How Much Does Geofencing Cost?

Geofencing Cost?

There are typically two buying models for Geofencing campaigns – CPM (Cost per Mille or Cost per 1,000 impressions) and CPV (Cost per Visit).

CPM Model

CPM is the most common buying model for geofencing, and typically accompanies brand awareness campaigns or campaigns that want to reach a particular audience. Pricing typically ranges between $3.50-$15 CPM for mobile and desktop campaigns, and between $20-$50 CPM for Connected TV campaigns. The pricing range of CPMs varies depending on a number of factors such as the volume of impressions purchased or the types of targeting tactics used. The more localized or narrow your targeting is, the higher the CPM will be.

CPV Model

CPV is a guaranteed performance buying model in which marketers only pay for ads that result in a store visit. This geofencing buying model removes the risk or guesswork of traditional media buying and shifts accountability from buyer to partner, bringing improved transparency and simplicity to the advertising industry. CPV is ideal if your KPIs are focused on real-world outcomes, such as generating more foot traffic and increasing the frequency of in-store visits from past customers. CPV pricing will vary on a number of factors such as the number of drive-to locations for the campaign, the number of impressions available based on the targeting tactics used for the campaign, and additional data layers used.

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