How Geofencing is taking Over Traditional Advertising And Improving ROAS

Geofencing makes marking more efficient and is highly preferred to traditional advertising for identifying prospects and clients based on their location and you can use this to gather information and topics about people who are based in such locations.
It is the process of accurately targeting a brand’s most likely customers. Traditional advertising is one random process of targeting a Broad range of individuals using many different means and across a wider area. At DEO Marketing Pearland SEO experts, we employ Geofencing while running ads, and this allows us to define boundaries and locations.

What is ROAS?

ROAS is an acronym for Return On Ads Spent and it is a measuring metric in marketing that has to do with the amount of revenue you earn as a marketer for every dollar you spend on the advert. ROAS basically measures the ROI of any amount a business spends on digital advertising. It can be measured based on campaign or targeting.

There is the formula for measuring ROAS and it is;

ROAS= Revenue attributed to ads ÷ cost of ad

An example is if you invest $200 into an advert and generate $500 in revenue from the ad, your ROAS will be calculated as;


This Would give 2.5 which is a positive ROAS.

Why is Geofencing Needed by Marketers?

When setting up a business, a marketer’s core goal should be to get clients within or outside the area of residence. Marketing is always location-based and hence you deal with people and their demographic. Location is vital in business and Geofencing makes that happen with the goal of reaching people in specific locations.
Geofencing allows you to target people who are likely to shop at a specific location based on proximity, brand affinity, and other attributes. For marketers, this is a more efficient and cost-friendly strategy.

Benefit of Geofencing In Marketing

Geofencing Marketing is taking over and is becoming a more advanced type of traditional advertising. It has the following benefits for marketers.

  • Drive More Local Traffic: Geofencing helps to identify people and customers who are in your locality and target enticing ads to them so they would have no choice but to take part in your sales.
  • Timely: Geofencing is preferred to traditional advertising on most occasions due to customers’ actions and the need to be delivered immediately. With Houston SEO Geofencing strategy you can market as soon as possible and get to customers at their most approachable moment.
  • Cost-effective: Traditional advertising takes a lot of resources to deliver your ad across a broad range of demographic and devices. With Geofencing you can target your ads to specific areas. You should also know that with proper research you get your ads in front of the right audience who would be willing to patronize your brand.
  • Geofencing can also utilize GPS tracking to help know when someone leaves a specific geographic location you are targeting.

Disadvantages Of Geofencing

For every marketing strategy that is being introduced or implemented. There is going to be a good or a downside. It is likely preferred that you not only focus on the benefits but take into consideration the disadvantages and how they may affect your business or brand.

  •  In occasions where you do not do thorough research before starting an ad, there is a high chance that you may target the wrong area and end up losing your ad cost in the process. Some business owners who want to bypass that would end up adding a fee for different localities. This also means more cost of ads has been put in place.
  • Some of the Grofencibg platforms may put a fence around the particular amount you are permitted to pay for an ad. This would lead to high costs for some startups that cannot afford that.
  • Not every ad platform can target a specific locality you may want to input the available localities and end up wasting your cost of the ad and getting no revenue in return.

How To Track The Success Of your Geofencing Campaign

Geofencing advertising targets a physical location. Therefore it is possible for a person to see your advertising once they enter in their location that is the same as yours. Here are a few tips to take to ensure a successful campaign:

  • Choose a Location: You should be careful in choosing this one as it would generally affect the number of people who can see your ad. It would also affect the cost of ads and the platform that would be more convenient for you.
  • Choose your platform: Almost every advertising platform has a geofencing option. The need to choose your platform depends on how large the locality in which you want to target. You may want to target as small as a town or state or as large as a country. You should know that when you are targeting a country you would want to go with a big platform such as Facebook or Google.
  • Choose your Tracking Metric: Here you have to look out for what you want to target. It Goulding be impressions, click-through rate, or store visits. The store visit helps you track how many people visited your physical store. One other point to consider is that your ad is created and optimized for mobile devices so that people can access your ad from a mobile phone.
    Geofencing is preferred to traditional advertising because you literally get to meet your customers where they are and at their point of need. This in turn would make them engage and visit your store if possible. Geofencing is also a way to keep your brand or business in customers’ minds in case they want to visit your location in the future.

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