Mobile advertising spend is increasing as more and more time spent shifts to mobile. One under used option for mobile ads involves geofencing specific locations for a highly targeted geographic based focus.  

Geofencing is especially effective for car dealerships because of the ability to target consumers directly through their mobile devices, at times when they are more likely to be thinking about buying a car. Geofencing is an affordable targeted display advertising option for both franchise dealerships and used car dealerships. 


Here are three ways to leverage geofencing for automotive and make it work for your dealership. 

1. Target Auto Shoppers at Your Car Dealership 

Geofencing gives you the ability to target shoppers when they’re on your lot or in your showroom. So, they’ve already made the first step in the buying process by either coming in to look at your inventory, or they may be further down the buying cycle and ready to make a purchase. Or maybe they’re taking advantage of your vehicle service or parts offerings, but they’ve been thinking about trading in their used car. 

Did you know that half of all auto shoppers use their smartphones while at the dealership

Don’t miss out on this perfect auto shopping moment. You can target prospects physically on location at your dealership with a mobile display ad that advertises special incentives or financing options, and even service offers. By targeting an audience already at or near your physical location with a special offer you can help move them closer to choosing your dealership for their next car purchase or to be their next automotive service provider. 

2. Target Consumers at Your Competitor 

Geofencing gives you a way to directly target your competitor’s shoppers and browsers. During the buying process, 53% of vehicle shoppers use their mobile devices, and you don’t want to miss key opportunities. 

You can set up a geofence around a competitor dealerships or auto repair shops, so when customers visit your competition, they see an ad for your dealership. If they’re already looking for an auto service provider or considering buying a car, an ad with a promotion or special offer they can use may inspire them to action, encouraging them to choose you over the competition.  

You can even set a campaign to show ads to the target audience group for a determined amount of time after they initially appear in the target geography. Geofencing helps you stay top of mind when auto shoppers are ready to buy. 

3. Target Nearby Businesses that Complement Yours 

In addition to targeting your own dealership address or nearby area, and competitive dealerships, you can target businesses where cars are the focus. While not competitors, consider targeting nearby car washes or gas stations nearby, so you catch consumers when they are actively thinking about their car. Or target an independent auto repair shop with a trade-in offer advertisement. If one of their customers gets bad news on a big repair ticket, they just might think about trading up for a newer, more reliable vehicle. 

Why is it so important to reach consumers at that moment of first consideration? The average car buyer used to visit 5 dealerships. According to Google with online research, that number has dropped to 2. You need to be ready to get into prospective customer’s consideration set, at the right time, which may be 1 – 3 months before they are actively shopping. 

Increasing awareness for your dealership and driving consumers to your showroom or service center are two great benefits for geofencing. With addressable geofencing, you have a bunch of options to efficiently reach a targeted audience with custom messages at an affordable price point. You can even establish conversion zones, so you can measure the impact of mobile ads on driving traffic back to your showroom. Don’t miss out on this great way to stand out from the competition on mobile. 


Want to learn more about how geofencing works? Contact us, and we can fill you in


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