Infographic: The State of Geofencing Marketing
December 16, 2020 by
What is geofencing marketing?
Geotargeting and location-based marketing carry broad definitions. Geofencing marketing is a more granular and more customizable strategy that lets marketers capture exactly the audience they want to understand, reach and measure. It allows marketers the ability to target at the brand or store level and is accurate down to the meter. It equips marketers to advertise to high-intent, in-market audiences and then measure online-to-offline results through foot traffic attribution.
Marketers’ perceptions and usage
It’s a great time to be a digital marketer, and it’s also one of the hardest times to be a digital marketer. The pressure is on to deliver revenue so there’s always pressure to choose the best methods for driving sales.
Mobile Marketer tells us that nearly 90 percent of marketers use location data in campaigns. Merkle says that more than 60 percent of marketers use location data to create more personalized experiences for consumers. And eMarketer research shows that there is a 40 percent increase in investment in location-based advertising year over year. This makes geofencing one of the fastest-growing marketing strategies for agencies, brands, retailers and media companies. Location data and geofencing marketing advertising have definitely come into their own.
Consumer perceptions
81% of Americans now have smartphones and 71% of them are willing to share their location. This comes with a few caveats.
- 52% are willing to share their location if the benefits are clear
- 34% are willing to share their location for marketing purposes
- 59% know their location is used to enable tailored ads
- 70% have opted-in to sharing their location
Adoption by industry
Top five industries where marketers see the most opportunity for geofencing marketing:
-
- Food and beverage
- Health / Beauty / Fitness
- Entertainment
- Grocery
- Pets / Animals
Top five industries where marketers are currently running geotargeted ads:
-
- Health / Beauty / Fitness
- Grocery
- Food and beverage
- Entertainment
- Pets / Animals
Over two-thirds of marketers run their geofencing marketing campaigns on Facebook and Instagram. There is even more potential because while Snapchat, Tik Tok and Pinterest accept location-based audiences, only 10-15% of marketers are currently running geofencing campaigns on those social channels.
Performance benchmarks
80% of marketers say their geotargeted audiences do about the same or better than other targeting strategies
One agency saw a 245% better than average click-through rate on Facebook. Read this case study.
Another Agency saw a 600% increase in qualified leads. Read this case study.
Infographic Sources: eMarketer, Reveal Mobile, Mobile Marketer, Merkle
