You already know that personalized marketing is one of the most effective ways to reach your consumers. You may even be a master at designing individualized content. But, if that content isn’t reaching the right people, at the right time, you could be missing out. When you want to take your one-on-one marketing to the next level, promote your brand, and drive revenue to your business with addressable geofencing advertising.
In this article, we will cover:
- What is addressable geofencing?
- How does it work?
- How do marketers use geofencing?
- Why your ads should be personalized
- What do the stats say?
- The benefits of addressable geofencing advertising
- Success stories
- Geofencing marketing strategies
- Is addressable geofencing right for me?
What is addressable geofencing?
While the software behind it may be sophisticated, the concept is simple. Addressable geofencing helps you stay in control of your business by notifying consumers who pass by your store, a competitor’s, or another predefined area.
Geofencing is a local-mobile advertising tactic that allows you to target smartphone users when they enter a certain radius. Not only is this marketing tactic is relatively new, but it has also proven to be highly effective. By targeting consumers when they are most likely to be ready to buy, businesses have experienced significant sales growth. Although related to traditional geofencing, addressable geofencing is an entirely different animal.
Geofencing marketing with addressable geofencing truly takes personalized marketing tactics to the next level. From delivering personalized messages to people who live near your retail store, or a discount offer to those who just visited your competitors; the potential of addressable geofencing is far-reaching
How does it work?
Geofencing refers to the creation of virtual boundaries (a fence) around a specific location (geo). Traditional geofencing triggers action as soon as a person enters or leaves your targeted radius. When you incorporate addressable geofencing, you create a boundary around individual businesses and houses.
1. Create a list of up to one million physical addresses
Working with a geofencing marketing agency, advertisers will upload a list of up to one million physical addresses that they want to target. Plat line data is then used to match these addresses to a physical location, including the size and shape of each address. Geofencing companies build a geofence around each address to target users associated with this household across multiple devices.
2. Set your geofence perimeters
Geofencing advertising delivers targeted messages as soon as your potential customer crosses the fenced location – in this case, their home or business. Location identification is made possible with technologies such as GPS, radio frequency identification (RFID), Bluetooth, and even mobile applications.
3. Develop personalized campaigns
Advertisers are then able to reach consumers with video ads, audio ads, and display ads via mobile devices, laptops/desktops, and connected TV advertising. This type of marketing works well as a standalone campaign or as a complementary of existing personalized campaigns, including direct mail, addressable TV, and other marketing.
How do marketers use geofencing?
After you’ve set up your geofence, it’s time to determine the goal of your geofencing campaign. Marketers use addressable geofencing to target users via various approaches, as fits with your business. Some of the most common methods of geofencing are:
- To increase app downloads, available offers, and other incentives when a user enters a geofenced area.
- To raise brand awareness and engagement through relevant promotional text messages/alerts when users enter a specific area.
- To cross-promote strategic partnerships, such as third-party apps and other coupon generators, your business may have partnered with.
- To target consumers through social media through the placement of ads and native advertising on their feed and Facebook’s Local Awareness Ads.
- To place targeted web ads with services like Google Ads.
- To promote complement direct mail and connected TV advertising efforts in the home.
Why your ads should be personalized
Data collection, analysis, automation technology – you know the drill. Most businesses use some level of personalization in their marketing strategy. However, the way advertisers have used these tactics have become more subtle and better ingrained.
Your consumers see dozens of advertisements every day. They know that businesses are trying to reach them through every aspect of their lives. So much, that it’s easy to gloss over all of that carefully curated content, you invested in.
So, how do you get their attention?
The truth is that millennials, the largest demographic on the planet right now, don’t want to be told what to do anymore. Not only do they crave relevant, engaging content, but they also wish to have it delivered in a way that is individualized to them.
Individualization is more than serving certain ads to specific demographics. It’s is recognizing your audience as individuals with the knowledge and power to make their own purchasing decisions. Long gone are one-size-fits-all marketing techniques – customers want real value in their advertising experiences.
Marketers deploy personalization tactics in a variety of ways, and some are more obvious than others. From geofencing marketing and native ads to connected TV advertisements, the tactics used to reach consumers are becoming more subtle and better ingrained.
