Ask the Expert: When Should You Recommend Video Geofencing?

What Is Video Geofencing?

This ad tactic combines geofencing and video. Geofencing is a location-based advertising tactic that targets people by geography with “fences” around a specific area. Users must have location services enabled on their mobile devices to receive these ads. When a device enters this virtual geographic boundary, a user becomes part of an audience that could see an ad. For an idea of reachable audience size, consider that 80% of consumers have location sharing active on their phones some of the time, and 16% do all of the time.

Geofencing ads can be static display or video. Videos in geofencing are typically short, with a relevant CTA at the end to encourage a specific action.

When Should You Recommend Video Geofencing?

Peck shared several scenarios where this ad type would be a good choice for advertisers.

Businesses with Potential Customers Nearby

There are many options for geofencing. One is fencing an area near the business where customers are likely to be. These ads can then draw foot traffic to their location.

She offered an illustrative example.

A local ice cream shop in a downtown area seeks to attract more customers who live or work nearby. The business could fence all the nearby commercial buildings and a local park.

This fence would hit two types of consumers. First, there’s the person in the break room at work heating up their meal. Second, there are those in the park, maybe walking their dogs or enjoying a sunny day.

Either of these groups of people may be playing a game in an app or browsing their favorite news publication. While playing or scrolling, they may see this video ad that plays up the appeal of a scoop or two. Pairing the video with a code for 10% off could get those consumers to grab a sweet treat!

Companies with Products or Services Showcased Best on Video

Another strong use case for using video geofencing, according to Peck, is for any business with a product or service that would showcase best in this medium. Consider the advantages of a product or service with movement versus static imagery.

Peck offered some examples.

Hair salons and spas would fit here. Videos could feature customers’ transformations as they show off a new cut, color, manicure or refreshed skin. These businesses focus on making people feel relaxed and beautiful, and video captures that well.

Others include:

• Products you can demonstrate on camera to show consumers how they work (e.g., sporting goods, landscaping equipment)
• Any unique process that would be fascinating and draw interest, such as showing glass blowing as a promo for a shop nearby or winemaking from a winery
• Emotion-focused videos that showcase the results of donations and volunteering for a nonprofit
• Highlighting features of a product, such as vehicle spotlights from dealerships

Pro tip: Peck said videos for restaurants, grocery or food service perform better than static images for those business types. Without professional lighting and equipment, still pictures of food can look less than appealing. Crisp vegetables and sizzling steaks make the mouth water!

What Businesses Benefit the Most from Video Geofencing?

In the use cases above, Peck already identified many industries that would benefit from video geofencing. Others that are a good fit for this tactic include home services and political.

Home Services

Renovations and remodels are a high investment for homeowners and require a lot of research. These folks are often frequent shoppers at national and local hardwood stores. Fencing these areas could help roofing companies, contractors, architects, interior designers and landscapers connect with relevant audiences.

With video, there’s the opportunity to show before and after. It can also capture real crews on real jobs installing a new roof or tiling floors.

Political

Political advertising is a driver for local ad revenue in 2024. Since these ads often focus on the candidate and their policies, video brings them to life. Fencing specific areas where voters live or work could be a good option. You can also consider fencing places where residents gather, like community centers and events (e.g., county fairs and campaign rallies).

Videos of the candidates themselves are most likely, but you could also recommend highlights from people in the area supporting that person. This type of testimonial could be engaging and powerful.

What Are Some Best Practices for Creating Videos for Geofencing?

Peck shared some advice for local media sellers and their advertisers, including:

• Always use high-resolution, professional imagery to avoid any blurry or grainy appearances.
• Only use slide shows that show a clear picture of before and after.
• Avoid using stock video assets without any further customization, as they’ll be too generic.

Pro tip: Get more insights on creative best practices from our expert!

What Are Some Good CTAs to Use with Video Geofencing?

At the end of every video, a CTA can appear. Users are viewing these on mobile devices, so the link can take people to customized landing pages to grab an offer or shop.

Peck recommended strong, concise CTAs that are relevant to what the person just viewed. The business type and advertiser goal also inform these.

Some options include:

• Call Today
• Visit Us for an Exclusive Offer
• See What’s New
• Sign Up for Our Loyalty Program or Newsletter
• Browse Our Selection
• Request a Quote
• Donate Now

What Are the Best Practices for Campaign Length and Investment?

Another area to cover is how long a video geofencing campaign should run and what kind of budget should be behind it. Peck noted that $1,000 per month would be the minimum to run a high-performing campaign. It is a more premium tactic but one that can drive substantial results. In fact, 89% of marketers said sales increased as a result of geofencing.

Regarding campaign length, longer is always better. Peck advised that the ads should run for at least a month because of changing consumer habits. Ideally, you’ll see a more accurate performance view with a three-month campaign. The first month is for laying the groundwork and seeing what responses you get. By the third month, you’ll be in a state of optimization and will see improvements.

When the campaign launches also impacts budget and length. Seasonality, events or consumer shifts could all affect performance, so that’s another factor to consider.

Peck also relayed that with a longer campaign, you can A/B test. A business could run a set of video ads with different imagery, products, text and CTAs to see what’s resonating with consumers. As the campaign gathers data, you can then optimize toward those that have the best responses.