Geofencing is defined as the creation of virtual boundaries around a physical area. In regards to marketing, geofencing refers to location-based advertising, where a user’s location is recorded and advertisements are targeted to them based on an array of accumulated data, centered on the area in which they reside.
Marketing professionals around the world are beginning to utilize this tool at a greater rate because of the enhanced efficiency it allows companies to connect with those who are most likely to engage with their content.
How Does Geofencing work?
To understand how geofencing enhances the way in which companies market to consumers, you’d first need to understand the process of geofencing. The process consists of 4 components:
- The Barrier – A barrier is a pre-set area, intertwined with some form of a digital interface (i.e., web page or mobile application). A user has the option to either specify their location by inputting their address, city, or radius into the appropriate area when prompted via a notification or (if their GPS is enabled) be automatically detected once they cross into a said specified area
- Crossing – After a barrier is set, the next step entails knowing when a person has crossed into an area. This information is usually acquired if an individual is equipped with a smartphone because internet-enabled smartphones have GPS built-in, which allows for geofencing related beacons to easily detect when a person has crossed a pre-defined barrier.
- Messaging – Once a person crosses a barrier, the next step is to alert them, via app notification, text message, or digital ad.
- Permission – This is the most important step. The message, regardless of mode, essentially entails getting permission from a user to do two things: Gain access to their GPS information and ask the user to turn on notifications.
Geofencing has opened up a whole new realm of possibilities pertaining to marketing. Some ways in which companies can utilize this concept to help achieve their marketing objectives include:
- Text Engagement – Once a consumer crosses into a geofenced area and opts-in to receiving text notifications, companies can then begin sending them marketing material to convert leads into customers and grow email lists.
- Social Media Ads – Once consumers cross into a geofenced area, company ads subtly appear across their social media platforms.
- Mobile Application Download Engagement – Once a consumer downloads an app on their mobile device, they will then be sent a notification prompting them to go shop, utilizing a promo code or some other promotional tool.
- Web Advertisements – Once a consumer crosses into a geofenced area, the ads from brands will appear as they surf the web, persuading them to take advantage of brand deals via coupons, etc.
- Television Advertisements – As long as a consumer watches television and lives within the confines of your barrier, they can be targeted via relevant ads to go online or visit your business’s brick and mortar location to learn more about what your business provides or to make a purchase.
Companies have the power to fully customize their geofence perimeters. For example:
- Companies can set a geofence around their brick-and-mortar location to persuade people to stop in, using ads.
- Traveling salespeople can set geofencing around different locations before they arrive in an area to notify leads that they are in town.
- Lawyers can launch a geofencing ad campaign around specific places of interest, such as jails and hospitals, to attract leads.
This already effective method of marketing can be further enhanced by understanding the method in which a lead was exposed to your company’s advertisement. Combining the knowledge of not only a consumer’s location, but also their point of exposure (i.e., television, radio, or newspaper) can help you fine-tune your digital marketing efforts, resulting in heightened marketing efficiency.
If you’d like to learn more about geofencing from an experienced team of digital marketing experts, visit Adcellerant today.