Geofencing Marketing is one of the main uses of Location Marketing. With Geofencing Marketing, advertisers are able to target users on a virtual defined area. Users are targeted based on their GPS position (in-app environment) or based on their IP Address location (in-web environment). Advertisers just need to set up the boundaries (fencing) with the desired locations.
2 ad companies specialized in geofencing marketing are Adsquare and Factual. These 2 companies are connected with most of the DSPs. Some have their own capabilities, like Google or AppNexus.
Geofencing Marketing is mainly used by retail, as users need to be close to the point of sale locations.
Questions advertisers want to ask
- What is the recency of the users? When are the users on the location? Is it on real-time os is a retargeting pool from users on that location? For how many minutes or days?
- What is the accuracy of the data? Advertisers can ask the level of the granularity for a particular piece of location data. A GPS latitude and longitude comprised of two decimal points can pinpoint a mobile user’s location to within approximately one kilometer, while four decimal points enable accuracy to within approximately ten meters.
- What is the precision? Is the radius customizable?
- What is the CPM associated with the geofencing targeting?
- Is the solution connected to the adserver? What attribution/reporting is generated (during or post-campaign)?
Attribution (Foot Traffic)
The attribution that advertisers use on geofencing targeting is Foot Traffic measurement. The Foot Traffic attribution is normally done by the company that sells the geofencing data/targeting.
Foot Traffic attribution can give insights like the location of the visitors, the hours, and demographics, but according to IAB, the 2 main methods are:
- Method A: Foot Traffic (Absolute) Did someone who saw my ad go into a store?
- Method B: Lift in Foot Traffic Did my ad drive an incremental visit to a store?