How Much Does 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 is the most common buying model for geofencing, and typically includes brand awareness campaigns or campaigns that focus on reaching a specific audience. Industry pricing can range anywhere between $3.50-$15 CPM for mobile and desktop campaigns, and $20-$50 CPM for Connected TV (CTV) campaigns. At GroundTruth, our minimum CPM price for both mobile and desktop targeting is $3.50. We recommend $10 – $15 for event/short flight campaigns. For optimal pacing on video campaigns on mobile and desktop, we recommend setting a $7-$12 CPM.
For CTV and OTT campaigns, our base CPM price is $25 across all screens. This single-price solution includes our entire targeting suite, access to premium publisher content, and creative overlays such as GT QR Codes.
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 can be.
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.