Geofencing and how it can impact your business

What is geofencing?

Geofencing is real-time, location-based marketing. It is a virtual geographic boundary that triggers an action when a device enters a set location. This is an effective way to connect with and reach your users through mobile phone networks or apps, within 50 metres of a chosen location.

However, unlike standard notifications you receive on your phone, recent research has found geofencing to be 10x more effective than standard push notifications

Geofencing increases the capability for you to target your ads through geofencing to reduce audience fatigue and increase engagement, resulting in a reduction in advertising spend wastage. It means you’re marketing to the right people, in the right place, at the right time - and it’s done through app-based push notifications.

How does it differ from ‘audience targeting’?

Audience targeting is more specific to the demographic of an individual - age, sex, interests, and yes, location. However, the ‘location’ selection tool is based on where they live, not where they are at any given moment.

So, short of building your own app, how do you jump on board with this highly targeted advertising opportunity? Research suggests that 84% of this is spent on an individual user’s top five apps. Social media networks claim 14% of this daily time (25 minutes per day), dominated by Facebook. Given the dominance of Facebook in mobile users’ favourite apps, Facebook could just be the most logical App to try Geofencing advertising for your business.

How could you use geofencing to refine your local messages?

While there are many examples of how to generate successful campaigns for your business through geofencing, here are a few ideas that could work for your business, remembering that geofencing, like real estate, is all about location, location, location:

To alert your customers of a nearby retail location. ‍

This will be relevant for visitors to the area who may not be familiar with the location of your coffee shop, service station, or retail store. But it will also be relevant for showcasing to your existing (local) customers if you’ve moved premises. It’s also an effective way to survey your customers as they’re leaving your retail space.

Localised messages and offers based on user location

This might include intercepting your prospective customers at competitor locations and influencing them to come to your business instead through a more appealing offer.

Event targeting

Perhaps you might want to target a customer who is attending a particular event(eg, a music festival), or someone who has recently arrived in the country or state (eg, an airport).

While the steps to setting up your geofencing are simple, campaigns should only be used as part of a well-considered social media or app-based advertising strategy.

Would you like help with setting up location-based advertising for your social media platforms? Give DMC Group a call - we can help.