How much does competitor geofencing advertising cost?
In the grand scheme of your marketing campaigns, competitor geofencing falls somewhere in the middle price wise. Typically, your geofencing campaign won’t cost as much as a brand-new website tagged at $50k, but it won’t be as cheap as an email marketing campaign, either.
That being said, competitor geofencing is extremely beneficial, and is well worth the price you’ll pay for ads.
On this page, we’ll talk about the typical cost for a geofencing campaign.
Factors that impact the price of competitor geofencing
There are a few different things you have to consider when trying to determine a fair cost for a geofencing campaign. You’ll need to consider things like how much it will cost to set up your campaign, what kind of budget you’ll have for ad spend, how many zones you want to create, and more.
Let’s talk more about each area of geofencing that you’ll have to account for in terms of expenses. Since our main concern is the cost of geofencing ads, we’ll talk about that first.
DISCLAIMER: Since competitor geofencing is somewhat new to the marketing industry, there isn’t an extensive amount of information on pricing. Understand that the market is always changing, every agency is different, and that these prices are estimates.
Monthly budget for ads
As Xander mentioned in the video above, when you launch a geofencing campaign, the goal is to serve ads for your business’ storefront when target customers are nearby. When they’re within your “geofence,” they become eligible to receive ads from your business when browsing the Internet.
However, you’ll have to consider what kind of budget you’re willing to set aside for ad spend. These are what will make or break a customer visiting your business, since the wrong ad won’t get the job done.
In addition to targeting your audience through remarketing, you can also target keywords in your remarketing campaign. If you partner with a competitor geofencing agency, they can help you determine the best option for your strategy.
You want to be able to target highly beneficial keywords that you know will bring your target customers through your door. These keywords could be extremely general keywords, or they could be super detailed long-tail keywords.
When you choose to target general keywords, you’ll pay more for each ad — mostly due to the fact that every business like yours is trying to target it, so there is more competition to rank for that keyword. This drives the price upward.
When you choose to target detailed long-tail keywords, you’ll pay less, since less companies are targeting that keyword.
One thing to keep in mind though, is that when users search for your products on their smart phones as they walk or drive down the street into your geofence, they may not type long, detailed keywords. To save time, they may choose to use a slightly more general keyword.
For example, you decide to go out with your friends for a sushi dinner, but your favorite restaurant is closed. You’re now left to find another sushi restaurant nearby. Chances are, since you’re hungry and it’s already past dinner time, you’ll type in a more general keyword.
You may just search “sushi restaurant,” instead of “spicy salmon roll near me.”
Long-tail keywords fare extremely well for ranking organically, but when it comes to geofencing and ads, it’s important to think general, too.
As far as ad spend, you’ll likely pay anywhere from $1,000 per month to upwards of $20,000 per month for your targeted ads.
Budget for extremely granular targeting
When you implement a competitor geofencing campaign, you’ll have to consider how granular you want to target your potential customers.
For example, you could simply target an area around your competitors’ locations, but you might be interested in taking it a step further and targeting specific events, and even conferences.
This kind of ultra-specific targeting has potential to increase the cost of your campaign by around $1,000. Where does the cost come from? It’s the number of locations and zones that you want to target that increases the price — and it’s important to remember that it’s not always going to be $1,000 dollar increase. Every geofencing advertising agency is different!
Is it worth the cost if you want to target these locations? Absolutely.
Budget for competitor locations and conversion zones
You’ll also have to consider how much room you have in your budget to dedicate to the number of competitor locations you want to target.
Since most of the time, the number of competitor locations and conversion zones are included in a package, there’s no surefire way to tell how much each costs. But obviously, the more you target, the higher the package cost.
Monthly management budget
After the agency sets up your geofencing, there is still more to be done. This strategy isn’t much of a set-it-and-forget-it kind of technique, much rather you have to nurture it to succeed.
You’ll have to monitor your campaign’s performance on a routine basis. For example, you may assess the conversion rate, as well as click-through rate (CTR) of your campaign. You may also analyze the size of your remarketing audience, or the people who entered one of your geofences.
That being said, there is typically a fee for monthly management of your campaign if you opt out of doing it yourself.
Typically, a progressive monthly management fee will cost anywhere from $550 to $1500. However, every agency is different!