What is geofencing?

If you’ve researched digital marketing strategies, you’ve probably come across the term “geofencing.” Like it sounds, geofencing refers to a geographic targeting method that lets you set a virtual barrier around a location and target based on it. This offers advertisers the ability to show marketing messages to users on their mobile devices depending on the area they are located at a specific point in time.

How does geofencing work?

Geofencing uses global positioning (GPS) or radio frequency identification (RFID) to establish a barrier around a target area that you define. When a mobile device enters this barrier, and if the user matches any other targeted demographics you’ve established, your ads have the opportunity to display to the user.

How do I apply geofencing to my marketing strategy?

Geofencing offers many possibilities for a variety of businesses, but it’s most frequently used by companies that have a brick and mortar store that they can geofence around. For instance, a downtown coffee shop might set up a geofence so that once a mobile device enters the barrier, the user is targeted with an ad to stop by and get their caffeine fix. In this example the coffee shop is able to use geofencing to target only users who are close by and likely to make a purchase, allowing for their advertising dollars to go further.

If you don’t have a physical location, you may be wondering how geofencing could work for you. With geofencing, and with any marketing strategy, think about your potential consumers, who they are and what they do. Ask yourself, what leads them to purchase from you? At what stage are they in the buying process? For customers nearing the end of the funnel, one tactic you can employ is geofencing around your competitors, particularly if you sell a product or service that customers tend to shop around for, like a vehicle sale. A car dealership might make a list of all of their competitors and display ads to customers right when they’re shopping. Giving a customer a special offer may cause your products to enter their product consideration and eventually land you the sale.

How can I start using a geofencing strategy?

Now that you know how geofencing works and a few ways you can apply it to your marketing strategy, you’re probably ready to get started. We would be happy to discuss geofencing with you and come up with a plan that will work for your business and budget. Contact us today to set up a free 30-minute consultation.

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