How Does Geofencing Marketing Work?

“Geofencing” sounds like a fancy technical term but the idea is actually pretty simple. In essence, geofencing is a location-based service that triggers when a person enters a specific geographic area. Like a regular physical fence, geofencing applications create a virtual “fence” around some area and keep track of when people enter and exit that location. 

Geofencing is a particularly potent tool for advertising efforts as it allows for targeted ads for users in a specific physical location. A geofence can activate when an individual enters the designated radius and sends targeted advertisements and deals via the user’s mobile device. It offers a method for location-based advertising.

How Does Geofencing Work?

Geofencing works using RFID (radio-frequency identification) and GPS -enabled software to draw out a radius around an area. The geofence then triggers a response when someone with an authorized device enters or leaves that area. 

Geofences are usually defined by the code of a specific app. For example, a store might design a geofence to trigger when people who have their app go within a certain distance of one of their outlets. Or a concert venue might design an app to give information about an event. In these cases, a user has to opt-in to any locations services the app might use. 

Geofencing has more than just marketing applications too. There are end-user applications with geofencing capabilities that let users define their own regions. For instance, you can set up a geofence on an app to turn your lights on when you are close to your front door. Or you can ask an app to push a reminder when you enter a specific area. 

The reason why geofencing has taken off in recent years is the prevalence of internet-connected mobile-devices in our lives. 

Why Is Geofencing Useful for Marketing?

When you think about it, companies that use geofencing applications for marketing are not really doing anything new per se. Marketing campaign have always relied on gathering demographic data about specific locations to adjust marketing efforts and push certain products in those areas. Geofencing marketing just gives a new, powerful virtual tool to gather real-time data and make ad pushes more relevant, immediate, and personalized.

Geofencing is so useful for marketing because you can target advertising to specific locations where your customer base is likely to be. Say your company specializes in pet products. You could potentially set a geofence to go off when people are near an outlet with your products. The powerful location and data tracking features give valuable insight into demographic movements so you can better plan your marketing efforts

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Geofencing is a relatively new software that gives innumerable avenues for marketing applications. The no. 1 goal of marketing is making sure that your ads are being seen by the right people and geofencing makes it easier than ever to do so.