One of the key reasons as to why all the big advertisers worldwide are pumping huge sums of money in the Mobile space is due to strong targeting options offered by the digital agencies &/or publishers & ad-networks. As a media professional, if today you wish to join Mobile Advertising Industry, one of the key elements you should understand is how technology actually allows us to pin-pointedly identify, interact, engage & finally transact with the right audience &/or customer.
A lot of you who are new to this space, end up using Geo targeting as a generic term, which is an incorrect approach. Here's how Geo targeting is further sub-divided into different parts which are relevant to specific brand objective.
A Geo-fence is a layer of intelligence that allows you to make decisions or take some action based on a geographical area. It can circle anything/ any area you like – a retail store, a stadium, a neighborhood.
Understood and used correctly it can double the ROI on your marketing campaigns, increase the loyalty of your customers, and reduce operational expenses. A Geo-fence is a highly effective way to send locally-targeted, relevant content to your customers at times that most benefit your business. Run a happy-hour? You only need to look up the location of your customers and send them a promotional message once a day to drive traffic. Sales slow between 10-11am? Look up the location of all customers in the area at 9.30am and send them a coupon to redeem when they buy something in (what used to be) that slow hour.
App Based Geo-fencing
You can build an App-based Geo-fence that, as the name suggests, requires you have an app to access GPS data. The most common misconception about App-based Geo-fencing is that once you build your app you will be automatically notified anytime one of your customers enters or exits a Geo-fenced area. The truth is your customers not only have to find your app in the app store or android market, but that app actually has to be running (and killing your customers’ battery) to know if a geo-fence has been crossed.
Network Based Geo-fencing
With Network-based Geo-fencing you don’t need an app to run a Geo-fence campaign. Building and maintaining an app is expensive for a mid-sized brand, and even if your customers download it, if they don’t open it and run it when they’re in your Geo-fence it’s irrelevant.
Not to mention apps only run on smartphones. Yes, smartphone adoption may be on the rise but over 40% of the US population are still using feature phones. That’s a lot of people you can’t target with an App-based Geo-fence campaign.
Network-based Geo-fence campaigns can target any mobile user connected to a cellular network. And the more people you can target the more effective your campaign will be. There are also no upfront costs involved. Cost is determined on a per-location look-up basis and can be dialed up or down as required.
To summarize the comparison and help you decide if App-based Geo-fencing or Network-based Geo-fencing is the right choice for your business, Loc-aid, the world’s largest LaaS (Location-as-a-Service) company, has created the following comparison chart.
Source : Direction Magazine