Around 71% of consumers prefer more personalized ad experiences. Examining the cost of geofencing marketing will teach you a lot about the value you’re getting out of a campaign.
About 3 out of 4 consumers complete an action after receiving a message thanks to location-based marketing. With geofencing, you can target exact audiences in precise areas and drive sales your way.
Even if you don’t get sales, geofencing still increases brand awareness, so it’s a win/win strategy. Nonetheless, how can you be sure you’re getting your money’s worth?
Here’s what you should know about the price breakdown of geofence marketing:
Geofencing Marketing 101
A geofence is a virtual boundary that defines a specific geographic area with GPS (global positioning system) or RFID (radio frequency identification). When someone enters this defined area, your business’s advertisement will appear on their device/smartphone. They could also see a message, update, or other notification about your promotion.
Strategically placing geofences around certain hot spots will encourage customers to check out your business. This includes competitors’ businesses.
Many geofence companies charge based on CPMs. CPM stands for Cost Per 1,000 Impressions. Dividing the number 1,000 by the rate will tell you how many impressions to expect.
For instance, a $14 CPM rate equates to 71.428 impressions. This means your ad or notification will appear 71.428 times on people’s devices as they pass through your geofenced area.
Geofencing campaigns usually charge rates between $15 to $17 CPM. Higher-end geofencing services could cost up to $25. However, costs could also depend on the following:
Number and Size of Geofences
Other marketing companies charge based on the amount and size of the geofences they build for you. Some charge $5 per geofence while others prefer a monthly fee of $20 or more.
The cost is largely determined by the size of the geographic area you’re geofencing. A larger geofence typically costs more than a small geofence. For this reason, you could easily get 10 to 20 geofences out of a $1,000 Google geofencing budget.
This is a good option for business owners that have a limited marketing budget.
Take the Professional Route
Using your own marketing software will give you the biggest inside scoop. Square Marketing pricing starts at $15 per month. Researching different kinds of geofencing software also gives you a better idea of pricing rates.
Warning: Learning about geofencing and marketing takes a lot of time and effort. Mistakes could cost you big time.
It’s safer to hire trusted professionals to execute a geofencing campaign for you. Their skills and expertise are worth the money! Feel free to find out more about the top geofencing companies through the aforementioned link.
Let Geofencing Benefit Your Business
BIA Advisory Services predicted that location-based marketing spending in the U. S. will increase to $38.7 billion in 2022. Still, the cost of geofencing marketing also depends on how many other features are included in it. For instance, social media notifications and advertisements cost more in the geofencing world.
Companies offer different levels of transparency. More information translates it into higher costs. It also might cost more to convert an existing marketing campaign into a geofencing one, but you’re better off late than never!
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