Thanks to smartphones, we now have information at our fingertips at all times. But this can also make things a little more complicated when it comes to local advertising.
With so much media going digital these days, how does a business best advertise to their target audience? How do you catch a consumer’s attention when pop-up ads and email blasts can so easily be ignored, silenced, or deleted? The answer is geofencing advertising.
But what is geofencing? Broadly, it is , the digital marketing technique that’s making it easier than ever to reach your target audience. It is a key tool in your toolbelt to innovate and ultimately beat out the competition.
Read on to learn more about geofencing marketing. In our guide, you’ll see how you can implement this novel marketing concept in your campaign strategy.
What is Geofencing?
Geofencing is intuitive technology. It uses GPS, RFID, or IP technology to set up a virtual boundary around a geographical location.
What is Geofencing Marketing?
Geofencing marketing (also known as geofencing advertising), is an emergent tool in the marketing and advertising space. It is a means of using geofencing to drive consumer engagement. More specifically, it is designed to offer consumer insights through data-driven points of engagement.
How Does Geofencing Marketing Work?
A geofence marketing campaign is all about geographic parameters. Specifically, a campaign planner can set up a geofence as a sort of imaginary boundary or virtual fence. This can be around a physical location or an entire metro. Think: dropping a pin on a map and saying, “Everything three miles out from this spot is inside the fence” and you get the gist.
However, geofence marketing can also incorporate multiple specific geographic areas. For a retail chain, this could be different brick-and-mortar locations. Or for a consumer brand, it might be spots along a public transit route that align with the company’s core demographic.
Whatever the case, geofencing is a marketing tool to target people in a specific area through data collection.
Geofencing advertising involves using a mobile app or software that triggers a pre-programmed action. When a mobile device or RFID tag enters or exits the location, the action carries out. This could be anything, including:
- A text message being sent,
- A targeted mobile ad being displayed on social media,
- Security monitoring being activated, or
- Triggering the tracking of data.
There are countless triggers. But more importantly, the field is growing and evolving. So, it allows for a great deal of creativity and ingenuity. Think of how you might want to engage with an audience and geofencing ads can likely handle it.
What is Geofencing Used For?
One of the great things about geofencing marketing is it is highly amenable. Traditionally, it was thought of solely as a means of event participation. But in reality, it can be used in everything from time-sensitive promotion to augmented reality experiences.
For example, you might use geofencing ad opportunities to trigger once a customer enters your store. In this example, you could send a promotional offer to them upon triggering the geofence. You could also help the user engage in personalized experiences that drive their willingness to purchase even higher.
Businesses ranging from retail to hospitality have all started using geofencing ads to engage with consumers.
When it comes to geofence ads in retail, a geofence marketing campaign can target mobile users specifically. It can populate alerts, promotions, or coupon offers, based on the campaign designer’s preferences. These popups could be, based on their proximity to a specific location or event. Some retailers even use it against competitors, urging customers to consider their business instead.
Should I Use Geofencing in My OOH Marketing Campaigns?
From our team, it’s a resounding YES!
We’re seeing more and more industries beginning to rely more heavily on a “phygital strategy.” Those who want to reach target audiences and potentially increase sales are smart to consider this hybrid approach.
The name is just as it implies—ads and marketing material that exist both physically and digitally. These are ads that offer personalized, interactive experiences for consumers.
Geofencing is a particularly advantageous phygital strategy for out-of-home (OOH) marketing. That’s because it grabs a consumer’s attention in a relevant way. The ad is designed , based on the consumer’s real-time location and behavior.
The Advantages of Geofencing for Digital OOH Marketing
- Alerts & Promotions: Geofencing is a popular way for retailers to deliver in-store promotions as customers enter the store. It also helps businesses target ads to a specific audience, based on users’ location data.
- Social Media Interaction: Location-based promoted filters, stickers, and other shareable content on social media networks all use the virtual boundaries of geofencing.
- Audience Engagement: By knowing more about your audience, you can provide them with specific, compelling advertising. For example, concert, festival, or fair organizers might use geofencing to engage with the audience. They could employ crowdsourcing social media posts. Or they could deliver information about the event or venue directly to those who crave it most.
- Improved Inventory Management: When you have better insight into the movement of your product, you can better manage your inventory. For example, geofencing can track the movement of a product within the store. This way, you have a better idea of its popularity.
- An Edge Against the Competition: With mobile geofencing advertising comes a competitive advantage. Geofencing provides a more personalized and convenient shopping experience for customers. This can undoubtedly bolster a stronger relationship between them and your business, which in turn can drive sales.
Here’s the bottom line: when a consumer is presented with an ad they find relevant and useful, it’s more likely that they’ll engage with it. Effective audience engagement means improved brand awareness, a higher ROI, and ultimately a lift in sales.
Build Geofencing With AllOver Media
At the end of the day, it’s about delivering the right message at the right time to the right person. And building a geofencing ads network can be your ticket to meeting your customers in the middle.
Ads that interrupt daily life don’t work and may even harm your business’s reputation. At AllOver Media, we strive to reach people in ways that add to their daily experience. We work to build compelling campaigns that are impossible to ignore, including mobile advertising.
If you’re looking to build or improve your own marketing strategy, we’re your go-to resource. Or, if you have any general questions about geofencing technology, our expert team is here to listen and help. Shoot us a message—let’s connect.
