Pizza Today - March 2021 - 32

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with online marketing. If you're using
Google Ads, you can navigate to your
campaign overview. Once you see the
column with campaign options, you
can click " More " to expand the options
listed. Then click on " Locations " and add
your included areas and excluded areas.
For Facebook, you can head to Facebook
Ad Manager; once you've created your
ads, go to Ad Set. Then head to the
Audience section, where you can narrow
or expand your audience based on a
radius surrounding an address or a
defined location area.

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Geofencing Limitations
" Like anything in technology, geofencing isn't foolproof, " says Pieter Vanlperen,
a veteran software architect and security
expert, and managing partner at PWV
Consultants. " There will be a percentage
of ads that get outside the fence. " You
also may find that you end up marketing to your pizzeria's already established
client base. This can happen if you're
located in a small town, and everyone
there already knows of your place.
Another pitfall can occur if your marketing efforts collide with your customer
base's preferences. For instance, some
clientele may consider it an invasion of
privacy to receive ads when they are in a
certain location. If your target customers tend to not be tech-savvy, delivering
notifications on a mobile device may not
lead to as high of a conversion rate as
you'd hoped for.
Cost Considerations
" Usually the cost of a geofencing
marketing campaign varies from $5 to
$15 CPM (cost per thousand impressions), " says Akshay Deogiri, SEO
outreach specialist at Beaconstac, which
provides proximity marketing solutions
including geofencing. Your exact spend
will depend on several factors, including
the size of the geofence. " The larger the
geofence, the lower the CPM is because
the volume is higher, " Deogiri says.
One cost perk of geofencing is that
you can avoid spending money to reach
customers that are outside of your ideal
range. For instance, say you tell Google,
Facebook or another ad platform that

you will pay $0.25 per click for customers in Atlanta who want to buy pizza.
" Once their algorithms find a group of
people who click your ads, they will
focus on serving your ads to just that
group of people, " Shivar says. " You might
end up spending almost all your ad
budget on cheap college students at the
outside bounds of your delivery range. "
With geofencing, you can establish a
radius or target a specific neighborhood
and only spend ad money on individuals
who are within your delivery reach.
In addition, you can use geofencing
to create more attractive and profitable
ads. " People click on ads that are more
relevant to them, " Shivar says. Google
and Facebook reward relevant ads with
lower costs per click. " Plus, they usually
have better conversions, " Shivar adds.
For example, perhaps a national restaurant chain pays $0.50 per click for an ad
throughout the Chicago metro area that
says, " Get Tuesday's Pizza Special! " If
you have just one location in downtown
Chicago and try to run an ad campaign
throughout the city that states " Check
Out Our Tuesday Pizza Special! " You
will have to pay more than $0.50 a click,
and your ad still might lag behind the
national chain's promotion. However,
if you run a campaign for just the two
miles around a university that is near
your restaurant and create a relevant ad
such as " University of Chicago Students
Get a Tuesday Pizza Special! " Google
and Facebook will be more likely to
show your ad first. You can expect to
pay much less than $0.50 per click, even
though the national chain is still bidding
$0.50 per click for those same customers.
Marketing today is becoming increasingly personal. Using geofencing can
help you find those ideal customers and
bring them back for another meal. " Geofencing is a viable and high-converting
option when pizzerias are relying on
online ads and digital marketing to drive
footfall, and when the ideal target customer is tech-savvy, " Deogiri says. n
RACHEL HARTMAN is a freelance
writer who covers small business,
finance and lifestyle topics.

©2021 Lactalis American Group, Inc., Buffalo, NY 14420.
Galbani is a ® of Egidio Galbani S.r.l.

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Pizza Today - March 2021

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