As a business owner, you’re always looking for innovative ways to reach more customers and increase your profit margin. If you’re not yet familiar with geofence marketing, it’s time to learn more! Geofence marketing is a powerful way to target potential customers in your area. But how much does geofence marketing cost?
In this blog post, we’ll break down the costs associated with geofence advertising, so you can decide if it’s the right strategy for your business.
What is Geofencing?
Geofencing is a marketing tool that targets people who enter a predetermined area, or who have visited a geofenced location recently. For example, you can geofence a competitor’s store and serve ads to people who visit that store. At the same time, you can geofence a trade show or convention center and serve ads to people who attend that event.
Geofencing Platform Devices
It is important to note that geofencing campaigns cover all platform devices including cell phones, desktops, laptops, and even television. Usually, this is done through the WIFI connection. When someone comes home and their cell phone docks with their WIFI connection, agencies distribute the ads to their devices.
The cost of geofencing marketing really depends on how you want to distribute your ad. For instance, video geofencing costs more than static display geofencing. And Connected Television geofencing costs more than video geofencing. The good news is that you can control your budget by choosing the right distribution method for your needs.
To know the cost, we need to talk a little bit about distribution methods. Generally, marketers distribute ads in four (4) different ways:
- Targeted Display Geofencing
- Connected Television
- Podcast Geofencing Ads
Targeted Display Geofencing Ads
Targeted display geofencing ads are the most common type of geofence marketing. You can distribute these ads to your audience who have physically visited a geofenced area or target location. Marketers collect the data from the geofenced area and serve 3-5 ads a day for up to 30 days. When the users visit certain websites and apps, these ads appear programmatically.
Programmatic ad distribution is an automated way of buying and selling ad space. It allows buyers and sellers to connect and transact without the need for a human mediator. This type of geofence marketing is very efficient, making it one of the most popular methods among businesses of all sizes.
The second type of geofence marketing is video geofencing. Video geofencing is similar to targeted display geofencing. However, these ads come in a video format instead of a banner format. You can serve these videos on different websites and apps that your targeted audiences visit regularly. As a matter of fact, video geofencing is also done programmatically just like display ads.
The third type of geofence marketing is connected television geofencing. Generally, you serve Connected television geofencing ads to users who have physically visited a geofenced area or target location. You distribute these ads on different connected television platforms, such as Roku and Amazon Fire TV. Like targeted display geofencing and video geofencing, the ads are served programmatically.
Podcast Geofencing Ads
Podcasting is a new and powerful way to get audio ads in front of targeted audiences. This type of geofence advertising targets listeners of specific podcasts.
Due to the rise of podcasts, geofence marketing agencies can broaden the horizon of targeting customers innovatively. Now, businesses can serve ads to listeners of specific podcasts. This type of geofencing is very effective because it allows businesses to target a specific audience with laser precision.
Podcast geofencing is a new and exciting way to reach your target audience. Hence, if you’re looking for a cost-effective way to geofence marketing, podcast geofencing is a great option.
The Cost of Geofencing Advertising
Now that we’ve covered the three types of geofence marketing, let’s talk about cost. The cost of geofence marketing varies depending on the type of geofence marketing you choose and the size of your target audience.
Targeted Display Geofencing Ad Rates
The cost of display geofencing ads depends on the size of the area you are geofencing and the number of impressions you want to serve. Campaigns start at $800.
Video Ad Rates
The cost of video geofencing depends on the length of the video, the number of impressions you want to serve, and the size of geofence you want. Campaigns start at $1900.
Connected Television Ad Rates
Television is still the king. Connected television campaigns can dramatically increase the entire sales funnel, from brand awareness to direct response.
As you can see, the cost of geofencing marketing varies depending on the type of geofence marketing you choose and the size of the area you want to cover. Meanwhile, the cost of connected television geofencing depends on the length of the video, the number of impressions you want to serve, and the geofenced area. Campaigns start at $4500.
Podcast Geofencing Ad Rates
Podcast geofencing is a new and exciting way to reach your target audience. The cost of podcast geofencing depends on the length of the audio clip, the number of impressions you want to serve, and the size of your geofence. Campaigns start at $2500.
Summarizing the Benefits of Geofence Marketing Campaigns
Now that we’ve covered the cost of geofence marketing, let’s talk about how geofence marketing can benefit your business.
Geofence marketing is a powerful way to reach your target audience. It allows you to promote your business through display ads, videos, etc., to people who enter a geofenced location. Therefore, you can track and target audiences depending on their behavior, location, and potential to be your customer.
There are four main types of geofence marketing: targeted display geofencing, video geofencing, connected television geofencing, and podcast geofencing. The cost of geofence marketing varies depending on the type of geofence marketing you choose and the size of your target audience.
You can hit right at the bull’s eye with targeted display geofencing, which is why it works great for brand awareness and top-of-the-funnel marketing. Almost every major brand has a targeted display advertising campaign.
Video geofencing works well for mid to bottom-funnel sales strategies. It is best if brand awareness is already in place. It helps to engage your audiences with visualization.
Connected television geofencing offers an engaging consumer experience. Thus, it works the entire sales funnel, from brand awareness to direct response.
Podcast geofencing is comparatively a newer way to connect with your audiences through audio medium. It is a cost-effective way that works effectively for top to mid-funnel sales processes.