Geofencing is a form of location-based marketing where a virtual digital perimeter is drawn and mobile ads are served to anyone who enters this space. A Geofence can be drawn around your business, competitors, partners, a public space, or an event venue.
Geofencing is becoming increasingly prominent in marketing due to its ability to help companies target customers based on their behavior and be top-of-mind for customers at an opportunistic time when customers are ready to make a purchase. A dog walking service can draw a geofence around local pet stores, dog parks, and pet groomers. Or a restaurant in a busy shopping district can draw a geofence around their street inviting hungry shoppers to stop by for a break.
How Does Geofencing Work?
When mobile device users enter a geofence their phone or tablet will be tagged, allowing them to receive ads displayed within their mobile internet browser and applications. Users can be retargeted with ads for a scheduled period after entering the geofence, usually for anywhere up to 30 days.
Best of all, geofencing has the capability to track whether users who have received your ads engage with your company and visit your business, allowing you to gage the effectiveness and tangible results of your campaign.
Geofences don’t have to be permanent. More companies are understanding the value of using location-based marketing on a short-term basis at events–for example, a community gathering, concert, or trade show. Imagine being able to target attendees at a trade show and inviting them to visit your booth.
The Impact from Geofencing
Now, 90% of cell phone users have location based services turned on, making them eligible to be tagged in a geofence and receive ads. Not only is there an increasing audience for mobile marketing, but there are increasing results. Mobile has a growing impact on customers and their purchase decisions. According to Forrester, more than $1 trillion of in-store sales were influenced by mobile marketing–and geofencing is a form of mobile marketing where your company is able to zone in more specifically on a target audience based on their locations and by extension their behavior, making it a particularly effective form of mobile marketing.
Geofencing is being used by a spectrum of companies in unique ways to drive lead generation, brand awareness, engagement, and sales. If you haven’t considered geofencing already, it’s a tool worth exploring.