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Will Addressable Geofencing Replace Direct Mail?

Direct mail has been a marketing staple for many years. There's a reason why businesses still use it despite the prevalence of digital and radio ads. Technological advancements have made it easier to reach local customers and understand who you are reaching within this group. Addressable geofencing is a prime example of how technology can significantly enhance direct mail advertising. 

Addressable geofencing provides a way to identify specific households and physical addresses, such as those you've been sending direct mailers to. Using GPS data, you can send those same households further digital ads. Both direct mail and addressable geofencing are valuable tools that achieve similar ends. When you understand the distinction between the two, you can use them to benefit specific situations.

The Tools of Reaching Customers at Home 

Each customer is different, even if they share a household. Likely, the interests of those in one home will differ from their neighbors. All those various preferences are what provide opportunities for marketers. However, it requires reaching the right person with the right message.

Direct mail is physical correspondence sent to customers in a specific town, zip code, or neighborhood to entice them to visit your business, buy your products, or use your services. Direct mail campaigns are exceptionally effective, returning a higher ROI than paid search or online display ads. For many years, direct mail was the way to reach customers in a specific geographic area. It gave marketers a way to reach physical addresses in an area, although without much specificity.

Now, addressable geofencing gives you the option to zero in on individual addresses along with additional digital options. Addressable geofencing takes things a step further, allowing you to target a specific physical address at someone’s home so you can serve up a digital message through an ad with either display or streaming video (OTT and CTV). Using location-based strategies lets you identify customers when entering or exiting a geofence, or in this case an addressable geofence. It also gives you the opportunity, if applicable, to track the conversion of that digital ad.

Direct Mail's Continued Impact 

Direct mail will not be replaced by addressable geofencing, as it is still an accessible option for local businesses to reach customers. Instead, you can use geofencing to optimize its effects. Direct mail is tangible, memorable, and can reach customers that digital cannot, such as those who don't use social media. It has an even greater response rate than email. 

Addressable geofencing also enhances direct mail by giving insight into the local customers you most want to reach. That helps you save time and money by sending fliers only to those who will be interested instead of a mass mailing to everyone in an area. In addition, it allows you to reinforce the physical mailers with digital reminders of how your business can provide value. Together, you can realize the benefits of increased reach and brand awareness.

The Power of Addressable Geofencing 

With addressable geofencing, you can create highly personalized ads. For instance, you can choose to deliver ads to people who live near your store or even provide special discounts to those who have visited your competition. Engaging local customers online becomes easy when you offer relevant ads and localized insight on businesses they can easily visit. You can use addressable geofencing as a stand-alone strategy or as an extension to existing campaigns. 

While direct mail remains relevant and practical, you can extend your reach with personalized ads through digital devices. Digital offers you many options to reach your customers, whether through display ads, video, or OTT and CTV. Addressable OTT and CTV is a perfect example of the power of addressable geofencing. It provides the ability to deliver different ads to different consumers on the same program in the same household. In addition, the power of cross-device matching allows you to target that consumer on their devices even after they have left their home.

Direct Mail Is More Effective Than Ever with Addressable Geofencing

Advances in technology don't necessarily replace conventional methods but sometimes work to enhance them. That's the case with addressable geofencing and direct mail. Instead of replacing direct mail with digital ads, addressable geofencing provides the ability to increase the accuracy of your direct mail targeting. It also allows you to follow up your direct mail campaign with personalized digital ads to the same households. 

Direct mail still serves a valuable role in marketing, reaching those who are less computer savvy or aren't on social media. With the addition of addressable geofencing, you can get even more specific on your targeting by identifying customers who've frequented your business or other competing businesses. It provides cost savings by eliminating the consumers less likely to be interested in your products or services, so you can send your direct mail to those most likely to be interested. A digital partner can help you successfully reach customers using addressable geofencing to supplement or amplify your direct mail marketing campaigns.

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Karlie Mandigo

Written by Karlie Mandigo

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.

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