Traditional marketing, like direct mail can be significantly enhanced through advanced technology. One such tactic is addressable geo-fencing, which allows advertisers to upload a physical list of addresses and serve digital display ads or videos to those locations. Let’s look at how addressable geo-fencing works and how it can boost your direct mail campaigns.
Addressable geo-fencing is a powerful tool that combines physical location data with digital advertising capabilities. By creating virtual boundaries around specific houses, advertisers can target households with precision. This allows for the delivery of digital ads, including display ads and video content, to users at defined addresses.
How Does Addressable Geo-Fencing Work?
The process begins by uploading a list of physical addresses into the geo-fencing platform. This list can include addresses from your direct mail campaign or other customer databases. For privacy regulations, no identifying information can be accepted, only addresses. The platform maps the uploaded addresses and creates geo-fences around each location. These geo-fences are typically small, encompassing only the target address. Mobile devices within the geo-fenced areas are identified based on location data. This is done through GPS, Wi-Fi, and other location-tracking. Once devices are identified, digital display ads or video are served to those devices. These ads can appear on websites, apps, and social media platforms that the users visit. The performance of the ads is tracked, allowing for continuous optimization.
Addressable geo-fencing allows for precise targeting, ensuring that your digital ads reach the exact audience you intend to. This reduces wasted ad spend and increases the likelihood of conversion. By combining direct mail with digital ads, you create a multi-channel strategy. This reinforces your message and increases the chances of reaching your audience through multiple touches. Digital ads can be tailored to complement the content of your direct mail pieces. Personalized messaging can lead to higher engagement rates.
Some sample uses:
- A local furniture store sending out direct mail flyers for a sale can use addressable geo-fencing to serve digital ads to the same households. This multi-channel approach reinforces the promotion and encourages potential customers to visit the store or website.
- An event promoter can use direct mail to invite guests and follow up with digital ads. This ensures that potential guests are reminded of the event through multiple touches.
- Service providers such as plumbers, electricians, pest control, and more can send direct mail brochures to specific neighborhoods and use addressable geo-fencing to deliver digital ads showcasing their services and reinforcing top of mind awareness.
- A real estate agent may surround an area where they have just sold a house or are having an open house, with digital ads in hopes of gaining more listings.
Research and case studies have shown that integrating addressable geo-fencing with direct mail campaigns can lead to significant improvements in engagement and conversion rates. According to a study by Simpli.fi, campaigns that integrated addressable geo-fencing saw an average increase of 27% in engagement compared to those that relied on direct mail alone. Another study by PebblePost found that combining digital ads with direct mail resulted in a 68% higher conversion rate than using direct mail alone. Advertisers using addressable geo-fencing reported a 15% increase in return on investment compared to traditional direct mail campaigns, as noted by the Data & Marketing Association (DMA).
Addressable geo-fencing is another tactic that can take your direct mail campaigns to the next level. By utilizing digital display ads or video content with your physical address list, you create a comprehensive and sticky marketing mix. This approach enhances targeting and also maximizes your budget. It also provides valuable insights into campaign performance. Embrace addressable geo-fencing to boost your direct mail efforts and stay ahead of the competition. Not sure where to start, NNEdigital has you covered. Reach out today!