opens IMAGE file Geofencing is one of the best ways that advertisers can compete in today’s digital sphere. We know that mobile is the best way to reach consumers and that consumers are highly engaged on the go. However, just because geofencing sounds amazing, this doesn’t mean that it is a highly effective technique for all businesses. Geofencing still faces some key challenges and a savvy business should consider these challenges before diving head first into geofencing with their digital advertising.
Challenge #1: Relevance
Geofencing advertisements are difficult to personalize at this stage of the game. It is hard to narrow your reach to various mobile applications. Therefore, you never know if your mobile advertisements for car sales are going out to adults who can actually buy a car, or a teenager who is years away from considering a purchase like this. Personalizing advertisements and making them relevant to the end viewer is extremely difficult to accomplish.
Challenge #2: Sales Funnel
We know that most consumers think about purchases long before they ever convert, and therefore, large purchases do not typically work well for mobile/on-the-go purchases. The cost to get someone into your sales funnel may be better served in very targeted display and banner ads where you can control and retarget your audience accordingly. Mobile advertisements that rely on impulse buys typically work better for businesses that sell smaller items like coffee, snacks, or other smaller purchases.
Challenge #3: Privacy
Privacy is a major concern in today’s world, and especially for mobile users. Millennials and younger are wary of brands already, so if they find out that you have used their information without being obvious about it, you’ll lose trust immediately and forever. Be upfront about how you will use their information and if you’ll be using it for targeted geotargeted ads.
Challenge #4: Ignoring Eyes
Just as there are places online that we know most internet users glance over because they are numbed to the ads placed there, the same happens on mobile. There is a growing trend of mobile users putting up with ads and closing them/blocking them as soon as they have the chance.
Despite these challenges, many brands can succeed with geofencing. However, if you aren’t aware of the potential challenges, you will fall prey to them much more often. Smart advertisers will harness geofencing with an analytical mind, as we encourage you to do with any digital advertising. Think through what and why you are doing specific advertisements and then ALWAYS measure their effectiveness for longterm success.