The 64% Cost Gap Nobody Talks About
When Mark 24/7 Laundromats ran GPS-verified geofencing campaigns in two different markets using the exact same targeting strategy, the results revealed something surprising: Florida delivered visits at $1.57 each while Alabama came in at $2.58—a 64% cost difference.
Same brand. Same targeting methodology. Same conversion zone technology. Dramatically different economics. Understanding why this happens is critical for laundromat operators evaluating markets.
The Two Markets: Side-by-Side
| Metric | Pensacola, FL | Alabama |
|---|---|---|
| GPS-Verified Visits | 3,192 | 1,935 |
| Cost Per Visit | $1.57 | $2.58 |
| Number of Locations | 6 | 7 |
| Visits Per Location (Avg) | 532 | 276 |
| Campaign Duration | 60 days | 60 days |
Both campaigns used identical audience segments: first-party customer data, competitor conquest targeting, and demographic overlays. Yet Pensacola generated 65% more visits despite having fewer locations.
Factor 1: Population Density
Pensacola sits in the Florida Panhandle with access to a combined statistical area of over 500,000 people. More importantly, Florida's mobile advertising ecosystem is highly developed:
- Higher smartphone penetration: Florida ranks in the top 10 states for mobile device usage
- More sophisticated ad exchanges: Greater advertiser competition creates more efficient auctions
- Tourism overlay: Visitors from other states increase the addressable audience pool
The Tuscaloosa-Birmingham corridor serves a smaller, more dispersed population with fewer people per square mile—meaning ads must travel farther to find qualified audiences.
Factor 2: Seasonal Traffic
Florida's Gulf Coast benefits from consistent traffic patterns:
Snowbird season (November-April): Northern visitors swell the addressable audience
Military presence: Naval Air Station Pensacola provides stable, rotating population
Beach tourism: Summer brings family traffic that extends reach
Alabama's traffic follows more predictable, less variable patterns—university calendars in Tuscaloosa, commute patterns in Birmingham. This creates less opportunity for audience refresh and frequency optimization.
Factor 3: Location Distribution
Florida's 6 locations showed efficient distribution—the top 3 locations captured 61.9% of visits, but no single location dominated excessively.
Alabama's 7 locations showed more concentration—the top 2 locations captured 47.3% of visits, indicating potential conversion zone overlap or market saturation in specific areas.
Key insight: Location distribution affects campaign efficiency. Overlapping conversion zones can cannibalize results, while strategic spread maximizes unique captures.
What This Means for Your Market
High-Efficiency Market Indicators:
- Population density above 250/square mile
- Tourism or military presence
- Multiple independent competitors
- Variable seasonal traffic
Lower-Efficiency Market Indicators:
- Sparse population distribution
- Stable, non-transient residents
- Consolidated competition (1-2 major players)
- Limited seasonal variation
Benchmarking Your Results
| Market Type | Expected CPV | Visits/Location/60 days |
|---|---|---|
| High-density coastal | $1.25-$1.75 | 450-550 |
| Suburban metro | $1.75-$2.25 | 300-400 |
| Mid-size city | $2.00-$2.75 | 250-350 |
| Rural/dispersed | $2.50-$3.50 | 150-250 |