Ask the Expert: When Should Local Advertisers Use Location-Based Retargeting?

What Is Location-Based Retargeting?

Gareis defines location-based retargeting as a subset of geofencing campaigns. The tactic allows advertisers to retarget people on mobile devices after they leave a fence. She shared this example.

An advertiser has a geofence around car dealerships. A consumer who spends time in this geofence looking at autos may not make a buying decision too quickly. That person exits the fence but later may see display ads (static or video) from the company that initially set that geofence.

As long as someone has enabled location services on their mobile device, they can be a potential audience for location-based retargeting. Depending on where the fence is, ad ops configurations can set a time threshold for which a device needs to be in the area. Doing so can exclude those just driving by who may not be part of a target market. Typically, there is a 30-day lookback window for serving these ads.

What Are Some Use Cases for Location-Based Retargeting?

Besides car dealerships, which are ideal because vehicles have a longer buying cycle, Gareis shared these other scenarios.

Dog Boarding and Boutiques

Dog lover describes many Americans. More than 65.1 million households in the U.S. are home to at least one dog, and these pet parents spent $147 billion in 2023! Businesses in this industry have a very defined audience, but it’s not one you’d target solely based on demographics or location. Instead, this subset of consumers is best reachable via geofencing because they spend their time in dog-related places, including parks, vets and pet-friendly spaces in a city.

Adding location-based retargeting to the campaign means dog boarding facilities and retailers can continue to serve ads to these people. They don’t have to see an ad while in a fence, Gareis relayed, as they may be too focused on their furry friends to be scrolling on their phone.

With relevant creative and messaging, dog-related advertisers could gain brand awareness and online or physical traffic.

Youth Camps, Programs and Sports-Related Retailers

Parents spend a lot of time at local fields for baseball, football or soccer games and practices. Other spots they would frequent would be YMCAs or community centers. They may be watching the game much more than their phones, but if their location is on, they’ll register as inside the fence.

Later, these folks could see ads for youth camps, programs or sports-related retailers. Seasonality is in the mix for this type of campaign, which can make the ads served even more timely.

For example, parents at the baseball field in the summer could see ads about fall programs and sports. Most kids play more than one, so it’s a reasonable assumption that parents would want to know about other sports-related activities.

Local Restaurants and Competitive Geofences

Restaurants have great success geofencing their competitors, but the diner may not see the original ad. They could already be inside and seated before they see one, too, so they aren’t going to take that offer in the present. However, eateries can win future business. People may see an ad with a coupon code that’s appealing and visit that establishment the next time they eat out.

Recruiting for Trades

Location-based retargeting also makes sense in recruitment advertising. It’s a smart tactic for those seeking trade or manufacturing workers. Many businesses are struggling to hire and have begun to fence other plants and factories, Gareis relayed.

She noted that these folks may not be looking for jobs on LinkedIn or job boards. They may also be passive candidates who don’t have plans to leave their current roles. The right offer could change their minds, so these employers have a chance to capture people’s attention with things like publishing pay rates and offering sign-on bonuses.

What Makes a Location-Based Retargeting Ad a High Performer?

Next, Gareis shared some best practices when creating retargeting ads. The first tip goes back to the original configuration of the geofence. She noted that you need to be intentional with the fence and be confident it will capture the right audience. This retargeting is based solely on where people have been and has nothing to do with demographics or interests. It needs to be precise, with the correct radius and minimal overlap.

In the dog boarding example, the fence could be precise to the real fences of the dog park.

Second, she recommended a strong call to action. There must be a compelling reason for someone to click an ad, greater than its relevance to them. Coupons make sense for the retail scenarios discussed. “Apply Now” would be an appropriate button for hiring ads.

Third on the list is following all other general creative best practices. The ad should use high-quality imagery or video, the design should be in sync with the brand, and the font should be legible. Remember that these serve on mobile devices, so that should always be a consideration.