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Geofencing and Geotargeting; What's The Catch?

1/2/2020

 
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​Small businesses, be warned! Two of the most important tools in your online marketing toolbox sound very similar but they are two VERY DIFFERENT tools. It's time to break down their differences and pick the right choice for you and your company.

Happy New Year Everyone! We hope you had a wonderful holiday with your loved ones, and you're just as excited as we are to jump into 2020! One of the biggest things we were focusing on before the holidays set in was the challenges, changes, and inconsistencies of online marketing across many social media platforms. If you spend as much time as we do studying and working with advertising on places like Facebook and Instagram, you are very familiar with the fact that it changes constantly. It's hard to keep up with each change and how it affects your advertisements daily. These advertisement tools can determine your business growth and popularity online, so if you don't understand the changes in trends or are unfamiliar with the tools available to you, you could be in serious trouble. One of the biggest things we have been digging into is Geofencing and Geotargeting. This behind the scenes marketing tool can make or break an advertisement campaign without even trying. The names look so familiar, they much basically be the same thing right? Wrong! Although they are connected, you need to understand their main differences. When you understand the differences, you will be able to choose which option is best for your company. The best choice will help you gain more customers, followers, and supporters. First off, let's get down to the definitions.

GEOFENCING: Geofencing is when you draw an actual virtual fence with a predetermined chosen radius. This is used to target and connect specific people in a certain area to your advertisement. It is known to be more accurate than geotargeting. It uses GPS to make sure the audience you have targeted is being tracked and followed based on the coordinates of where they are in that exact moment they're online. When this chosen group of people is online, geofencing collects data and studies how long this chosen group of customers stays within the virtual fence and if and when they come back. This tool helps improve the engagement of local customers for your company and it can help attract customers away from your competition. The disadvantage of geofencing is that it can only target audiences based on physical location. Hand-picking demographics and certain groups of people based on anything besides location have nothing to do with who sees your geofencing advertisement.

Who is the best for? If you are interested in advertising to populations of all interests and ages in your local area, then it is a perfect tool for your company.

GEOTARGETING: This tool is very similar to Geofencing at its base. It does draw the same invisible fence, BUT demographics are included in its makeup. You create your virtual fence, and then you pick who exactly (based on age, interest, gender, etc.) will see your ad.  One of the main disadvantages is that you have to open up your advertisement geographic to a much larger area. You are being very specific about the type of people you want to see this add within a particular area So, to get as much of a result as you would with geofencing, the location needs to be larger to attract the same number of people in a geofencing situation.

Who is this best for? If you are interested in advertising to a very specific group of people inside a certain demographic or niche, then this is a perfect option for your company.

Spend time studying both options. I have just given you the very tip of the iceberg when it comes to using these tools, and there is a lot to dig into when choosing which to use. Understand how each could affect your company for the better or worse. Spend time understanding the consumers you have and those you're trying to attract. This might be the perfect opportunity to step back and define your company and who you want to serve. If you have the time and the means, experiment with both and see which outcome is best. But make sure to decide on one in the end, stick with it, and plan your advertising campaign accordingly. The work put into this decision could lead to a more dedicated consumer base and a fast conversion rate. All of us social media people love to see those numbers jump high and jump quick!

Here is to an exciting 2020, we can't wait to build a better business world with you one day at a time!
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