What Are Geofencing Ads? 3 Examples of Campaigns You Can Run

By Raubi Perilli

      Jan 6, 2022     Solutions    

When you run a local business, you need to leverage every marketing channel that can help you effectively reach new customers and bring existing customers back to your business. One way to do that is through geofencing ads.

What Are Geofencing Ads?

Geofencing ads are a form of display advertising that targets customers based on their location. Through geofencing marketing, a virtual boundary is created around a specific geographic region, property, or business. As people enter or exit the designated boundary, a marketing action is triggered. In most cases, people who enter the designated boundary receive a targeted display ad on their mobile device.

How Do I Set Up Geofencing Ads?

To set up geofencing ads, you need geofencing software that uses GPS to create virtual boundaries around an area. For marketing purposes, the geofencing software must also be able to send display ad content to the mobile devices of people who enter the virtual boundary.

In most cases, businesses don’t need to set up this technology on their own. They can partner with a geofencing ad provider to run campaigns.  

MyArea Network has a partnership with the leading geofencing software provider Simpli.fi, which allows us to set up geofencing marketing campaigns for local businesses. Through this partnership, local businesses don’t have to take on the technology on their own. They can work with MyArea Network to design a campaign, and we will execute it using our established geofencing and programmatic advertising software.  

Related: Drive More Customers to Your Local Business Using Addressable Geofencing

How Do I Measure Conversions from Geofencing Ads?

The best type of advertising allows you to easily measure results. This isn’t always possible with every type of advertising. But, with geofencing ads, you can easily measure the effectiveness of your campaigns.  

When you set up a geofencing ad campaign, you can create a geofencing conversion zone. A geofencing conversion zone is typically placed around your business and allows you to count the number of people who saw your geofencing ad and then visited your business.  

Geofencing conversion zones allow you to measure the effectiveness of your campaign and clearly see how many people saw your ad and then visited your business.

3 Geofencing Ad Examples

To see geofencing ads in action, consider these three campaigns we’ve run and the results we’ve seen. See how effective geofencing is when campaigns are strategically designed and easily executed through established geofencing software.

Use a geofencing ad to drive in more customers.

If your local business wants to pull in new customers from the nearby area, a geofencing ad campaign can accomplish this. We ran a successful campaign for one of our partners, a nightclub and bar that wanted to increase foot traffic into their location.  

  • We launched a geofencing ad campaign by first drawing a virtual boundary around 13 of their competitors.
  • Since their target audience was visiting these locations, we knew customers would likely be interested in our partner’s business.
  • With just a small investment of $250, the geofence ad was viewed 25,521 times, and it drove in 32 new customers.

With an average check of $20, the 32 customers produced an estimated $620 in revenue, producing a 156% ROI for the ad.  

Related: How to Use Competitor Targeting to Find and Attract New Customers

Use a geofencing ad to share updates with customers.

When your business makes changes and updates, you need to get the word out. A geofencing ad is a good way to spread messaging with the people who are most likely to be interested in your news. This was the case with one of our partners running a local bar and grill. When they made renovations to their location and updates to their menu, they wanted nearby customers, already familiar with their brand, to know about their updates.  

  • We created a geofencing ad that would target the locations of 52 bars and restaurants near our partner’s location.
  • When a customer entered one of these target locations, they were presented with a display ad on their phone that highlighted our partner's bar and grill updates.
  • The geofencing ad was seen 98,772 times and drove in 133 new customers -- all with a budget of $600.

The geofencing ad produced a 343% ROI, driving an estimated revenue of $2,600 (based on an average $20 check per person).  

Related: Geofencing for Restaurants: How to Attract Attention & Increase Store Traffic

Use a geofencing ad to increase revenue.

No restaurant wants an empty dining room. Geofencing ads are one way to keep your restaurant filled. When our partner, a high-end steakhouse, wanted to drive new diners in for dinner, we worked with them to launch a geofence ad campaign.  

  • We targeted seven hotels and 22 restaurants that were located near the steakhouse.
  • Our campaign planned to get in front of both locals and people who were traveling to their area. Travelers likely included people on vacation or traveling for work who might be inclined to enjoy a high-end dinner.
  • With a minimal ad investment of just $212, the ad was seen 22,630 times, and it attracted 19 new customers.

A small investment produced valuable results for the restaurant. With an average ticket size of $60, the 19 customers produced an estimated $1,140 revenue for the steakhouse. The small $212 investment produced a 437% ROI and shows how geofence ads can be powerful even with just a small budget.  

Related: Addressable Geofencing: How to Use Location Targeting to Reach Customers

How to Launch Geofencing Ads

As you can see, geofencing ads are a powerful way to promote your local business. They allow you to pinpoint the people you would like to reach, get in front of them, and track the results of your campaign with clear metrics.  

While setting up geofence ads from scratch can be complicated, it's easy when you work with a partner who already has access to geofencing software. If you’d like to see how geofencing can produce up to 437% ROI for your business, let’s talk.  

Schedule a call with MyArea Network to see how we can quickly get your geofencing marketing campaign up and running.