new type of marketing tool to surface – location-based marketing. Location-based marketing uses your device’s GPS and/or IP address to determine your approximate location, which then signals marketing tools such as geofencing or geotargeting to begin serving ads to your device. Simply put, location-based marketing tools allow for a more precise ad delivery to an interested target audience. This maximizes your marketing dollars and creates a foundation for potential buyers to turn into loyal customers.
Does this sound good to be true? Trust us, it’s not. Businesses all over the U.S. are taking advantage of location-based marketing. And, it’s a solid guess that your competition is, too. Among the best location-based marketing tools are geofencing and geotargeting.
The Inside Scoop on Geofencing
Geofencing is a marketing tool that allows the user to create a virtual fence around a specific location. This location can range in size, from a single address to statewide. Many companies use both offensive and defensive methods when determining the location of their geofence. For example, it makes sense to create a geofence around your company’s shop to alert people who are nearby that you’re open and having a sale (offense). It also makes sense to put a geofence around your competitor’s shop so potential customers visit your store instead of shopping with your competition (defense). The geofencing technology uses your phone’s GPS or IP address to determine where your potential customer is and deliver an ad to their mobile device.
When to Use Geofencing
For companies that are trying to reach a broader demographic, geofencing is a very useful tool to reach your target audience. Geofencing allows you to fence a location or locations of your choice and people who enter that fence are captured. For example, if you are having a BOGO sale at your shoe store, you could use geofencing to target anyone and everyone who is in close proximity to your shop since you have shoes for kids, teens, adults, males, and females.
Understanding the Details of Geotargeting
Geotargeting and geofencing use the same type of location targeting to reach potential customers, but geotargeting takes it a step further. Geotargeting does not deliver ads to everyone who crosses the fence. Rather, geotargeting uses the information stored in your phone’s IP address to determine if you match with the same demographic listed in the geotargeting criteria. With geotargeting, you can zero in on a very specific demographic by choosing certain criteria, including:
- Age
- Behaviors
- Gender
- HHI
- Interests
- Location
Although you can use a very specific location, it may be in your best interest to create a larger fence when implementing geotargeting since you will not be delivering ads to everyone who crosses the fence. Adjusting your fence will allow you to reach more people who meet your specific targeting criteria.
When to Use Geotargeting
For companies that have a product or service that only pertains to a certain demographic, geotargeting is the location-based marketing tool to use. For example, spinning off the shoe store example from above, if you want to sell a shoe that was made specifically for older women, you can adjust your demographics to reflect these details. With geotargeting, only older women will see your shoe ad instead of anyone crossing the invisible fence.
M&R Marketing Can Implement Geofencing & Geotargeting into Your Marketing Strategy
When set up correctly, geofencing and geotargeting puts your company, products, and services in front of your target audience. It exponentially increases the chance for them to choose your company over your competition. With this incredible technology working for you, your marketing tactics can be more efficient and profitable. Our team would be happy to discuss this marketing service with you and hear what your goals are for location-based marketing! Reach out to our team with questions: 478-621-4491.
Stay tuned for parts two and three of our location-based marketing series:
- Part 1 – Understanding Location-Based Marketing: Geofencing & Geotargeting
- Part 2 – 3 Reasons Why You Need to Utilize Geofencing
- Part 3 – How to Effectively Implement Geofencing into Your Marketing Strategy