What do the stats say?
Here’s what you need to know before investing in a geofencing strategy:
- A study by Skyhook revealed that brands could expect as much as a 20% increase in conversion when they add location data to their ad data. But how specific is this? With the help of geofencing technologies like GPS and RFID, brands can target insanely precise locations, such as a street, building, or home.
- Customers not only expect personalization, but they also value it. According to Epsilon research, 80% of consumers are more likely to do business with a company that offers a personalized experience.
- Search Engine Watch revealed that only 22% of businesses surveyed had implemented hyper-local targeting tactics. So, if you are using geofencing advertising, you are ahead of 88% of your competitors. On the other hand, if you are not using geofencing marketing techniques, your competitors may be directly targeting your customers.
- Over 4.5 billion people on Earth own a smartphone. Of these users, there are over 3.5 billion unique mobile internet users who contribute to over 50% of total Internet traffic. That’s a lot of addressable geofencing potential!
- 90% of customer experience decision-makers a free that great consumer experience is vital to their success. Geofencing promotes better customer experiences, driving sales, and increasing retention.
- Speaking of retention, a study by Bain & Company reveals that just a small 5% increase in customer retention can increase profit margins by 25% to 95%. Now that’s a number worth paying attention to.
- Consumers read 90% of text messages within the first 3 minutes of being sent. Since geofencing can react to consumer behavior and location in real-time, you help your brand make better-informed, instant decisions. Additionally, your consumers are reminded to choose your brand over the hundreds or thousands of similar businesses in a specific location.
The benefits of addressable geofencing advertising
The world of digital marketing is continuously evolving. As advertisers continue to introduce new marketing techniques, business owners have even more ways to accomplish their goals. Addressable geofencing enhances targeting precision, improves the frequency of ads, and the effectiveness of marketing efforts.
Here’s why geofencing ads are an invaluable tool for your personalization marketing strategy:
Geofence ads are plat line-specific
A physical address is more than just the building on the property. It extends from one boundary to the other. Addressable geofencing considers property as a whole using public data such as property tax records. It is even more precise than IP address targeting, yielding a 90% success rate and targets all devices across single and multi-family residences.
Geofencing marketing improves shopper loyalty.
The cost of earning a new customer is ten times more than the price of retaining one. Geofencing marketing helps you show your consumers appreciation for shopping at your business, without having to offer discounts and promotions every time. Instead, advertisers can share relevant content with their audience that isn’t pushy. A more consistent and relaxed approach to advertising allows consumers to make purchasing decisions on their own. When consumers make decisions on their own, there is more positive surrounding your brand.
Geofencing advertising optimizes data and analytics.
The core of successful geofencing ads is its analytics. Not only is your campaign supported with data, but geofencing companies are also able to provide actionable information to help with your next campaign. When you partner with a professional, you can see this data and make necessary adjustments to improve your campaigns and boost engagement rates in real-time.
Addressable geofencing is highly scalable.
Addressable geofencing advertising takes digital marketing to new heights. Advertisers can add up 1 million addresses to their campaign at the same time! This sheer power of visibility opens up limitless opportunities for meeting your consumers in the space that will have the most significant effect on their purchasing decisions.
Geofencing marketing has over 1300 demographic variables.
In addition to location, geofencing companies can also customize your campaign to specific demographics such as income, age, interests, and more. Targeting more particular groups mean that you can still focus your marketing efforts on the people who are most likely to turn into customers.
Geofencing advertising complements other addressable campaigns.
Addressable geofencing doesn’t have to be a standalone tactic. Geofencing can improve the success rate of other addressable campaigns. Digital marketing messages in specific households can efficiently be reinforced and followed up with direct mail pieces that consumers will recognize from ads on their devices.
Addressable geofencing supports conversion zone tracking.
Additionally, addressable geofencing allows conversion zone tracking. Conversion zone tracking enables you to track the number of people who have been exposed to your ads and then visited your physical location. Conversion tracking is something you can’t do with direct mail ads alone.
Geofencing advertising allows for multiple creative formats.
