INTRODUCTION
Geofencing is a location-based advertising technology that creates a virtual boundary around physical areas and prompts an action when a device enters, leaves or travels through the specified area. Many platforms on the market offer geofencing services. Typically, they operate on a pay-per-click or cost-per-mille pricing model, much like Google or Meta ads.
Geofencing is a particularly functional form of advertising for restaurants for a few reasons. First, restaurants have an extremely local customer base. Second, dining decisions can be highly situational, such as leaving work, staying at a hotel, attending an event, shopping or visiting an entertainment venue. Geofencing lets restaurants build campaigns around those situations.
Location can also signal potential intent or interest. Someone visiting a competing restaurant, entertainment district or nearby attraction may be part of a particularly relevant audience for a restaurant.
Geofencing can help reduce wasted ad spend, too. Rather than advertising across an entire metro area, restaurants can concentrate spending on geographic areas where their desired customers are likely to be.
WHERE RESTAURANTS SHOULD USE GEOFENCING
Competitor restaurants are an effective location for a geofencing campaign because they reach an already engaged, relevant audience.
Hotels and tourist destinations are also common. Rather than targeting tourists across an entire city, restaurants can focus ads on people staying at hotels or visiting destinations (e.g., a museum) nearby.
Entertainment venues and events work for similar reasons, plus they offer a higher concentration of large groups with a greater likelihood of going out when they are already out.
Shopping districts, retail centers, office parks and college campuses tend to have audiences seeking convenience or acting on spontaneity.
HOW TO CREATE A SUCCESSFUL RESTAURANT GEOFENCING CAMPAIGN
Restaurants can make geofencing campaigns more effective by tailoring their ads to the locations and audiences that they’re targeting. Start by considering who visits each location and what may encourage them to stop by. For example, ads targeting hotels could highlight nearby dining options, while those targeting office buildings could promote a happy hour or lunch special.
By creating different ads for each location and delivering them at relevant times, restaurants can reach potential customers with messaging that aligns with their needs and gives them a reason to visit. Timing is also important. Restaurants can schedule ads around lunch, dinner or happy hour to reach potential customers when they’re more likely to be making dining decisions.
To measure success, restaurants should track results such as website visits, online orders, reservations and attributable foot traffic. These insights can help identify which locations, messages and promotions are most effective.