Targeting your marketing efforts with precision is made possible through the strategic use of geofencing technology.This innovative approach leverages technology such as GPS and RFID to create a virtual perimeter around your business, enabling you to reach potential customers within that defined area with tailored advertisements.Geofencing allows you to engage with your intended audience during critical moments, such as when they are shopping at a competitor’s store, browsing your own, or preparing to utilize your services.Curious to delve deeper into the world of geofencing advertising? Look no further. This article will cover the following topics:
What is geofencing marketing?
How does geofencing marketing operate?
Four pivotal benefits of geofencing marketing
Seven types of geofencing strategies
Integrating geofencing into your marketing strategy
Five real-world geofencing marketing examples
Geofencing marketing is a location-centric advertising method that targets potential customers within a specific geographic region of your business.Understanding the concept of geofencing marketing, you may now be wondering about its practical application.A geofencing advertising campaign is initiated by establishing virtual boundaries around a chosen location, such as your business’s physical address. When a mobile device enters this perimeter, a targeted advertisement or notification is delivered to the user’s device, promoting your local offerings.Geofencing technology is powered by a blend of technologies, including Wi-Fi, GPS, RFID, and Bluetooth.Geofencing marketing offers numerous advantages to businesses. Below, we explore four significant benefits:
Enhance local foot traffic and sales
Improve marketing outcomes with data-driven campaigns
Personalize customer experiences
Optimize marketing costs
Continue reading to uncover more insights.Geofencing can significantly bolster your local SEO strategy by increasing your visibility in local searches when your audience is seeking your products or services in their vicinity.This enhanced visibility leads to greater foot traffic and sales, as more local customers discover your business.Analytics play a crucial role in geofencing marketing. They provide your marketing team with real-time, actionable data to inform future campaigns.Key metrics you can track include:
Ad impressions or views
Visits to conversion zones
And more!
Geofencing marketing also allows for on-the-fly campaign adjustments. If you observe low engagement with your promotions, for instance, you can investigate the issue. This could involve refining your target area or timing.One of the most compelling benefits of geofencing marketing is its ability to personalize customer experiences based on data insights.Your geofencing campaign will offer in-depth insights into the local population’s demographics and the offers that pique interest in your business. Utilize this data to tailor your messaging to resonate with your target audience.For instance, if a particular product is popular with a certain age group, adjust your messaging and targeting accordingly to boost sales.Finally, geofencing marketing ensures highly cost-effective campaigns. Since your marketing efforts are geographically targeted, you avoid unnecessary expenditures on reaching individuals outside your intended area.This precision ensures that every marketing dollar is spent on potential customers, reducing waste and maximizing ROI.When integrating geofencing into your marketing strategy, it’s essential to understand the various geofencing tactics available. Here are seven to consider:
Location targeting
Event targeting
Addressable geofencing
Keyword targeting
Category contextual targeting
Geo-optimized targeting
Website retargeting
Explore each tactic further in the following sections.Location targeting, a common geofencing strategy, involves focusing on a specific geographic area, often a competitor’s location.For example, a wedding dress retailer might create a geofence around David’s Bridal to target their customer base. When these customers are near David’s Bridal, they’ll encounter advertisements from the competing wedding dress company.Location targeting is an effective method to draw customers to your business and away from the competition.Event targeting involves setting up a geofence around a location where an event is taking place, targeting individuals who attend during the scheduled timeframe.For instance, a country-themed bar and restaurant might target individuals who attended a local country concert, knowing they are likely interested in a country bar.Addressable geofencing targets individuals who live or work at specific addresses, making it ideal for B2B companies seeking to reach decision-makers at particular companies or for businesses with customer address lists.For example, an HVAC company with a list of previous job addresses could use geofencing to target these individuals with promotional offers for yearly maintenance.Keyword targeting involves reaching potential customers based on the content they consume online, a highly effective way to target individuals interested in your industry.For example, a cabinetry supplier might target keywords related to kitchen remodeling to show ads to those who have been searching for related topics.Category contextual targeting utilizes geofencing to target individuals based on the online content they consume, focusing on specific topics or categories of information.Geo-optimized targeting involves reaching individuals in a specific geographic area, based on zip code, city, state, or similar criteria, ideal for companies looking to build brand awareness in a broader geographic area.Lastly, website retargeting involves serving ads to individuals who have previously visited your website, aiming to drive them to your physical store.Implementing geofencing into your marketing strategy is straightforward. All you need to get started is an app and GPS coordinates.Here are some simple tips for incorporating geofencing into your marketing strategy:
Conduct thorough audience research
Maintain a small geofencing boundary
Ensure your call-to-action is clear and actionable
Utilize all targeting techniques
Read on to learn more about each tip.Your target audience is the cornerstone of geofencing marketing.Understanding your audience and their preferences allows you to create a targeted area that drives results and develop ads that engage shoppers and encourage purchases.Review existing data, such as social media interactions, to identify your target audience.Keep your geofencing boundary small to avoid promoting your brand to uninterested individuals.Consider the mode of transportation prevalent in your city—walking or driving—and adjust your boundary accordingly.Your call-to-action should be clear and actionable, guiding users through the buying process.In geofencing marketing, you can incorporate various external marketing techniques, including:
Context targeting: Displaying ads relevant to the content on a webpage, such as an ad next to a local restaurant news article.
Content targeting: Targeting keywords used in searches and the intent behind those keywords. If you have content for the keyword “restaurants with private dining areas,” ensure your content discusses your private dining options.
Retargeting: Showing ads to users who have viewed a product on your website, such as after visiting your storefront.
Dayparting: Targeting users at specific times of day, also known as ad scheduling. If your target audience is active on weekdays, for example, run your promotions Monday through Friday.
Geofencing marketing complements your digital marketing strategy, providing insights into your target audience’s activity and post-store visit marketing opportunities.For inspiration on geofencing marketing campaigns, consider these five real-world examples:
Taco Bell
History Channel
Burger King
BMW
American Eagle
Taco Bell, a leading fast-food chain, utilized its mobile app for geofencing advertising, targeting users under 30 with push notifications enabled. The goal was to encourage the phrase, “Yo quiero Taco Bell.”By implementing geofences near Taco Bell locations, the company saw a six percent increase in annual profits, translating to nearly $600 million in additional profits.The History Channel, a television network dedicated to history, increased brand awareness by partnering with Foursquare, a mobile app for discovering local restaurants, entertainment, and more.When users checked into historical locations like the White House, they received additional information about the location.Burger King’s Whopper Detour campaign is a prime example of geoconquesting, a geofencing strategy designed to draw customers away from competitors.By setting up geofences around McDonald’s locations and offering a one-cent Whopper if purchased through Burger King’s app, the campaign led to over 1 million app downloads in just a few days.BMW incorporated geofencing into its marketing strategy with the BMW Trackstar and BMW Trackstar Advance services, which track vehicle locations for security and offer an additional revenue stream through annual subscription fees.American Eagle, an apparel company, successfully used geofencing marketing by targeting mall locations and its competitors’ customers with special offers and incentives.This approach resulted in a threefold increase in in-store sales, generating new revenue for the business.Stay tuned for more tips and tricks to create a geofencing marketing strategy that yields real results. Subscribe to our newsletter or contact us online for professional assistance in developing, launching, and managing your geofencing advertising campaign.
