| Summary |
| When used with mobile applications or mobile websites, geofencing marketing, also known as geofencing advertising, allows you to engage with smartphone users in a particular geographic region, like a shop. In reality, it increases consumer loyalty, optimizes data and analytics, and improves user engagement. So, learn about geofencing marketing, how it works, why ad agencies use it, and how you can use it to your benefit in your campaigns. Read on to get the answers! |
Some marketing businesses are leveraging geographical data to establish geofences in particular locations as advertising grows more costly. But, engaging consumers has never been easier with geofencing marketing. So, you may focus your advertising efforts on individuals more inclined to purchase your products rather than spending money on those who aren’t.
In fact, marketers can turn current applications into reliable marketing tools that enhance user experience, bring customers to shops, and increase revenue with contextualized mobile marketing campaigns. So, if you want to know more about how geofence marketing can help your business, keep reading!
What is geofencing marketing?
Geofencing marketing is a location-based marketing solution companies use to connect with customers. Generally, geofencing companies achieve this by delivering relevant messages to smartphone users who reach a defined border or geographic region.
In fact, this is also known as geofencing advertising, and it’s an essential new strategy for more precisely targeting a company’s most probable consumers. To understand why, here’s an example. Consider how conventional forms of marketing are carried out in this day and age.
It is common practice for companies to use mass media such as:
- TV
- Radio
- Newspapers
- Magazines
- Flyers
These are used to distribute advertisements to a wide range of people. This is a reasonably haphazard strategy since the individuals they contact may have no interest in what the firm offers.
Book to Read: Geo-fencing
Geofencing Mobile Advertising
Geofencing mobile advertising allows local, multi-channel companies to communicate with consumers and prospective customers who are nearby and, more than likely, ready to purchase using mobile devices.
Additionally, customers’ mobile devices are targeted by marketers when they search in a particular area, such as a mall, business, or even their own neighborhood. Customers are continuously bombarded with useless marketing as the market shifts.
Geographical restrictions allow companies to take advantage of two crucial factors of a customer’s journey: time and place when they coincide.
Geofence Marketing Benefits
Mobile geofencing is a powerful tool for reaching and interacting with a large number of people. You can better segment your audience and send them more relevant alerts to their current position and activity. Due to its personalization and precision, it has proved to be an excellent marketing tool.
Drive Visitors to Your Sites
It’s possible to attract customers by increasing your visibility online. Generally, this can be possible by placing geofences around popular destinations like airports, hotels, or other tourist hotspots and sending them timely updates encouraging them to stop by.
Survey Customers When They Leave Your POIs
You will better understand your company and the in-store experience by obtaining feedback from your clients. Don’t forget to present incentives or awards to encourage them to finish the survey.
Intercepting Clients at the Sites of Rivals’ Businesses
Influence your customer behavior by giving a better offer when they visit your shop. You may accomplish this by geofencing to rivals’ locations. Additionally, you may learn which demographic of your clients frequent the establishments of your competitors if you use this strategy in your marketing efforts.
Retarget Customers
If a consumer has visited a particular place or interacted with one of your campaigns, you may retarget them with a special offer or a message about your rewards program.
How to Geofence
While geofencing marketing may appear hard on the surface, it’s relatively basic — particularly when you have an expert geofencing advertising business with decades of experience on your organization’s side.
Here’s an overview of how geofence works:
- Your organization builds a geofence in a specific region and ad campaign for it
- A person goes inside your geofence and is added to your advertising audience
- Your organization begins providing advertisements to that user
You may create a virtual fence around any geographic spot you choose with geofencing marketing. Anyone who crosses the boundary of your fence with a smartphone will be added to your audience and can see your ads for up to 30 days.
Book to Read: The 2023 Report on Geofencing
How to Set Up Geofencing Marketing
You just need a smartphone app and a set of GPS coordinates to get started with geofencing. It’s important to let your social media audience know that you’re now aggressively promoting geofencing deals since this is something that not every client can utilize on their phone.
Additionally, proactiveness is essential when it comes to geofencing. Consider all of the standard parts of your current marketing approach before you start, including the following:
1. Understand the Demographics and Preferences of Your Target Audience
Before you start geofencing marketing, make sure you know who your local clients are and what their demographics are. Using this method, you can be confident that the promos you utilize will be the most effective and provide the desired outcomes.
2. Keep it Within the Distance
You do not want to make your geofencing area too big. In reality, the standard norm is a four-to-five minute travel radius. A four-to-five-minute walking radius is ideal if most people use public transportation from A to B. Meanwhile, a four-to-five-minute drive is ideal if most people use private vehicles.
3. Take Action Immediately
A compelling call to action requires action right away. Promoting in a manner that prompts potential customers to visit your business immediately is essential.
4. Respect Privacy
Transparency is critical when dealing with mobile users. Tell them how you got access to their data, mainly if it was via an app they use. Assist them in interacting with your app and location-based marketing, and encourage them to return.
5. Methods of Detection and Reduction
You may use geofencing targeting to track users based on context, day-parting, content, and retargeting. Individualize your approach and cater to various target demographics with these available choices and features.
6. Analytical Instruments
Optimize your campaigns. There are numerous methods for refining your geofencing, and looking at statistics can help you optimize your efforts.
What are the geofencing platforms?
As a location-based technique, geofence marketing depends on numerous technologies, including:
- Wi-Fi
- GPS
- Radio-Frequency Identification (RFID)
- Bluetooth
Business owners may now do what was unimaginable decades ago. Marketers may now use geofencing technology, which is compatible with 92% of U.S. devices.
With mobile devices like smartphones, you may expand your audience and increase your revenue. Due to geofence advertising, you may target consumers within an area as small as 1000 square feet with your ads.
Book to Read: 3D Geofencing Second Edition
How much does geofencing cost?
Marketers should be prepared to spend several thousand dollars on a geofencing campaign. The typical geofencing ad expenditure varies from $1000 to $30,000 per month, with campaign management services costing $250 to $1500 per month. Ad platforms like Snapchat, which costs $5 to target 20,000 square feet of real estate, may also levy a price.
Conclusion
Geofencing marketing is integral to businesses, especially in this technological age. However, it is crucial to begin installing geofencing campaigns as soon as possible to learn more about the demographics of your local region. Doing so will boost sales and effectively execute location-based marketing initiatives, even though its popularity is only slowly developing.
