Location-based Marketing: Geotargeting vs Geofencing Guide

by Kristen

/
Geofencing
March 3, 2024

The world of real estate development is highly competitive and constantly evolving. To stay ahead, developers and builders need to use digital marketing solutions to effectively connect with their target audience. Among these solutions, geo-targeting and geo-fencing stand out as particularly powerful tools for location-based advertising.

Geo-Targeting: A Strategy for Location-Specific Marketing Campaigns

Geo-targeting allows for the delivery of personalized content to users based on their location data. This can include specific areas or a radius around a certain location. Zip codes are also an option for those not advertising real estate-related products.

It answers the question "what is geotargeting?" by allowing you to reach audiences in particular regions or neighborhoods where your new communities or amenities are located.

Google Ads and Facebook have robust geo-targeting capabilities. However, it's important for companies to use this tool strategically. While it can be tempting to cast a wide net, keeping a strategic radius ensures more accurate and valuable engagement. In other words, it's about quality over quantity.

Geo-Fencing: Real-Time Engagement within Virtual Boundaries

On the other hand, geo-fencing allows for real-time engagement. This technique involves setting up a virtual boundary—around competitors' properties, for instance—and triggering tailored notifications or ads when a user enters this zone.

Platforms like Simpli.fi specialize in geo-fencing, offering granular location-based ad placements. Builders can use this tool to highlight what sets their development apart when potential buyers are considering moving from competitors' communities.

Geo-fencing campaigns typically return better ROI than regular digital ads. They have lower CPMs and higher CTRs, resulting in higher returns on investment.

But the benefits of geo-fencing don't stop at immediate engagement. By setting up a 'conversion zone', such as your sales office, you can track the number of individuals who visit your property after seeing your ad. This data provides tangible proof of your campaign's efficacy.

The Power of Geofencing in Video and OTT/CTV Advertising

Geofencing extends beyond traditional digital formats and proves to be incredibly effective in video and OTT/CTV advertising as well. With the higher CPMs associated with OTT/CTV and video, you can expect a more significant ROI. This is because viewers are more likely to engage with visually appealing content, leading to higher conversion rates.

Geofencing's cross-device capabilities also come into play here. Users can be retargeted across various devices for up to 30 days, ensuring your brand stays top-of-mind.

Harmonizing Geo-Targeting and Geo-Fencing for Optimal Impact

Geo-targeting and geo-fencing have advantages individually, but when used together, they become even more effective. To attract attention to your new project, use geo-targeting. Then, when interested buyers are visiting other similar properties, use geo-fencing to show them specific ads.

By understanding the difference between geotargeting vs geofencing, and how to leverage these tools effectively, it can help real estate developers and builders create deeper connections with their target audience. By integrating these tactics into your digital marketing strategy, you can run more effective campaigns and ultimately drive increased conversions.

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