You may use geofencing to promote to your target audience while they’re purchasing with a rival, exploring your brick-and-mortar or online store, or even getting ready to utilize your service. But what is geofencing marketing, exactly?
Understanding Geofencing marketing
Geofencing marketing (also known as geofencing advertising) is a sort of location-based marketing that allows you to reach out to smartphone users in a certain geographic region, such as a store, using mobile applications or mobile websites. It is also one of the a company could provide.
Geofencing is a location-based system that uses Wi-Fi, GPS, radio-frequency identification (RFID), and Bluetooth, among other technologies. For company owners, this may have appeared inconceivable decades ago, but it is now a reality.
You may reach your audience in new ways using geofencing marketing, which is compatible with 92 percent of U.S. smartphones, driving your profitability to new heights. That’s because, as previously said, geofence marketing targets consumers based on their geographic location, which may be as precise as 1000 square feet.
What is the cost of geofencing exactly?
Several thousand dollars can be spent on a geofencing marketing campaign. The average monthly geofencing ad spend is between $1000 to $30,000, with campaign management fees ranging from $250 to $1500. Specific ad platforms, such as Snapchat, may demand a cost, such as $5 for targeting 20,000 square feet.
How does it all work?
While geofencing marketing may appear hard at first glance, it’s actually rather simple – especially when you have an experienced geofencing marketing business on your side with decades of expertise. Let’s take a look at a quick summary:
- Your firm establishes a geofence in a certain region and an ad campaign around it.
- When someone enters the geofence, they are added to your advertising audience.
- Your organization begins sending those user advertisements, whether through alerts, in-app ads, or search or display adverts.
Here’s a more detailed example:
Assume you’re a fine-dining establishment that also hosts events like corporate parties, weddings, and family reunions. You do, however, have some competitors within a few blocks of you, and you want to go ahead of them.
You may establish a virtual fence around any geographic location you desire with geofencing marketing. Anyone with a smartphone who walks inside the perimeter of your fence — or enters and exits the boundary — is added to your audience and becomes eligible to see your adverts for up to 30 days.
Keep in mind that your fence may be set up practically anyplace. You may build one around your business or around the site of a rival. You might even set up a geofence around the site of a bridal gown store or a consulting business that frequently refers clients to you.
Geofencing marketing to be used in order to target specific places
Are you interested in learning more about geofence marketing? Here are some locations where geofencing marketing may be used:
- Your location
- Competitor locations
- Events or trade shows
- Households via addressable geofencing
- Nearby streets and stores
You may target more than these areas, however, this list might assist you to come up with ideas or places to target for your business. You can find some great that can help you in understanding the process better.
The Advantages of Geofence Marketing
Now that we know what geofence marketing is and how it works, let’s have a look at some of the advantages of geofence marketing:
Boost customer loyalty
It costs 10 times more to acquire a new client than it does to keep an existing one. That is why, in today’s market, cultivating shopper loyalty is vital. Geofencing marketing can assist your organization in accomplishing this – and without always giving promotions or discounts. Instead, people discuss what your organization did better than the competition.
Improve data and analytics
Analytics is a critical component of geofencing marketing. It is data-driven, providing useful information to your marketing team or marketing provider for your next campaign. Geofencing also gives real-time data to your team. You can assess the following factors:
- Views or impressions of advertisements
- Visits to conversion zones
Increase user engagement
Based on the data you collect, you can improve your marketing and raise user engagement rates. In a nutshell, you’re honing your audience in order to get greater outcomes. You’re also figuring out which calls-to-action (CTAs) and ad copy work best for your target demographic.