Geotargeting and Geofencing Compared
The line between geotargeting and geofencing can get blurred pretty quickly in the marketing world, and depending on who you talk to the two are used interchangeably.
For instance Google ads offers geotargeting but not geofencing. When looking closely at google’s site you’ll notice that never once does it mention geofencing. Instead it uses words like “Google Ads location targeting”, yet if you search “Google ads Geofencing” you will get article after article on all of Google ad’s geofencing capabilities. Yikes!
So why do these terms get used interchangeably and what is the difference between google ads location targeting and geofencing platforms.
BREAKING DOWN THE TERMS
Let’s start by outlining what geotargeting and geofencing are.
Geotargeting uses IP addresses, GPS coordinates, user interest, and proximity marketing to target consumers in an advertiser’s desired geographic location.
Geofencing Uses GPS or RFID signals to set a customizable virtual boundary that will trigger ads when a person enters the location.
Okay we know, we know. These still sound very similar, so we are going to break down Google ads geotargeting capabilities and other platforms’ geofencing capabilities to hopefully create a bigger more defined picture of the differences between geotargeting and geofencing.
In general, I like to think of Google ads location targeting, as being a wider net then geofencing. It’s important to keep in mind that a wider net has both its pros and cons, so let’s look closer.
GOOGLE ADS’ TARGETING METHODS
Google ads has two forms of targeting, location and radius. First, location based, allows you to target the following areas:
- Countries
- Cities
- Regions
- Postal codes
For one campaign, multiple locations can be selected at a time, i.e. a campaign can target California, Florida, and North Carolina at the same time. You could even target 1,000 zip codes if you wanted to.
That being said, no one wants to spend the better part of an afternoon entering 1,000 zip codes manually! Luckily the google ads platform allows you to upload a list in bulk for an easier experience or enter locations manually if you just have a few.
On the flip side, Google Ads also allows you to exclude locations in the same fashion that you would target. This would be helpful if you are promoting a product in the United States but aren’t able to ship to Alaska or Hawaii. Instead of entering in the 48 states that you can ship to, you would instead target the United States and exclude Alaska and Hawaii.
The second kind of targeting is radius targeting. This can be found under advanced search options in the locations setting. In Google ads radius targeting allows an advertiser to enter their business profile location or an address. From there a radius size of your choosing will appear around that location. The radius around that location can be anywhere between 1 and 500 miles.
A one mile radius is the closest you can get to your location. In Google ads if you want to target Grand Central Station the most precise targeting would be Grand Central Station plus a 1 mile radius. Some advertisers may want to hone in on the station itself and not the surrounding area. That would be a task for Geofencing, but more on that later.
GOOGLE LOCATION VS INTEREST TARGETING
Something else to keep an eye on when setting up location targeting for Google ads is their question on presence or interest. You will have the option to target not only people who are physically in your designated location but also people who show interest in your designated area.
For example, let’s say you want to run ads for your tour bus company in Chicago. You don’t want to only target those who live in the city because that might not be your sole target demographic. Instead you want to reach tourists who are interested in and planning a trip to Chicago but don’t live there. This is a scenario when using presence and interest is your best option.
HOW DOES GOOGLE DECIDE WHO TO SHOW ADS TO
Ideally when you set a target location, you will be sending ads to that location specifically, but with Google that isn’t always the case. Google uses GPS signals, IP Addresses and interests to target people and therefore will sometimes hit people outside of your set location.
For example, people use IP addresses that don’t match their actual location. We are seeing a rise in VPN usage, whether it be for watching Netflix shows in a different country or for protecting data online. Nevertheless, Google will still target IP addresses that are set for your location even if that person is not physically there.
GEOFENCING PLATFORMS
Before we dive into Geofencing, let’s clear something up. In the first section we talked about Google ads’ geotargeting because people will likely interact with google ads at some point in their Marketing career. When it comes to Geofencing there are many platforms with geofencing capabilities. Today we are going to go over some of the main components frequently seen on geofencing platforms. It’s important to note that not all platforms are created equal and some have more capabilities than others.
So, Let’s jump into geofencing and what makes it different from Google ads location targeting.
GEOFENCING TARGETING METHODS
Unlike google ads, Geofencing allows you to get super specific with where you are targeting. How specific, you may ask. Well not only can you target a single building but you can separate that building from its parking lot. You can even select the front part of the building if you know that the back of the building is all storage and your target group of people isn’t there.
This is done by setting up “fences”. You provide the geofencing platform with locations you want to target, and they will set up a virtual fence around the area. Then, using GPS signals when someone enters that location they will be eligible for your ads. Frequently these locations can be edited to fit exactly what you need. You can also target more than one place at a time.