Geofencing vs Geotargeting: What’s the Best Option for Your Campaign?

When it comes to geofencing vs geotargeting, don’t make the mistake of thinking they’re the same thing. Like radius and polygon targeting, both options are used as part of location-based marketing, but they create the targeted location differently. 

Here’s your chance to learn more about the difference between geofencing and geotargeting and find out which one you should use for your next ad campaign. 

WHAT IS GEOFENCING? 

Geofencing is a tool used in digital advertising that establishes a digital fence or boundary to target an audience. But how does geofencing work? It uses GPS technology to create a fence for an advertising campaign. Any person who is, or has been, in the selected area can be targeted. 

WHAT IS GEOFENCING USED FOR?

Geofencing allows organizations to create targeted ad campaigns. It's possible to create ads for a neighborhood rather than creating an ad for an entire state or city. This allows advertisers to create hyper-specific campaigns that speak to the specific needs, interests, and pain points of the people within a defined area. 

Agility worked with an online juice seller and leveraged geofencing to fill the client’s conversion funnel with new users. Initially, the client wanted a RORAS (return on ad spend) of 3:1. In only 60 days of using geofencing paired with site retargeting, Agility was able to drive a 34:1 ROAS, creating over $170,000 in revenue. 

WHAT IS GEOTARGETING? 

Geotargeting is similar to geofencing in that it specifies an area for an advertisement to be served. The difference comes in how the boundaries are established. Anyone currently in the targeted area, or has recently visited there, can be targeted by geotargeting. The advertiser establishes a polygon of streets and locations in geofencing to create their digital fence. The shapes and sizes of these fenced areas can be small and simple, like a city block, or large and complex. 

Agility helped a local magazine reach its target audience by leveraging geotargeting. Geotargeting paired with programmatic display ads was able to serve 1.5 million impressions that yielded an amazing .23% CTR.  

HOW IS GEOTARGETING USED? 

The biggest difference between geotargeting and geofencing is the accuracy of the location. Because geotargeting uses a radius based on a single location, there is a higher chance of reaching unintended demographics. 

Agility helped a hospital network drive qualified applications for nurses for multiple locations using geotargeting. We ran multiple campaigns targeting the areas serviced by the hospital network with geofencing. While some targeted areas had a more difficult time finding applicants, Agility was able to improve performance in those areas by combining geofencing with general prospecting. Ultimately, Agility was able to help the network serve over 18 million ad impressions which drove over 42,000 applicants. 

GET STARTED WITH AGILITY

Agility's platform makes it easy for anyone to use geotargeting or geofencing for their next ad campaign. We make creating an effective and creative ad campaign straightforward and intuitive while providing relevant analytics at every point in the campaign. We aim to help brands meet their goals and get the most from their advertising budget. 

Contact us today and see how Agility can help you use geotargeting and geofencing in your next ad campaign.