IP Targeting & Geofencing Marketing: The Pillars of Success

For years, marketers have relied on cookie-based tracking technologies to deliver targeted ads to their ideal audiences. However, this method has its shortcomings. The limitations of cookies are compounded due to the recent policy changes rolled out by major tech companies like Google.

Fortunately, advertisers across every industry can use two pillars of marketing success to connect with their target audiences: geofencing marketing and IP targeting.

Below, we’ll outline what these technologies are and discuss the benefits they can offer your organization. We’ll also answer a few common questions such as “Can a static IP address be traced?” and “what is IP geofencing?”

What Is Target Advertising?

While you might be eager to dive into the topic of IP targeting and geofencing marketing, it is essential that you first understand the basic definition of “target advertising.” Also known as “tailored advertising,” target advertising is the practice of zeroing in on a specific audience.

To use this strategy, your organization must identify your ideal audience. Only then can you focus on creating advertising content that addresses their needs or wants. 

Target advertising leverages data collected through a variety of methods. Target advertising decisions may depend on criteria such as:

  • Age
  • Gender
  • Income
  • Education level
  • Race
  • Channel Preferences
  • Employment
  • Interests

Traditionally, marketers have chosen to gather much of this consumer information from third-party cookies. As we will discuss later, this outdated practice is well on its way to becoming extinct. 

IP targeting and geofencing marketing are poised to fill in the void left by cookie-based tracking methods. Not only will these pillars of advertising success be unaffected by upcoming changes in the tech industry, but they can also produce better results than cookie-based marketing.

What Is IP Targeting?

IP targeting is a specific tactic used for digital marketing. This strategy involves the delivery of ads directly to a specific individual’s IP address. With boodleAI, using as little as a name and phone number, we are able to collect information that will detect the individual’s IP address so that you may serve ads directly to any device within their household. 

Using this method, our team can target any individual’s specific household devices using your personalized creative in a process known as “enriched household advertising” (EHA).

IP Targeting vs. Cookie Targeting

Before we get into the benefits of IP targeting, it is essential to compare it directly to cookie targeting, providing insight into the advantages of geofencing advertising and IP targeting.

Cookie-based targeting relies on small bits of data. These cookies are left on a user’s browser each time they visit a website. Once a user has accumulated a fair number of cookies, advertisers have a pretty good idea of the types of content that person will be interested in. 

However, marketers cannot effectively target that consumer if the user deletes existing browsing history data or blocks cookies altogether.

Conversely, IP targeting relies on the user’s IP address. Static IP addresses, such as those affiliated with an individual’s WiFi router, will remain the same indefinitely. Even if that household begins blocking cookie tracking or browsing the web in “private” mode, marketers can target that consumer based solely on their IP address.

Does IP Targeting Work?

IP targeting is an incredibly effective method for targeting specific web users. It is especially beneficial for targeting businesses, as these entities have static IP addresses. It provides substantial benefits over cookie-based tracking in targeting households, as well.

IP targeting has quickly become the most viable way to market to individuals within a specific geographical area. Small businesses, massive corporations, nonprofits, and virtually every type of organization in between can benefit from an IP targeting strategy.

Benefits of IP Targeting

Matching a consumer’s IP address with their physical address is proving to be one of the most powerful marketing strategies. This tactic will allow you to advertise to high-quality leads for maximum impact. 

Obtaining detailed information about your contacts without cookies while leveraging IP targeting has three significant benefits, which include the following:

Ability to Perform Hyper-Local Targeting

What is hyper-local targeting? Traditionally, you would have to target users within an entire market, like a city or zip code within a major metropolitan area.

Thanks to the power of IP targeting, you can target very specific geographical areas. For instance, if you sell luxury goods or services that are cost-restrictive, you can deliver your ads to only high-income neighborhoods or households within certain regions. 

Hyperlocal targeting allows you to eliminate wasted ad-spend while also producing measurable results.

Enhance ROI

IP targeting is one of the best ways to enhance the ROI of your marketing efforts. IP targeting can drastically increase the effectiveness of standard geofencing campaigns. Your organization can generate more leads, increase conversion rates, and improve profitability.

Think back to your last marketing campaign. Depending on the size of your organization, dozens or even hundreds of individuals might have been inaccurately targeted with marketing materials, even though they had virtually no potential of becoming a customer. 

This is a significant pain point associated with cookie-based advertising that can be eliminated with IP targeting.

Improve Follow-Up Opportunities

IP marketing can enhance follow-up opportunities, too, especially when paired with direct marketing tactics. Your team could target a well-qualified household with high-quality digital content based on their IP address. You can then follow up by physically mailing or emailing additional advertising materials. If they already had a passing interest in your services, this approach could lure them deeper into the sales funnel while hitting them through a variety of channels.

What Is Geofencing Marketing?

Geofencing utilizes RFID or GPS technology to create a virtual “fence” around a geographical area. Geofencing has a wide variety of potential applications and can be an excellent tool for marketing purposes.

With geofencing, your advertising team can choose a neighborhood that contains consumers you want to target before launching an advertising campaign designed specifically for users within the area.

