Location-based marketing is bringing mobile advertising to the next level, making it way more effective than ever before.
Geofencing is a term used in mobile marketing that refers to setting up virtual fences or boundaries around a specific geographical location. This implies that while people are within that specific area they’ll be served with specific advertisements that apply only to them.
Location-based targeting can be extremely beneficial for your mobile campaign for multiple reasons. First, it allows you to personalize your message so potential customers can strongly relate to your creative, and indirectly, to your bank. By mentioning the name of a neighborhood, a college campus or another known landmarks around the area, you will grab your audience’s attention much faster. Research shows that brands can expect as much as a 20% increase in conversions by adding location data to their ads.
In addition, location targeting will help you stretch your marketing budget. The cost of mobile marketing is based on the number of impressions your campaign receives. You pay a specific amount when a thousand impressions have been served (referred in the industry as CPM or Cost Per Mile). Therefore, if you blanket an entire city instead of targeting specific geographical areas, you’ll be paying for impressions that are being served to people who might not necessarily be interested in your offer or product. Keep in mind that not everyone has the same needs.
And finally, geofencing or hyperlocal targeting also allows you to geo-conquest your competitors. Geo-conquesting is a fairly new idea in the mobile advertising sphere that utilizes location-based marketing to direct potential customers to your bank when they are close to or in your competitor’s branches.
As you can see, there are a lot of great opportunities for your bank to explore the geofencing capabilities that mobile advertising has to offer.