26 Mar What is Geofencing?
We talked a bit about location-based marketing on the blog a few weeks ago. Today, we’re diving a little deeper into one specific form of location-based marketing, geofencing. Read on for the scoop on all things geofencing, from what it even is, to how it compares to other forms of marketing and how your business can benefit from it.
What is Geofencing?
Geofencing is the creation of a virtual “fence” around a real-world geographic area. In marketing, this can be used to define an area in which you would like to reach people to advertise to them.
Using GPS, Wi-Fi, or cellular data on mobile devices, marketers can track the movement of people and target them once they have crossed the boundary to enter the defined area. This targeting can take a variety of forms, from sending a text message to triggering a push notification to targeted advertising on social media.
The boundaries of a geofence can be as simple as a circular radius around a specified point, or can be a more customized shape and area.
How does it differ from other forms of marketing?
Multiple components set geofencing apart. The precise targeting capabilities it offers are a step above those offered by more standard forms of marketing. You can really hyper-target a specific demographic within a specific area with geofencing. It also allows for a personalized customer experience. The majority of consumers prefer personalized ads, so this will help you resonate more with your audience. Additionally, with geofencing, you can reach your audience in a number of ways, from text messages to in-app notifications. Thus, it allows for flexibility in your campaigns.
What are the potential benefits for my business?
With the precise targeting mentioned above, your company can save valuable ad spend. You can be sure you are only paying for your advertisements to be seen by the exact audience you would like them to be seen by, and not waste money on far-reaching campaigns.
Once you have implemented geofencing, it will also give you access to data and insights you never could have collected otherwise. These can help you further refine your marketing efforts and improve future campaigns.
Finally, you can use geofencing to target consumers who are located not only near you, but also near your competitors’ locations. You can use geofencing to send offers that encourage them to purchase from you instead. In that way, you can steal sales from others in your industry, and gain a competitive advantage.
How can I make use of Geofencing for my business?
If you are interested in trying this out but are not sure where to start, we can help! Contact us now for a free consultation. Learn how we can use geofencing and other location-based marketing techniques to drive sales for your business