I. Introduction

Geofencing uses GPS technology to define a virtual perimeter around a place. Marketers use it to determine if a customer is within that area, and it can be used for many purposes, including collecting data, sending push notifications, and more.

Geofencing is an essential tool for digital marketers because it allows them to target their customers based on location. This can be done in many ways, such as sending push notifications or making offers available when someone walks past a particular store.

While geofencing has been around for years, it’s only recently become available to small businesses through platforms like Facebook and Google Maps. Before that, only large companies could afford it due to its high cost. But now that everyone has access, geofencing has become one of the most popular tactics digital marketers use today.

II. Understanding Geofencing

Definition of geofencing

• Geofencing technology uses the global positioning system (GPS) to create virtual boundaries around a place or location. The technology is used in several industries and businesses but is most commonly associated with marketing. Brands often use it to send targeted messages to customers when they enter or exit a particular store or location.
• How geofencing works
• Geofencing relies on GPS signals to determine where a customer is located. If you’re using an app, geofencing can be as simple as recognizing when someone opens an app and then sending them an alert when they’re near your business or retail location. But the process can be more complex if you’re not using an app — say, you want to send push notifications through text messages. In this case, your company might need to use “spatial analysis” of data collected from cell towers and Wi-Fi hotspots to determine where someone is located at any given moment. You’ll also need to use software tools to create a virtual boundary around your business or retail location for better targeting.
• Geofencing can be used in many ways:
• Loyalty programs: Geofences can be set up around specific locations, such as a retail store or restaurant, so each time a customer enters, they are automatically entered into your loyalty program. This lets you reward them with points or discounts when they visit often, incentivizing them to return repeatedly.
• In-store marketing: Businesses can send targeted messages based on customers’ locations. This can be done through text messages, emails, or push notifications. For example, if someone walks into your store looking for sunglasses, you could offer them 20% off all sunglasses.
• Real estate marketing: Geofences are used by real estate companies to target people when they’re looking at buying homes near theirs or similar ones in the area. If someone takes a tour of one house but not another one nearby that has similar features and amenities,

III. Benefits of Geofencing in Digital Marketing

III. Benefits of Geofencing in Digital Marketing

Geofencing is a powerful tool to help marketers target their audience with specific messages and offers. Here are some of the benefits:

Targeted advertising

Marketers can use geofencing to send tailored advertisements to specific areas or neighborhoods rather than blanket marketing campaigns. This gives them an edge by helping them reach people interested in their products or services.

Personalized marketing

Geofencing allows marketers to customize their ads based on a consumer’s location, enabling them to tailor their message and make it more relevant for each consumer. For example, if you’re visiting a shopping mall, you might see an ad for your favorite store or restaurant when you walk by its storefront. If you visit that same store again later in the day or week, you may see a different ad because the retailer has changed its inventory or special offers based on your past behavior at its location.

Increased engagement

When consumers see targeted ads relevant to them and their interests, they often respond positively and engage with these messages by clicking through to learn more about the offer or product being promoted. This increased engagement increases sales opportunities for businesses that use geofencing as part of their digital marketing.

Improved ROI

In addition to helping drive sales, geofencing can also help improve ROI by allowing businesses to track conversions better and monitor customer behavior across different channels — including social media sites like Facebook and Twitter — so that they know who’s most likely.

IV. Advanced Geofencing Tactics

Geo-conquesting

Geo-conquesting is a tactic that many brands have used to gain new customers in a specific geographic area. It’s usually used by large companies that have already established themselves in one place but want to expand their reach into another geographic location.

Proximity marketing

Proximity marketing is when a company uses geofencing to send out coupons or deals when someone enters the area of their store or business. This is done through an app or website, where users are notified of promotions as they approach the store. The idea behind proximity marketing is that if someone sees your business from far away, they’ll be more likely to stop by once they get close enough.