Addressable geofencing gives business owners unlimited opportunities to get in touch with consumers. Once your geofence set up, you can test different audio ads, video ads, display ads, and OTT/connected TV advertising campaigns. Further, you can specify certain ads to specific demographics and see how your consumers respond to your message.
Companies of all sizes and industries have used addressable geofencing with success. While it is an excellent marketing tool for brick-and-mortar locations, geofencing marketing is also highly beneficial for online organizations.
- North Face experienced an 80% increase in sales by shoppers who experienced ads tied to weather-related geofencing alerts. Even more, 65% of consumers who came in contact with the campaign purchased a product.
- BMW increased its yearly revenue with the creation of its own geofencing service. BMW Trackstar products track the position of your vehicle to ensure its security for an annual subscription fee.
- Taco Bell amplified annual sales by targeting users under the age of 30 with the Taco Bell app near a Taco Bell location. The campaign improved annual profits by six percent with geofencing, generating close to $600 million in additional benefits.
- American Eagle increased its revenue three times over by targeting mall locations that housed their retail store. By creating special offers and incentives with geofencing, the brand encouraged shoppers to choose American Eagle over competitors.
Geofencing marketing strategies
Addressable geofencing may sound simple enough, but it requires just as much tactic as your other marketing campaigns. Before you attempt a geofencing marketing strategy on your own, talk with a professional geofencing company about your needs and goals. Then incorporate these five strategies for a successful geofencing campaign into your marketing plan today.
1. Make your geofence the right size.
It’s easy to get excited about geofencing, and rightly so! However, companies should be selective in their marketing tactics. Oversized geofences won’t drive results and could even drive sales to your competitors. Addressable geofencing helps you create smaller, more compact perimeters.
As a general rule, target physical addresses that are within a 5-minute walk or drive from your store. Online stores will want to emphasize targeting specific demographics and consumer behavior to encourage users to visit their site, rather than a physical location.
2. Do your research!
The audience you target is imperative to the success of your geofencing ads. When you understand who your audience is, the things they want, and how they behave, you are better able to create a target area that will drive results. Additionally, you will be able to cultivate ads that will engage your customer base and encourage them to make a purchase.
If you’re not sure who your target audience is or are considering a revamp, consider partnering with geofencing companies. A professional marketing agency will help you analyze the data you have available. For example, if you are active on social media, you can interact with and see what your customers are saying about your product.
3. Create actionable ads
Try inviting users in with a specific call-to-action (CTA). Instead of saying, “Come in for a discount on our ice cream,” try “Buy one cone get one free, today only!” However, it’s essential to develop ads that people don’t view as self-serving or spammy. When you are promoting a new product, invite users to try versus telling them to buy it. An open invitation guides them to your sales funnel more naturally.
4. Reassess your data
Even if you are experiencing success with your addressable geofencing campaign, you’ll want to review your data often. Consumer reaction can change like the seasons, and you want to make sure that your geofence ads are fresh and relevant. If examining consumer analytics is foreign to you, consider partnering with a geofencing marketing company for the best chance of success.
5. Utilize all of your marketing techniques
As we mentioned earlier, addressable geofencing has the power to be a robust standalone campaign. However, pairing geofencing techniques with your other marketing efforts can pretty much make you unbeatable. Work with geofencing companies to integrate addressable geofencing with context targeting, content targeting, retargeting, and dayparting for the best results.
Is addressable geofencing right for me?
When you want to target homes and businesses with marketing precision, addressable geofencing should be a strong competitor. As consumer expectations and behavior evolve, companies have the opportunity to use the wealth of information right at their fingertips. Tailoring your marketing experiences to your audience means raising engagement, improving the individual customer experience, and ultimately driving ROI. Plus, if your competitors aren’t using it, they will be soon.
Today’s consumers expect personalization, and brands who use data-driven marketing campaigns to deliver tailored experiences are experiencing results. At Moblyft, we help businesses in all industries identify their goals and streamline their marketing efforts to promote their brand and drive sales.
If you are interested in learning more about how addressable geofencing can benefit you, contact Moblyft today. We will provide you with a media kit, our case studies, and discuss your campaign goals.