Recent local advertisements have likely piqued your interest, and the driving force behind this trend might be geofencing technology. This innovative marketing strategy has rapidly gained traction among businesses.Geofencing technology empowers businesses to pinpoint their most valuable customers by establishing virtual perimeters. Upon entering these boundaries, targeted customers are prompted with ads or push notifications from a specific business, enticing them to visit a nearby location.While it may sound like a futuristic concept, geofencing is a tangible reality increasingly embraced by businesses daily. The technology is applicable across various platforms, including Facebook and PPC ads, and its mechanics are straightforward.In this article, we delve into the realm of geofencing technology and explore its potential benefits for your business.Geofencing, a location-based marketing technique, employs GPS signals to identify when a target customer enters a designated boundary. 
Businesses define boundaries around areas where they aim to engage customers close to their physical presence, which can be set up virtually anywhere. This highly precise marketing approach allows businesses to target customers based on their proximity to the business.Businesses commonly establish geofences around specific locations, events, or conferences, depending on their target audience. For instance, a business could set up an automated text message campaign for customers entering a geofence during a sale.Geofencing can also be used to target attendees at events that attract your desired market, ensuring your ads or messages reach the right audience.By employing geofencing technology, businesses aim to precisely target an audience within a defined boundary, invisible yet effectively created using GPS technology. This boundary, akin to a virtual fence on a GPS map, enables businesses to engage potential customers within a specified area.Geofencing technology operates by establishing virtual boundaries, or geofences, that leverage GPS signals to target customers within the designated area.Upon entering the geofence, customers receive tailored ads, push notifications, or text messages designed to spark their interest and encourage them to visit nearby businesses or events.Geofencing effectively targets your most qualified audience by delivering product and service advertisements when customers step into your geofence. These ads can come in the form of push notifications, text messages, or PPC ads displayed in web browsers.Example of geofencing with push notificationsImagine you’ve recently opened a women’s boutique and developed a shopping app. With a geofencing campaign in place, you can opt to send push notifications to users within your area.Push notifications are messages that appear on your smartphone screen through an app, even when the app is not open. For instance, if you’re having a sale on jeans, a push notification will alert passersby about your promotion.Example of geofencing with text messagesBy obtaining your customers’ contact information, including their phone numbers, you can also target them with text messages. If you’re utilizing geofencing technology, you can send automated text messages to customers when they’re within your geofence location.This could be to inform them about a sale, new arrivals, or simply remind them that they’re close to one of your locations.Example of geofencing with PPC adsA traditional PPC campaign is an effective method to reach target customers. Platforms like Google Ads offer location targeting, akin to geofencing, without the need for virtual boundaries. For geofencing, ads are triggered when a potential customer crosses into a geofence.For example, if you own a seafood restaurant, you can use geofencing technology to place a virtual box around a three-block radius from your location. This ensures that your ads are displayed to customers searching for targeted keywords within your vicinity.However, just as with PPC campaigns, you must determine your maximum ad spend and outbid competitors for specific keywords to ensure your ads are visible to potential customers.Geofencing technology ensures accuracy by utilizing a combination of GPS, cellular data, and Wi-Fi data. In urban environments with abundant cell towers and Wi-Fi hotspots, accuracy can range from 100 to 200 meters. In rural areas with fewer towers and hotspots, accuracy can extend a few hundred meters. Remember, geofencing works best when GPS and Wi-Fi services are activated on smartphones.While businesses are quick to adopt geofencing, a common question is, “What does it cost?” As this is a relatively new strategy, pricing can vary, and each agency has its own pricing structure.However, there are several factors that can help you estimate the cost of a geofencing campaign, including your desired monthly ad spend and the number of business locations you have.How much do you want to pay per month for ads?For geofencing campaigns using PPC ads, you’ll need to decide your monthly ad budget. Targeting specific, long-tail keywords typically costs less than general keywords due to higher competition and higher cost-per-click.A reasonable estimate for a geofencing campaign’s monthly ad spend is between $1000 and $10,000, depending on your industry and competition.How many business locations do you have?The cost of your geofencing campaign may also vary based on the number of business locations you have. For instance, if you want to drive leads to five main franchise locations, you’ll pay for each location. The fewer locations, the lower the campaign cost.For businesses interested in geofencing services, WebFX can assist you!Get in touch with us online or call us at 888-601-5359 to learn more!
