Businesses use geofencing and addressable geofencing for highly targeted marketing. These location-based strategies can identify customers as they enter or exit a virtual boundary or geofence, whether it is your brick-and-mortar storefront, your competitor's business, or targeting a home address. Geofencing combines strategic thinking with GPS, longitude and latitude, location-based targeting, and mobile apps to take your marketing efforts to the next level. It creates targeted, personalized opportunities based on the customer's location.
Geofencing uses the global positioning system (GPS) to define a geographic boundary with a virtual fence to target consumers who visit a physical location. These consumers receive targeted app delivery for 30 days after leaving the fence targeted area or virtual fence. Addressable geofencing takes it a step further. Like geofencing, this tactic targets an address but is most likely consumers' homes utilizing a mailing list or curated list. You can convert every street address into a geofence, providing marketers the opportunity to target consumers with extreme accuracy and a high match rate. Addressable geofencing effectively increases foot traffic back into a business location, tracks conversions for ROI, and enhances the frequency and reach of any campaign across multiple digital devices.
Addressable geofencing is typically a short-term strategy using a curated or compiled list from your marketing software. It provides improved audience targeting precision using third-party data, such as census information, for more details about each location and its residents. That level of detail allows marketers to define specially curated lists to target those most likely to buy the product or service. Businesses can also use conversion zones to measure the impact of their campaign or retarget customers who used a promotion.
To illustrate, let's say you are a landscaping company. Your campaign goal is to target homes in early spring and let them know about your services. In your marketing strategy, you have an existing display ad campaign targeting consumers searching for ways to fertilize a yard for spring, or someone searching for lawn services such as mowing and landscaping.
Using a curated list, you target specific neighborhoods that meet the criteria you seek. For example, you may want to set a minimum home value or household income, as these homeowners will more likely seek landscaping services. Ensure that the campaign excludes current customers. Furthermore, depending on your team's capacity or equipment, excluding homes with lawns larger than one acre could increase accuracy. Limiting your targeting enhances your ongoing display ad campaign. With this list, you can show customer testimonials explaining their satisfaction using video, OTT, or CTV.
Addressable geofencing can strengthen your marketing as an additional complementary component of your strategy. You can combine addressable geofencing with other campaigns, such as direct mail, display ads, video, OTT, or CTV. It also can conduct cross-device matching to continue targeting consumers across all their digital devices by adding them to your customer list. By showing the same ads across multiple devices, whether the consumer is at home or on the go, you extend your reach and keep your business top of mind, no matter which device your target consumer uses or where they are.
One example of addressable geofencing as part of an overall campaign strategy is a credit union running a 30–60-day special rate for consolidating loans. For an additional short-term campaign, they pull a list from their CRM to their members to deliver this message utilizing addressable geofencing. As more customers see your ad and see encounter it multiple times, they’re more likely to follow through with taking out the loan.
Mobile technology’s advancement provides numerous benefits for marketers and consumers alike. Geofencing enabled businesses to offer special promotions to those within their virtual fence. It’s a reliable method to increase foot traffic and directly track conversions for ROI while giving nearby customers a convenient and timely promotion. Before developing addressable geofencing, marketers could only rely on mobile devices and proximity to reach customers in specific areas.
Addressable geofencing was a game-changer. It made every address a potential geofence and married a wealth of public and third-party data to the physical addresses, allowing marketers and business owners of all sizes and budgets to customize ads with a high degree of accuracy and personalization. Now, businesses can reach their target consumer across multiple devices with various digital marketing techniques while excluding those who don't meet specific criteria. When you are ready to find out how addressable geofencing can heighten your campaign, choose a knowledgeable and experienced media partner to help you gain the best insight for achieving optimal results.
Karlie Mandigo is a Senior Digital Marketing consultant for Federated Digital Solutions. She has been leading the consulting team since 2017 and has developed a particular skillset that focuses on the automotive industry. Her passion for her career comes from the ability to cultivate trusting relationships with clients. She enjoys putting all the puzzle pieces together to create a strategy that will help achieve and exceed her client’s goals year over year. Karlie puts the work in with her clients and it shows as she knows and believes that true commitment starts AFTER the sale.