Geofencing marketing is a kind of location-based marketing in which geographic boundaries are placed around the area of interest. If a mobile device enters this area the geofencing triggers a series of events. The triggers mainly consist of the delivery of some type of ads. It was done by using SMS earlier but the technology has developed the use of push notifications and fit seamlessly into the stack of programming ads.
Geofencing technology has been around for a while. It has constantly been evolving as marketers finding innovative ways of using it effectively. Although geofencing is specifically useful in the field of instant location-based marketing it also has a role to play in attribution, retargeting, and other location-specific entities.
How does it work?
Geofencing normally consists of these steps,
- Identifying the geographical radius of the real-world location.
- Setting up the virtual barrier or geofencing across the location.
- When the mobile device enters or leaves the area some event is triggered.
Benefits of geofencing
Geofencing can also be dynamic as it can change, grow, or shrink depending on the criteria set by the user. For instance, if you are using geofencing for attracting clients to a restaurant you will need to target the people that are close by to the restaurant venue during the busy hours of the day. During the slower hours of the day, you will have the option of increasing the reach of your geofencing. The use of location data for your geotargeting also means that you are targeting more devices than your first-party prospects.
Another advantage of using geofencing is its capability to measure the effects of location-based marketing campaigns. For instance, if you are targeting the mobile devices depending on their proximity to a specific location you need to know if they have provided the output desired especially in the case of the real world. Using the location data also allows you to confirm whether the device has visited the retail location after the advertising message was delivered.
Advantages of geofencing for local businesses
Geofencing can benefit the local businesses a great deal especially those relying heavily on the location visits for the generation of sales. You can,
- Engage the local customers that are likely to respond positively to your messages.
- Attract new clients by announcing special discounts when they are in the area.
- Win a purchase of a shopper passing by who was already on the way to another local competitor.
- Stay away from being limited to your store location. You can also target the shoppers who are visiting businesses similar to yours in an attempt to get them to your store with a sneaky discount.
Limitations of geofencing and the workarounds
Lack of audience scale can be a bit of a problem in geofencing. When you are using the technology with your application large audiences are required to send messages to satisfy the scale necessary to tip the needle. If you can access better geodata it means that you can check how a device behaves over time. Even though geotargeting can be effective for the moment, building a detailed profile and making use of it for building segments will add more reach and greater accuracy.
Greater accuracy also means that you are increasing the chances of a venue visit instead of just messaging a person walking close-by. Therefore the use of polygons or accurate POI geofences can aid you to attribute the advertising campaigns better. It extends beyond the normal geofencing campaigns when you include digital advertising, out of home campaigns, etc.
In a nutshell, geofencing can go a long way if you can be creative. This technology is making things a bit easier in the fast-paced world of business for engaging the customers while they are on the move. You can use the services of professionals for implementing geofencing for your business. If you live in the Clearwater, FL area you can reach out to I SEO U Company to have consultations and for setting up the technology.