If you are looking to learn the significant distinction between geofencing vs. geo-targeting, you have come to the right place.
This article covers the major technological difference, an advertising comparison, and the flexibility of geofencing and geo-targeting.
Let’s get to it.
The digital terminology surrounding geo-fencing and geo-targeting can be confusing even for digital marketers.
As mentioned in our geo-fencing guide, geo-fencing primarily refers to the predesigned and predetermined distance to attain or retain a customer base. Similarly, your Wi-Fi or Bluetooth is used through a fixed location to send relevant push notifications to the customer.
Moreover, the proximity of the geo-fencing allows businesses to engage with customers and competitors selectively. Geo-fencing is ideal for companies that effectively want to reach out to the target market in a said area and find out customers’ fencing ratio.
Geo-targeting, on the other hand, does not create a virtual restriction, but combines your foundational strategy and segmentation. The advertisement approach is still defined, but you can set extended demographics for your customers.
A geo-targeting advertising campaign, for example, can be applied to an entire city or larger geographical location. This method is deemed ideal for companies that want to target a niche market with a specific age bracket, but also want to narrow down the behavioral segmentation of their customers.
With the rise of digital advertising, the reach of geo-targeting has become more extensive and effective in regard to programmatic and social ad campaigns. It is imperative to note that geo-targeting can be recognized through a dedicated zip code, city, state, and even country.
To sum things up, geo-targeting is a more personalized approach to reach the target market, while the geographical radius of geofencing is specific. Over the years, the small and medium-sized businesses (SME’s) have made the most out of geo-targeting, primarily because of its low-cost structure.
Collection of information
The foundation of a great advertising campaign is built on the collection of reliable customer information. Both geo-fencing and geo-targeting have discarded the need to indulge in unnecessary surveys or questionnaires to gather data.
Americans now spend almost four hours per day on their cell phone devices. Small and established brands have learned to uniquely position themselves in the market by keeping an eye on customers’ buying habits and changing shopping patterns.
What is the best strategic option
What medium strategies should you prioritize, at what time, and when? The answer to such questions depends on how you wish to cover the demographic range of your business. For SME’s, the utilization of geo-fencing is perfect for concentrating on a specific geographical location.
If your brand is gearing toward expansion, you should start playing with geofencing as it offers more functionality options and consumer segmentation appeal. Geofence advertising became more appealing to advertisers when brands realized that targeting local neighborhoods and communities was more effective than carrying out widespread advertising campaigns.
Geo-targeting and geo-fencing play an important role in your advertising campaigns. In essence, geo-fencing is comparatively more adoptive, but your decision to choose the right targeting will determine the success of your ad campaigns.
Need help with your geo-targeting or geofencing campaign? Contact us to discuss your campaign goals.