Geofencing is a tactic that can drive great results for your advertisers. Serving digital ads within a specific location can be a smart approach for targeting. You can often align an advertiser’s target market with areas they’d likely spend time. It’s also a great competitive play to geofence around the competition with attractive deals. There are many options in configuring this digital parameter, and one thing to keep in mind is that geofence size matters. If it’s too narrow or too large, it can negatively impact results.

Why Does Geofence Size Matter?

Like any way to segment in advertising, if the parameters are too narrow, your advertiser’s ad may get very few eyeballs. As a result, the outcome of the campaign will be lackluster and disappointing. Some of your clients may be under the impression that keeping the area small will help them get in front of the “right” audience, but being too small hampers visibility. The minimum radius of the geofence should be a quarter of a mile. Another rule of thumb to keep in mind is setting fences within a five-minute drive or 15-minute walk from the business.

While a too-small geofence is a common reason for little engagement, you also don’t want to inflate the fence radius. Larger fences can certainly increase the number of people who may see the ad, but ad waste can happen here when there isn’t a more cohesive strategy around places where ideal customers would be. Ad waste refers to campaigns that don’t meet their goals for a variety of reasons.

Here’s an example of finding the right balance. Your advertiser is a specialty retailer that offers high-end athletic gear for runners. Within your city, there are several parks that see many runners using the paths. The park itself covers a few acres, which would seem like a good fence area. However, this may still be limited, so you could recommend adding adjacent areas like parking lots and some retail areas where runners might stop in for a coffee or juice.

Getting the size right is only one part of setting up a geofence campaign. You’ll also want to use multiple fences.

Using Multiple Fences Boosts Visibility and Reaches More People

When recommending geofencing to advertisers, share the benefits of using multiple fences with them. There are look-alike or similar areas throughout your market where the customers your advertisers are seeking spend time.

If we go back to the example above, you’d want to suggest fencing multiple parks in the community that have high concentrations of runners. Not every park in your community would fit this profile, but you’ll likely have at least five that do. Another great thing about using multiple fences is that you can see which ones had the best results and use those insights for a future campaign.

Another consideration in fencing is to look beyond stereotypes.

Don’t Let Stereotypes Rule Geofencing

Your advertisers often have a lot of knowledge of their customers, but these assumptions may be inaccurate sometimes. It’s a good idea to discuss why they think their audience would only be in that one area. Talk through things like demographics and any data you have that can dispel misconceptions.

Let’s look at the example of advertising for cannabis using geofencing. Popular areas to geofence may be fast food restaurants or local college campuses. Those areas could have many consumers that fit the customer profile, but it’s a bit limited considering that cannabis users aren’t limited to young people with the munchies. Venturing beyond these “safe” fences could expose the brand to more people interested in the product.

Set Geofencing Up for Success with These Best Practices

The size of the geofence and how many you use can directly affect campaign performance. You want to avoid a fenced area that’s too small or too large. If it’s too small, it won’t reach enough people. If it’s too large, it may serve many people that aren’t the ideal audience. Always recommend multiple fences in different areas to reach more people.

Get more tips on geofencing by reading these posts:

What Is Polygon Targeting?
How to Use Geofencing to Create Competitive Advantages