Why Geofencing Works for the Automotive Industry
Buying a car is no longer a quick or simple decision. The modern automotive purchase journey involves extensive research, side-by-side comparisons, and careful evaluation. On average, consumers interact with 24 touchpoints before making a decision, and 19 of those are digital.
This is where geofencing proves its value. It connects online behavior with real-world activity, allowing you to influence potential buyers at the most critical moments of their decision-making process.
Here’s why geofencing is so effective for auto dealerships:
Geofencing allows you to target individuals who are physically present at locations that signal high purchase intent. By creating a virtual boundary known as a geofence around a competitor's lot, you can capture the mobile devices of potential buyers who are actively shopping. This approach is one of the most efficient ways to reach in-market car buyers, meaning people who are looking to purchase a vehicle now rather than in the distant future.
Traditional advertising, whether it's a billboard, radio spot, or a broad digital campaign, reaches a lot of people who are not in the market for a car. Geofencing dramatically reduces this ad waste by ensuring your message is delivered only to those who have been to a relevant, high-value location. This makes every dollar of your marketing budget work harder.
One of the biggest challenges in automotive marketing is proving the ROI of your advertising spend. Geofencing, especially when combined with a conversion zone, offers a clear and measurable path to success. You can set a geofence around your own dealership and track how many people who were served an ad from a competitor's location later visited your lot. This provides irrefutable proof of your campaign's effectiveness.
The customer journey isn't limited to a single device. Geofencing campaigns can deliver display, video, and OTT/CTV ads to a consumer's mobile phone, tablet, smart TV, and home computer. This multi-device approach ensures your dealership stays top-of-mind, providing consistent brand reinforcement throughout their research phase.
With the rise of streaming services, more and more consumers are "cutting the cord" and are no longer reachable through traditional broadcast television. By leveraging OTT/CTV advertising with geofencing, you can reach this valuable audience with targeted, full-screen video ads on their living room TV, all while they are relaxing at home.
Dynamically showing live inventory is a must for automotive dealer's display ad campaign. At Qujam, you can leverage DCO banner ad creative with your geofence advertising campaign. This is a special setup, so just contact our team to learn more about pricing and capabilities.
Example Geofence Ad Strategies for the Automotive Industry
Geofencing is not a one-size-fits-all solution. Its power lies in its versatility and ability to be tailored to specific marketing objectives. Here are some of the most effective strategies that auto dealerships can implement using Qujam:
Strategy #1: Geo-Conquesting Your Competition
This is perhaps the most well-known and effective geofencing strategy for auto dealerships. A car buyer visits an average of 2.7 dealerships before making a purchase. This means a significant portion of your target audience is already on a competitor's lot.
How it works with Qujam:Â Use Qujam's easy-to-use map interface to draw a polygonal geofence around your direct competitors' dealerships. You can fence as many competitors as you want, and since we use polygonal fences instead of less accurate circular ones, you can precisely target just the lot and showroom, excluding surrounding areas.
Ad Content:Â When a potential buyer enters one of these geofenced competitor lots, you can serve them a series of display, video, or OTT/CTV ads. Your ad messaging should be a compelling counter-offer.
-"Considering a new sedan? We have the best financing deals on a [Your Brand] [Model] just down the street!"
-"Don't settle for less! Our customer service ratings are [Number] times higher than [Competitor's Name]."
-"Get a free trade-in appraisal, even if you don't buy from us. Visit [Your Dealership's Name] today!"
The Outcome:Â You're literally getting in front of customers at the peak of their purchase journey. This strategy disrupts the competition's sales process and pulls high-intent buyers directly to your dealership.
Strategy #4: Service Department Geofencing
Service departments are a crucial profit center for auto dealerships. Geofencing can be used to capture new service business and retain existing customers.
How it works with Qujam: Create geofences around local independent repair shops, tire stores, and even the service departments of other dealerships. (In fact you, can even geofence your own location to encourage buyer satisfaction and returns.)
Ad Content: Your ads should focus on convenience, trust, and special offers.
-"Get certified service from the pros! We'll match any local repair shop's price."
-"Why go to a third-party shop? Get an oil change and tire rotation from factory-trained technicians at [Your Dealership's Name]."
-"Need new tires? We have a buy-three-get-one-free offer this month. Don't pay more for less!"
The Outcome: This strategy directly addresses a common customer need and positions your dealership as the trusted, expert choice for all their service needs. It also is a way to directly show case your value propositions and entice future sales.
Goals and Problems Geofence Advertising Solves for the Automotive Industry
The automotive industry faces a number of persistent challenges. Geofence advertising provides a direct and effective solution to many of them.
Problem: Long & Complex Customer Journey:Â The path to purchase is no longer linear. Customers spend months researching online and visiting multiple dealerships before making a decision. Dealers struggle to stay top of mind throughout this process.
Solution: Omnidirectional & Retargeting Capabilities: Our platform captures devices that enter your geofence and continues to serve ads to them for up to 30 days. This keeps your brand consistently in front of the consumer, whether they are on their phone, tablet, or watching their favorite show on a connected TV.
Create a Qujam Geofencing Account
Self-served geofence advertising for auto!
Qujam makes it incredibly simple to get started with geofence advertising. You don't need to be a marketing genius or have a massive budget. Our intuitive DIY platform puts the power of geofencing directly in your hands.
- Sign Up for a Free Account: Create your account in minutes.
- Create Your Profile: Enter your profile information, set up your organizations, payment information, and saved conversion zones.
- Create a New Campaign: Click on the New Campaign button in the Dashboard and follow the easy to use set up steps. If you get stuck at any point, click on the "i" icon in the blue circle for tips, info, and videos on our How To Use Qujam pages.
- Launch Your Campaign: If everything is completed correctly, launch your campaign.
- Track Your Success: Our real-time dashboard gives you a clear view of your campaign's performance, including impressions, clicks, and conversion zone foot traffic.
- If You Need Help, We're Here For You: You can schedule demo to walk through the campaign set up, reach out to use for creative development, or contact us with any questions. Our website is also full of FAQs, how to use Qujam info, and other resources.
The automotive industry continues to evolve. The buyers are different, the competition is more intense, and the tools you use must evolve to keep up. With Qujam, you can move beyond old, inefficient advertising methods and start using the most precise, effective, and measurable advertising technology available. Stop guessing and start winning. Get started today and drive your dealership's success with Qujam geofence advertising.