The Benefits of Geo-Fencing Digital Ads for Local Businesses

With the increasing movement of consumers from traditional web browsing (i.e. laptop and desktop computers) to mobile browsing on tablets or smartphones, advertisers are now using a new mobile marketing technique called geo-fencing when trying to target potential customers.

Geo-fencing is a variation on the more commonly known geo-targeting – that is, restricting the placement of digital ads so that they only show up to users within a predefined set based around the location of the user’s IP address.

Geo-targeting can make sure that your ads are only shown to the people in the specific state, city, or even ZIP code that you want, ensuring that impressions aren’t wasted on people that will never visit your local business. Geo-fencing takes this concept one step further by creating a “fence” around your defined area, such as a few square miles around your store, or along a strip of highway frequented by commuters. Ads will then only be shown to people who move into this fenced area.

Fifty-eight percent of national ad campaigns in Q1 2013 used some kind of geo-precise targeting; another 40 percent used basic geo-targeting. Geo-precision, in combination with things like special offers or event-based marketing, can help you get maximum return on your digital ad spend.

Nearly two-thirds of the American public now owns a smartphone of some sort.

In today’s age of instant information, almost any customer who goes to a restaurant, store, hotel or any place of business has already looked it up on a smartphone to do some quick research. Being that nearly two-thirds of the American public now owns a smartphone of some sort, it’s crucial that business owners make efforts to target potential customers through their mobile searches.

Harness The Power of Mobile Searches

  • 81 percent of shoppers conduct online research before buying. 
  • 78 percent of mobile searches for local business information results in a purchase. 
  • 90 percent of all American adults own a cell phone.
  • 75 percent of mobile shoppers have used a mobile coupon.
  • 42 percent of American adults own a tablet computer.
  • 32 percent of American adults own an e-reader. 
  • 74 percent of adult smartphone owners use their phone to get directions or other information based on their current location.
  • The average cell phone user checks their phone 150 times per day. 
  • 10 percent of Americans own a smartphone but do not have any other form of high-speed Internet access other than their data plan.

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102 thoughts on “The Benefits of Geo-Fencing Digital Ads for Local Businesses”

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