The ability to deliver custom messages to users when they are nearby represent an incredible opportunity to market directly to consumers in a hyperlocal context.
Geofencing is a powerful solution: Mobile ads using geofencing have more than double the click-through rate (CTR) of other ads. 72% of consumers take action when receiving offers when near the physical location of retailers. When you combine these two facts – and the 3.5 billion people with smartphones – it’s surprising that less than a quarter of companies use geofencing and location-based advertising.
That’s good news for you. Geofencing is a way to stand out for your competition and exploit marketing channels they may be ignoring. So, how do you pick the right geofencing vendor?
Finding the Right Geofencing Vendor
Before choosing between geofencing companies, you need to do a little due diligence. Here are some of the major items that should be on your checklist when shopping for a geofencing partner.
Diverse types of location targeting
It may sound like a simple question, but the answer can make a big difference. Some companies are limited in scope. They may only draw circles around GPS targets or have extremely wide fences. You want the ability to customize your geofence tightly around designated areas and draw them in any shape you want.
You also want to have as many geofences active as you need at any given time. Some companies will restrict the number or cap them at 20. You need the flexibility to manage as many geofences as you want.
Finding out about the ad performance is crucial to ensuring success with your campaigns. You need to be measuring conversion metrics like walk-ins to determine the return on ad spend. This is not an off-the-shelf feature that vendors offer.
The quality of data and the way in which it is processed is essential for accurate measurement of performance. A good geofencing attribution solution takes into consideration additional aspects such as recency, cached location data, and other false data points. And applies the necessary filters to weed them out and calculate conversions with utmost accuracy.
Location Data Collection
Make sure the geofencing partner you work with also is actively collecting location data about your users. This can be used to market to them with even more targeted approaches, including retargeting and messaging. This might include mapping out how they move through your retail space, for example, and how much time they spend areas. If you are delivering an offer for a specific product, you’ll want to know if they responded.
Specialists in Your Industry
There are a lot of geofencing companies out there, you want to work with someone that specializes in your vertical. They will be better attuned to your industry’s specialized needs and have experience with others doing what you do.
Working with agencies usually involves an SLA. Unlimited geofencing is just one example of how you need a geofencing partner to be flexible. You also want to work with someone that is flexible and won’t just plug you into package solution A.
Every business is unique. The right geofencing companies will focus on you. They’ll spend the time to understand your business, your goals, and design a program to deliver the results you need.
White Label Solutions
If you are a media company, advertising agency, or marketing company, you want to work with someone that provides white label solutions. This allows you to brand the geofencing service any way you want while still working with industry-leading geofencing partners.
The best agencies are the ones that have an expansive network. Accessibility to technology vendors and industry-leading advertising networks is priceless. Working with an agency that has a strong network can make a big difference.
Consistent Reporting Practices
You also need to work with geofencing companies that can provide regular reporting on-demand so that you can ensure your marketing dollars are being spent efficiently. While metrics like Impressions, CTRs, and Dwell Time are good to know, what you want is data about conversions. What’s more important is how many people saw a campaign and took the action you wanted. After all, it’s about making the cash register ring.
Choosing a Geofencing Partner
When choosing between geofencing companies to be your geofencing partner, make sure they have the expertise, tools, and capacity to take care of your business as if it were their own.