Geo-retargeting

Geo-retargeting is the same thing as proximity marketing, but this time e-commerce websites use it to target people who have visited their site with special offers and discounts. For example, if you visit an online shoe store but don’t buy anything right away, then later on down the road, you might see an ad for that shoe shop pop up on social media or even in an email newsletter.

Geo-behavioral targeting

Geo-behavioral targeting uses location data to determine how customers behave at different points of the day, week, or year. For example, a retailer can use geo-behavioral data to determine when people will likely be home or out and about. This allows them to send more effective ads during those times.

Hyperlocal targeting

Hyperlocal targeting takes the idea of geo-behavioral targeting one step further by using granular location data and business data to identify specific locations where people are likely to be interested in your product or service at a given time. This allows advertisers to send highly targeted ads based on their exact location and other factors that make them more likely to respond positively to an ad, such as their previous purchases or browsing history (i.e., if they have looked at similar products).

V. Location Intelligence and Data

The geofencing marketing strategy is based on the concept that consumers are more likely to be influenced by ads near a business. Geofencing aims to send targeted advertisements to customers in a specific location.

Geofencing uses GPS or Wi-Fi signals to create a virtual boundary around an area, such as a store or restaurant. Customers receive an ad for that business when they enter that area.

Location Intelligence and Data

Geofencing uses location intelligence data to determine where customers are located, but it also requires location data to track their movements within the area. This data can be collected through different sources:

Mobile apps: These apps collect data from users’ phones so marketers can identify their locations and preferences. For example, if you have an app for your local coffee shop, it will know when you usually visit and which items you order (including how much milk!). This information can then be used for targeted advertising campaigns through geofencing technology.

VI. Geofencing Campaigns

Geofences are a powerful tool for marketers, allowing them to send targeted notifications to customers based on their location. Geofencing campaigns can notify customers about new products or deals in the area, remind them of appointments, and more. Check out these steps to creating a successful geofencing campaign:

Step 1: Define your goals

Before starting any marketing campaign, defining your goals and objectives is essential. For example, if you want to drive foot traffic from your store or increase sales at a specific time of day, then it helps to know what you want to achieve before you start planning the details of your geofencing campaign.

Step 2: Create a list of relevant locations

Once you know what type of location-based campaigns you want to run, it’s time to create a list of suitable locations for your audience; for example, if you’re trying to reach people who live within 5 miles of your business and are looking for restaurants nearby, then this is where you would start building out your list of suitable locations.

VII. Location-Based Advertising

VII. Location-Based Advertising

Definition of location-based advertising

Location-based advertising is a form of mobile marketing that allows businesses to advertise to consumers based on their current location. It uses technology that collects data from mobile devices, such as GPS or Bluetooth signals, to deliver ads to devices near a particular store or location. Types of location-based advertising include geofencing and beacons.

Types of location-based advertising: Geofencing and beacons

Geofencing is a type of location-based advertising that uses GPS data to track the locations of mobile devices. It allows advertisers to send messages or offers only when users enter or exit specific areas, such as stores or restaurants. For example, if a user has downloaded an app that lets them order delivery from one restaurant chain, then the app might send them a message with coupons for free dessert when they enter one of its nearby locations. Beacons are another kind of location-based advertising that use Bluetooth signals to detect nearby devices and deliver relevant information about nearby businesses via push notifications.

Benefits of location-based advertising

• It is the most targeted form of digital marketing.

• It can be used to create a personalized experience for the customer.

• It increases brand awareness and reach.

Disadvantages of location-based advertising

• It is expensive for small businesses and start-ups.

• It requires high technical knowledge and resources, which is not available to everyone easily.

VIII. Conclusion

Geofencing is a technology that uses GPS signals to create virtual boundaries around a location. When someone enters or exits a geofence, they receive a push notification to their smartphone.

Geofencing has been used in various ways, including as an alternative to direct mail and a way to reengage customers who have recently visited your location.

Here are some important things for marketers to know about this emerging technology:

Geofencing is already being used by some of the biggest brands in the world.

Geofencing has many benefits for marketers, including helping them provide better customer service, increasing customer engagement, and improving brand awareness.