Geofencing Explained

Posted on: April 2nd, 2021

With so many marketing strategies at your brand’s disposal, it can be difficult to decide which tactics are best suited for your goals. However, if you run a location-based business and are not already using geofencing as part of your marketing plan, now is the time to get started.

What is Geofencing and How Does It Work?

Specifically, geofencing refers to a marketing strategy that allows your brand to target customers and potential customers within a precise geographical area. This area is known as a geofence, and it relies on a mobile device’s GPS location settings to target people near your location with personalized ads.

To understand how geofencing works, it can be useful to consider an example. Let’s say you own a frozen yogurt shop in the center of a busy strip mall.

By setting up a digital geofence that encapsulates the strip mall and its parking lot, you can reach nearby shoppers in the form of:

• targeted banner ads in their device browsers
• app notifications or ads
• text-message notifications (for those who are enrolled)

You might send out, for instance, a “buy-one-get-one-free” coupon to shoppers within your designated geofence. This can be a great way to bring paying customers into your store who may have otherwise not stopped in!

Benefits of Geofencing as a Marketing Strategy

Geofence marketing can be extremely effective. In fact, studies have shown that up to 72% of customers will make a purchase if a compelling call-to-action is included in a geofencing advertisement. At the same time, geofencing allows you to target only your most relevant customers.

Meanwhile, even if you’re not using geofencing to actively target new customers with advertisements, you can use it to gather valuable data about the people shopping near your store. These insights can then be used to further inform your brand’s marketing strategy.

Get Started With Geofencing Today!

Not sure where to begin when it comes to setting up a geofence or using it to your brand’s advantage? That’s where our team of experts comes in. Contact the eXpect3 Digital Media Team today to find out more about what we can do for you!