Geofencing marketing: what is it? Why is it needed?

Users often receive advertisements for a product they only intended to buy. It seems that the Google search engine is able to read thoughts, but this is just a simple marketing ploy. There is such a way to sell goods and services – geofencing marketing. Even when a user is on a competitor’s website, marketing geo zoning makes it possible to sell goods and services of a specified brand.

Geofencing marketing: what is it?

Geofencing marketing is a trend that has long been used to promote goods and services. Brands rely on the fact that the potential consumer is marked in a certain geolocation and receives appropriate advertising. In this way, it is possible to improve the marketing strategy and send targeted notifications to customers in a targeted way. 

The method is based on a location determination. Mobile devices automatically send geolocation data, which should be used to create a strategy. This kind of marketing maximizes the results and sends notifications to those customers who can place an order.

The modern form of geofencing marketing is popular for several reasons because as a result of the promotion, brands receive:

  • increased popularity;
  • growth of target audience involvement in the sales funnel;
  • simplification of search engine optimization when building SEO and advertising strategy on the basis of geofencing;
  • information about repeated presence;
  • fast targeted advertising in the geofence.

Re-entry allows you to determine the client’s interest in continuing the cooperation. In this way, it’s possible to make the consumer a fan of the brand and develop relationships. All these advantages make it possible to properly manage the geofence, find and expand your target audience and, accordingly, increase sales.

How does geofencing work?

Lack of data on the concept of “geofence” is a significant obstacle to creating a marketing campaign. To put it simply, geolocation is a specific sector on the map which is limited by an invisible fence. Thanks to this, moving between different squares allows you to determine the customer’s interest in the offer.

The appearance of the device within certain boundaries facilitates the implementation of a pre-programmed action (sending notifications, advertising, reminders). If the user’s device is out of the set limits, the marketing message will not bring results.

If it seems to you that GPS and geofencing are the same things, you are making a mistake. The GPS signal shows the current location in space, while geofence data works in a different way. The easiest way to explain this is to use a real-life example, such as the need to find a gas station:

  • GPS signal indicates that the customer is in the area you need;
  • the system responds and sends a notification about the nearest (your) gas station;
  • the client goes purposefully to the purchase.

Geofencing marketing is useful in that you can set any search targets. This means that the size of your store doesn’t affect the result. The system simply leads the client to you.

How to get the maximum benefit?

Geofencing display ads can be a good initiative to increase the traffic to your chosen store or social channels. In this case, you need to focus on your target audience. Knowing and assigning a location will not help with the setup. If the goals are clear, then it is possible to build a successful marketing campaign with geographic context. This feature makes it possible to increase sales, and accordingly, business profits.

Developing and implementing a successful geofence marketing plan involves the implementation of a certain sequence of steps:

  1. Specification of the geofence. Each user is able to set geographical boundaries for his ads.
  2. Setting to limit the entry and exit of the geofence system. Entry conditions should be triggered if the subject approaches the assigned territory.
  3. Combination of targeting and geofencing. This combination makes it possible to increase the target audience and, accordingly, the number of potential buyers.
  4. Placement of ads within the geofence. Bright visualization and individual advertising appeal can make it more attractive.
  5. Conduct analytics and optimize the campaign. Include analysis in the process of monitoring various metrics that relate to geozonal marketing.

By following these steps, you can achieve success in geofencing marketing ads campaigns.

Geofencing marketing benefits

Building various marketing campaigns on the geofence should provide positive benefits. This is primarily due to local companies in local markets, as the entities present are potentially attractive to the seller.

In addition, marketing on the phone is accessible and convenient for almost every user who dynamically moves around the nearby territory for a certain period of time. As a result, advertising reach and target audience is much wider than the use of statistical advertising in various media.

Geofence marketing can become a market advantage over other types of promotion. Geozone marketing makes it possible to collect information from the subjects themselves. This leads to the fact that planning the right promotion strategy is simplified. And from classical marketing it is known that primary sources of information are among the most reliable.

Geofence marketing enables each company to increase not only visit traffic, but also the number of potential buyers. This type of activity is carried out by professionals. It is quite difficult to deal with all the marketing intricacies on your own. But you shouldn’t give up geozone marketing. Experts can give valuable advice, and the use of recommendations in practice will lead to the desired result.

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