In today’s modern consumer marketplace, almost all advertisements are received virtually everywhere, and marketers actively hunt for new ways to address their followers more personally and effectively.
Enter geofencing marketing, the one such innovative strategy that allows businesses to connect with local customers as soon as they arrive within the targeted region. This article will explain in detail what geofencing marketing is, how it operates, and why it has become an important resource in today’s marketer’s collection.
What is geofencing marketing?
Geofencing marketing is a type of position marketing used with GPS, RFID, Wi-Fi, or cellular data to create a virtual network around a given geographic place. This virtual hedge (also called – geo-fence) allows businesses to execute targeted delivery of messages within the defined area.
Those messages can travel through the channels (voice messages, text messages, e-mails, etc.) that correspond to where they are located or how they communicate.
How does geofencing marketing work?
As mentioned, this type of marketing offers an advanced feature, e.g., GPS or Wi-Fi to create geographic boundaries around a location. When the consumer walks into this specified boundary, the geofencing system identifies that and takes action, usually with a push notification or a marketing message or as per the automated command on the system.
The system’s location data is collected in real time so that messages are relevant, can be modified when necessary, and are timely. This approach enables businesses to deliver strong, position-specific marketing content to engage potential clients.
Benefits of Geofencing Marketing
- Increased Relevance: Geofencing marketing allows businesses to show targeted displays and elevations to consumers in real-time based on their geographic position, making the content more applicable and meaningful to the company.
- Cost-effective: The marketing also helps the business reach a particular audience or location without spending more on other audiences that won’t bring any results. This makes it a relatively cheap way of advertising as compared to other conventional forms of advertising.
- Improved Engagement: Geofencing marketing takes advantage of providing content designed for different places, thus reaching the required audience at the proper time and increasing conversion rates.
- More significant ROI: Since this technique can send messages to individuals within a certain area, offer customized content, and offer detailed analytics, geofencing marketing may offer more value than advertising.
Common Uses of Geofencing by Marketers
- Brand Application: Geofencing can remind consumers to transact with a particular business when they are nearby and within the set proximity area through advertisement messages, coupons, and long-term benefits.
- Social Media Advertising: It can be applied in location-based social networks, mobile advertising to target a specific area, hence providing a more appropriate advertisement.
- Event Marketing: Geofencing is also helpful during events where companies can communicate with their audience, offering them a promotional offer or discount while they are at the event.
- Real Estate Marketing: Real estate agents can encircle their strategy around a property area and send potential customers information and offers right where they are.
Future of Geofencing Marketing
Geofencing marketing has a bright future due to exponential developments that are improving its delivery prospects. Geofencing will be more specific, using artificial intelligence and machine learning integration to provide hyper-targeted content.
With the wide-ranging use of 5G technology keeps on rising, the real-time transactions in marketing, like geofencing marketing, becomes more efficient.
Conclusion
Geofencing marketing can be an effective solution for organizations willing to promote content targeted at customers in a specific location. Using technology and analysing the data allows the marketer to send messages at the right time and gain the audience’s attention so that they become frequent shoppers. Geofencing marketing is useful and desirable to any marketer today due to its flexibility and numerous advantages.