You may be asking yourself, exactly what is a Geofence?
Geofences are digital parameters which you can place around physical locations. Watch the video below for a more detailed explanation.
Geofences Capture Information and Build Targeted Audiences
In the world of digital marketing, geofences can capture information from audiences visiting target locations. So, you can determine the targeted audience based on the location they are attending.
As a result, advertisers find it easier to get messaging in front of a geographically targeted, active consumer. Moreover, it’s a technology that serves smartphone users with ads that are relevant.
Therefore, when you integrate geofencing strategies into marketing plans you can get more sales, engagement, and customer loyalty.
Geofencing Campaign Example
Here is a picture showing 4 target locations. For example, the client is a steak and seafood restaurant owner. He wants to get advertisements in front of people going to local boat docks. Thankfully, geofencing a competitor restaurant location, the client can serve ads to people attending competitor locations.
Let’s get into the nuts and bolts a little bit about: what are geofences and how you can create them.
Technical Information on Geofencing
To begin, geofence applications use triangulating GPS, RFID, WIFI or cellular data to form a geofence. Remember, this is a digital parameter around a physical location.
To clarify, RFID is short for radio frequency identification. A cell phone has a unique, active RFID chip. It works by constantly transmitting and receiving information through an antenna and microchip.
Hopefully you have a better understanding of what are geofences. So, now let’s look at how the technology you can use in marketing.
It may seem complicated. But when you work with an experienced team like GetGeofencing, we make it easy to achieve your objectives. For more information, go here.
The Geofencing Campaign Process
Significantly, it’s a three-step process.
- First, provide the physical addresses that you want to geofence.
- Second, draft ads that you are going to display to your audience. Further, you use them on various websites and apps accessed by potential customers.
Third, set a budget. Specifically, geofence campaigns range from $1,000 to $30,000 per month.
If you have questions about launching a geofencing campaign, contact us!
Another Geofencing Example
Suppose you have a furniture store. You may have several competitors near your furniture store. Surprisingly, with geofencing, you can turn a seeming disadvantage into an advantage.
Meanwhile, you know people attending your competitor stores are actively out looking for furniture. Therefore, putting an offer in front of the active audience, you can witness a substantial increase in business results. For example, you can increase the foot traffic of your store and simultaneously improve the website traffic.
Besides, geofencing also allows users to track their ad campaigns. We can track people receiving ads and physically visiting your store. In addition, we can track traffic to your website. As a result, we help you obtain a precise ROI on marketing expenses.
Bottom line. If you have a brick-and-mortar store, a geofencing campaign is a marketing necessity.
Geofence Campaign Statistics
Here are some interesting statistics about this relatively new and growing marketing channel:
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- In a geofencing campaign, you can use 92% of smartphones. This includes IOS, Android, Google, and other operating systems.
- The average person spends approximately 5 hours a day on their phone.
- 53% of shoppers strongly consider a competitor’s offer when making a purchasing decision.
- Approximately 22% of brick-and-mortar businesses use some form of hyper-local marketing.
- 71% of people research on their phones before making a purchasing decision.
- Mobile ads with geofencing have over double the click-through rate as opposed to campaigns without a geofencing component.
To conclude, geofencing is an advanced marketing technique that help businesses meet their goals. Hopefully, now it’s clear what are geofences and how they may help your business.
In closing, hopefully, we have answered your question about what are geofences and how they may help your business.
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