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Why Pre-Defined Geofences Outperform POI Radius in Geo Advertising

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Maponics CEO Darrin Clement recently spoke with AdExchanger about the importance of using pre-defined geofences, instead of point-of-interest radius, in geo-targeted ads. Darrin explained, "One thing that we have seen over the past couple years and continue to see, is that too many of these ad players are thinking of this [geo-targeting] as a POI [point-of-interest] radius." The problem with this approach is that with POI radius, the only trigger for deploying an ad is distance from the shopping center, stadium or other point of interest. But, as Darrin said, "Distance is not the only criteria. It’s the psychological boundary, which is often a neighborhood, that determines how users will respond."

 

Geo-targeting for mobile advertising is more effective when using pre-defined geofences, which surround points of interest based on neighborhoods or other psychologically relevant criteria. Why? It's the difference between getting a coupon for a coffee shop that's nearby but in a sketchy neighborhood versus getting one for a shop that's farther away but in the neighborhood you already frequent.

 

With pre-defined geofences, you can engage with people entering shopping areas such as mall or outlet parking lots or at venues such as stadiums, arenas, amusement parks and more. The possibilities are endless, and the response rate can increase tenfold, as seen with Urban Airship's use of custom geofences. More and more businesses are discovering the value of this sort of real-time, relevant targeting. Be sure to check out our popular SlideShare presentation, How Geofences Enable Better Mobile Ad Targeting, for more on geofencing.