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The Secret Weapon of Dealership Marketing: Geofencing

November 22, 2022

What is Geofencing and How Does it Work?

In a nutshell, geofencing is a way to target ads to people within a specific location like a competitor dealership. You can create a “virtual fence” around a competitor dealership (or other locations), also known as target zones. These fences ensure that your ad only reaches the people who visit that location. In the case of a car dealership, it implies that these people are more likely to come in for a test drive. The ads generally follow the target audience for up to 30 days, appearing on any website or app they access.

Remember, where people go is the strongest indicator of buying intent. Therefore, if someone is visiting a competitor’s location, it is a good sign they are in the market to buy a car. Statistics show people visit 1.7 car lots before they purchase a vehicle.

Additionally, you can track people receiving ads who visit your lot or dealership. In this case, your showroom or dealership is the conversion. The idea is to drive people from the target zones to the conversion zones, i.e., your business area.

Geofencing the conversion zones allows you to track the physical traffic at the location. You can assess the number of people visiting the lot after seeing your ads. It enables the tracking and measuring of online-to-offline conversions, supported by robust reporting. Therefore, when a prospect visits a conversion zone after seeing an ad will be counted as a conversion.

Hence, it provides a precise ROI on your advertising dollar. You can track distribution of impressions, number of clicks on ads, and also monitor the physical visits to your car lot in real time. Click GetGeofencing Client Dashboard for more information.

What are the Benefits of Geofencing for Dealership Marketing?

Geofencing has multiple benefits for dealership marketing. Research shows that geofenced ads have a 30% higher conversion rate than traditional advertising. Moreover, it’s very affordable, effective, and easy to set up. Hence, you can make a quick call to www.getgeofencing.com to set up your campaign. We run these campaigns within 24 hours after the approval of creatives.

Your greatest advantage is that you can take your brand in front of people ready to buy. To summarize, you can increase brand awareness to a ready-to-buy audience and deliver your ads to the right people at the right time.

How to Set up a Geofence Marketing Campaign for Your Dealership?

At GetGeofencing, we have run hundreds of car dealership marketing campaigns. From developing the creatives to launching the campaign and reporting, we make the process easy. Therefore, if you choose us, we are with you in every step.

One of the best places to find your audience is at competitor locations. Geo-Fencing provides a unique opportunity to address a common marketing goal to conquest competitors. Using this campaign, you can get your brand name in front of a relevant audience. Significantly, you can track and measure your return on investment for the campaign.

It allows you to;

  • Reach consumers with timely offers when you know they are in the market for a similar product or service.
  • Promote a price-matching guarantee or other promotional offers to entice customers.
  • Increase market share by attracting competitors’ customers.
  • Highlight key differentiators over competitors.
  • Build awareness of your brand by engaging your target audience with compelling offers over your competitors.
  • For regularly recurring purchases, retarget consumers who visited your competitors recently. You can also reach them when they are ready to repurchase a similar product or service.
  • Complement the geo-fencing campaign with other tactics to reach users throughout the purchase cycle.

There are different ways to create a successful geofencing campaign. Here are a few tips to get you started:

  1. Make sure your ad is relevant to the location– People are more likely to respond to an ad specifically targeting to their location. Mention the city or neighborhood in your ad to capture local interest.
  2. Keep your ad short and sweet– People’s attention span is short, so make sure your ad is concise and to the point.
  3. Use strong call-to-actions– Tell people exactly what you want them to do, like “come in for a test drive.”
  4. Offer incentives– Give people a reason to come in, like a discount or freebie.
  5. Test, test, test– Try out different ads and see what works best for your dealership.

Examples of Dealership Marketing Geofence Campaigns

Here is a current campaign:

dealership marketing

The black line represents impressions distributed to people visiting competitor dealerships in the local area. Timeliness is a huge factor. Hence, in this campaign, we target potential customers visiting competitor dealerships in the last day. Here, we have distributed 55,000 impressions so far.

The blue line represents a click on the ads. These are people clicking the ads after viewing them on a website or app. It is a very strong representation of interest. This campaign has generated 56 clicks on the ads.

Finally, the gold line represents actions. These are competitors’ prospects visiting our client’s dealership. This campaign has currently tracked 24 actions.

We also feature reports detailing what competitor location they came from.

On an ending note, go to www.getgeofencing.com and schedule a quick, free Zoom call. We have experts who understand your objectives, answer your questions and also develop a strategy to meet your sales goals.

Contact us for more information about Geofencing and how it works!

Chris Seminatore Get GeoFencing

About The Author:

Christopher Seminatore is the Managing Partner at GetGeofencing. He is ex-Naval Intelligence, graduated from Miami of Ohio, currently resides in Baja California and guest lectures at UC Irvine on Hyper-Local Marketing for the Business Administration Master’s Program. Mr. Seminatore is an avid motorcycle enthusiast that hates working out but does it anyway. Go Bengals, Go Rams!  

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