Increase Your ROI By Adding Geofencing To Your Marketing Campaigns
Let's Talk About Geofencing
By now, I'm sure you've heard about Geofencing and all of its endless possibilities to help you make money. But if you're still scratching your head wondering what exactly Geofencing is and how can you use it to promote your business, you've come to the right place. I first started hearing about Geofencing around 2014, when digital marketers began talking about a new way to pinpoint customers and serve them ads. As the hype surrounding this new magical marketing started to grow, so did the confusion and misconceptions. So today I want to share the basics of Geofencing and how to add it to your digital marketing toolbox.
What Is Geofencing?
Geofencing allows marketers to create a virtual fence or boundary around a location, such as a business, neighborhood, or even a few city blocks. The fenced area is created by using GPS (Global Positioning System), RFID (Radio Frequency Identifiers), and BlueTooth Beacons to locate smartphones and digital devices within the boundary. This technology has been in use for quite some time but was not very effective with standard cell phones using slow networks. Over the past couple of years, smartphones have exploded in popularity and faster LTE networks are widely used by service providers. Thus creating an environment that is able to support hyper-targeted location-based marketing.
Practical Ways To Incorporate Geofencing Into Your Marketing.
Let's pretend we're working with a local restaurant that wants to promote a special offer as a way to get more people to visit on weekdays. We could set up GeoFencing locations around middle & high-income neighborhoods within a 2-mile radius. Once the users receive the promotional offer, we can even retarget them for the next 30 days no matter where they're located. This will help reinforce the idea that there is a great dinner deal just a few minutes away from where they live.
Another example of marketing with Geofencing is targeting a competing brand's location. Auto dealers are always looking to make a sale and the competition can be fierce. In order to get a leg up, we can create a campaign that targets rival car dealers. By creating a Geofence around their dealerships we can serve ads to individuals who have visited the lot to shop for new cars. This gives us the perfect opportunity to make an offer of no money down, zero percent financing, or cash back rebates.
Geofencing has grown and improved in so many different ways over the past few years to finally become a viable marketing tactic. With better locational targeting, custom audience creation, and conversion reporting we can now target our ideal client and report on how many times they viewed the ad and did it lead to them making a purchase. While I do love Geofencing, I believe it is best used in addition to other digital marketing methods like PPC, SEO, and Social Media Marketing.