While geofencing advertising is a reliable way to identify a specific region that you want to target, it is only part of the equation. Pairing your geofencing data with the data you are able to expose through third party-data enrichment aids you and your team in identifying the ideal consumers within the geofenced region.

Pair this identification method with IP targeted advertising, and you are equipped with a much more accurate method of delivering curated content to households.

Advantages of Geofence Marketing

When used in conjunction with IP targeting, geofencing marketing offers several advantages to your organization. These include the ability to:

Reach Customers More Easily

Geofencing makes it much easier for you to reach the right audience. As soon as a user enters your digital barrier, you will have the opportunity to connect with them. Geofencing is especially important for businesses that operate within the service industries.

Enhance Sales with Local Audiences

Appealing to your local audience is vital. Incorporating geofencing into your strategies can help you to refine your marketing tactics. After identifying the persona of your primary audience, you will be able to geofence an area you are most interested in and identify the individuals in this area that best identify with your ideal persona. From there, you can target these individuals with a variety of digital ads through IP targeting – ensuring that high-quality leads in your area of interest know about your products and services, thereby increasing your chances of making sales.

Improve Engagement

Geofencing also helps you improve user engagement. Low-quality leads or individuals who do not need your products are not likely to interact with your content. 

By geofencing the specific neighborhood or town you are targeting, you can maximize the effectiveness of your advertising efforts.

IP targeting takes this a step further. When paired with geofencing marketing, you can deliver ad content to specific households. And over time, this approach will result in a stronger brand, better connections with community members, and improved profitability.

The Three Components of Geofencing Advertising

Geofencing advertising can be divided into three core components. Each phase of geofencing advertising builds on the previous step. These stages include:

Geofencing

Before launching an IP targeting campaign, your organization must first identify the focus region. During this first step, you will create a virtual perimeter around the desired area. This process is known as geofencing.

You can also create several geofences around specific areas within a metropolitan area targeting your core audience in multiple neighborhoods or highly-specific locations simultaneously. The geofence can always be adjusted later as your advertising needs evolve. 

For instance, if you own multiple coffee shops in a large city, you might want to create a geofence around your competitors’ locations to identify a new audience with an affinity for coffee.

GeoCapture

The next stage of geofencing marketing is GeoCapture, which involves actively capturing information on individuals within the designated area. 

While this information has value on its own, we enrich it with additional third-party data points to provide you with crucial customer or donor personas that highlight your best outreach opportunities.

GeoTargeting

The final component of geofencing advertising is GeoTargeting. Our team will use IP targeting to push ads to the individuals identified within your geofenced area. GeoTargeting leverages our innovative technology through the creation of highly accurate predictive models and improved ad placement.

What Is Cookie Targeting and Is It Dead?

Now that we have covered the tremendous advantages of geofence marketing when enhanced by IP targeting, let’s shift our attention to cookie-based advertising.

To recap, cookie-based targeting relies on small pieces of data or “cookies.” These bits of data allow marketers to target small groups of users based on their browsing history and behavior online. When a user accesses a company’s website, their browser is implanted with a cookie. Marketers can then deliver targeted ads to these users.

What’s the Problem with Cookie Targeting?

At face value, this sounds like a great marketing strategy. There is just one problem — browsers are starting to block these tracking cookies. Both Safari and Firefox have changed their default settings to block these cookies automatically. Users must actively enable cookie-based tracking for this method to work on these browsers.

But what about Google Chrome? Many marketers were waiting with bated breath to see if the search giant would follow suit. After all, Google dominates the desktop internet browser market share. According to Statista, roughly 67% of users rely on Chrome when surfing the web from a desktop computer.

Google recently announced that it would begin blocking third-party cookies. The company has since pushed the deadline back to the end of 2023, but the clock is ticking. Is cooking targeting dead? Not quite, but it is certainly on life support, and the last major holdout is preparing to pull the plug.

How Digital Advertising Can Work Without Cookies

While you may be tempted to wait until Google phases out cookies altogether, the more pragmatic solution is to transition to IP targeting-based marketing solutions, which will ensure that your organization is ahead of the curve.

IP targeting allows your marketing team to get more granular by avoiding cookie data entirely. You can focus on the data you currently have and expand that information with boodleAI. 

Our team can give you the capabilities to deliver hyper-targeted, personalized ads. This includes all of the popular mediums, including OTT, video, and banner advertisements. We partner with a variety of industries to help them deploy digital advertising that produces results.

To learn more about our enriched household advertising solutions, contact our team today. Our innovative EHA services are just what you need to overcome the impending cookie collapse! 

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About boodleAI

boodleAI is a Cloud-Based Provider of Enriched Analytics for sales, marketing, and fundraising teams. Enriched Analytics are insights and predictions made possible by matching an organization’s contact and transaction data with billions of third party data points. Sales, marketing, and fundraising teams use enriched analytics to better understand customers and donors, analyze sales and donations, gain insights into specific contacts, and predict what contacts will do. Guidon, boodleAI’s Cloud-Based Software, makes Enriched Analytics available to every organization and every budget through usage based pricing. Visit boodle.ai.