The topic of geo fencing is coming up in more and more conversations when discussing automotive digital advertising. The appeal seems to be the implied ability to pull someone from your competitor’s showroom and compel them to visit your dealership. Sounds good, right? Maybe too good in my opinion.

Don’t get me wrong. I think this is cool technology but companies are selling to the competitive nature and ego of the dealer when they talk about fencing your competitions showroom and taking them out of their showroom and into yours. I don’t buy it. I don’t disagree with the technology. I think that the nature of our business those customers are going to consider you anyway If your current digital strategy is complete.

I it is a lot of money for what dealerships are getting in return for their spend. If it was $500 a month and no term, I say go for it and see how it works for your dealership. I have been seeing dealers spend around $2000 and above and lock in to a termed agreement. I sat in on one presentation where they wanted $10 per 1000 impressions. Impressions are just eyeballs, clicks show interest.

I see dealerships jumping on this spending big money in the hopes that it’s some sort of magic that will teleport buyers directly from their competitor’s showroom into a car deal on their lot. (Much like the inflatable gorilla) The part that troubles me the most is seeing them do this while the rest of their digital presence is sorely neglected. You are smart to keep your eye on trends and try new things. You have to to stay competitive but if your basic digital advertising bases aren’t covered you open yourself up to be dominated.