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

Don’t confuse geofencing with geotargeting. Like radius and polygon targeting, both options are used in location-based marketing but create the targeted location differently.

Here’s your chance to learn more about the difference between geofencing and geotargeting and determine 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. For example, ads can be created for a neighborhood rather than an entire state or city. This allows advertisers to develop hyper-specific campaigns that speak to the people's specific needs, interests, and pain points 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 3:1 ROAS (return on ad spend). In only 60 days of using geofencing paired with site retargeting, Agility drove a 34:1 ROAS, creating over $170,000 in revenue.

WHAT IS GEOTARGETING? 

Geotargeting is similar to geofencing in that it specifies an area where an advertisement will be served. The difference is how the boundaries are established. Geotargeting can target anyone currently or recently in the targeted area. 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, served 1.5 million impressions, yielding 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, it is more likely to reach unintended demographics.

Agility helped a hospital network drive qualified applications for nurses for multiple locations using geotargeting. We ran various campaigns targeting the areas serviced by the hospital network with geofencing. While some targeted areas had a more difficult time finding applicants, Agility improved 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. We aim to help brands meet their goals and get the most from their advertising budgets.

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