Unlock the Power of Geofencing: How Does Geofencing Advertising Work

October 19, 2022
Posted in Marketing
October 19, 2022 BRKLYN Creative™

Unlock the Power of Geofencing: How Does Geofencing Advertising Work

TL;DR

Geofencing is a tool that businesses can use to target customers in specific geographic areas with personalized content, and it is becoming increasingly popular in digital marketing. Here is the agenda:

    1. What Is Geofencing?
    2. Types of Geofences
    3. Creating and Managing Geofences
    4. Goals of Geofencing Advertising
    5. Examples of Geofencing Advertising
    6. Tips for Successful Geofencing Campaigns
    7. Benefits of Geofencing Advertising

Critical Questions to Ask Yourself:

    1. Have you thought about using geofencing?
    2. Where could you start using targeted ads?
    3. How do you remain engaged with customers and leads in high traffic, high potential areas?

End State:

Expand the way you use digital marketing with geofenced marketing strategies. Use BRKLYN loyalty cards to keep customers engaged with location-based push notifications.


The Deep Dive

Introduction

The power of location-based marketing is undeniable. As technology advances, so do the methods for targeting customers with relevant content, offers, and promotions. Geofencing advertising is a tool that is quickly gaining momentum in digital marketing. With geofencing, small to large businesses can target customers in specific geographic areas with timely, personalized content. But what exactly is geofencing, and how does it work? At its most basic, geofencing is a way to draw a virtual boundary around a specific physical geographic area, then use that boundary to communicate with customers who enter the zone. With the right tools, businesses have the potential to send the right message to the right customer at precisely the right time and place by using geofencing technology. This technology creates a unique opportunity for businesses to engage with potential customers in meaningful ways, making geofencing a potent tool in any digital marketer’s arsenal. This blog post will discuss the basics of geofencing and how your business can successfully use geofencing to reach and engage with your customers. You’ll learn the types of geofences, how to create geofences, how to use geofencing for various goals, and much more. Let’s get started and unlock the power of geofencing.

What Is Geofencing?

Let’s get after the big question: “How does geofencing advertising work?”

Geofencing is a location-based technology that uses GPS, RFID, Wi-Fi, or cellular data to create a virtual boundary around a geographical area. Use this boundary to trigger an action when a device enters or leaves. Geofencing allows businesses to send notifications, offers, and promotions to customers when they enter or leave a specific location. You can also use it to monitor employees, track assets, and control access to certain areas. Geofencing is a powerful tool that allows businesses to customize their marketing strategies and tailor their messaging to their audience. It also helps them stay in compliance with local and national regulations. With geofencing, businesses can track user behavior and gain valuable insights into customer preferences and trends.

Companies can also use geofencing to personalize the user experience, making it easier for customers to interact with their brand. For example, Avis uses location-based services to notify users when their vehicle is ready after they arrive at their destination. This service assists the customer in speeding through the terminal and directly to the rental car and provides employees with real-time customer information. By leveraging geofencing, businesses can create an engaging customer experience and maintain customer loyalty. Geofencing is an invaluable tool for companies looking to optimize their marketing efforts and increase customer engagement.

Types of Geofences

Geofences are an increasingly popular form of location-based advertising and proximity marketing. Virtual boundaries surrounding a geographical area can trigger a predetermined action when a device enters or leaves a given location. This location-based service has many potential uses, from targeted marketing to security and safety measures.

There are three main types of fences within geofencing: circular, polygonal, and geopaths. Circular geofences are the most common type to set up a predetermined radius around a specific point or area. Some companies use polygonal geofences to draw a zone with multiple points and sides, allowing for more particular boundaries than a circular fence. Geopaths use virtual paths along roads, highways, or other routes.

When setting up a geofence, businesses should consider their goals and whether they need one type of fence or multiple types to be successful. For example, a retail business may want to set up circular geofences around each store location to alert customers when they enter the area and trigger promotional notifications. On the other hand, a transportation service may want to use geopaths to send alerts about traffic conditions or road closures along routes.

Regardless of the application, location-based services offer businesses the ability to maximize their reach and understand customer behavior. Using geofencing technology, companies can better engage with customers in an increasingly digital world.

Creating and Managing Geofences

Businesses can target customers with relevant, location-based services by creating and managing virtual boundaries. Targeting with fences helps to foster a better customer experience and provides a more efficient way for businesses to reach their target audience. No matter the type, you can use geofencing advertising for a variety of purposes, including:

    • providing coupons
    • notifying about sales
    • offering discounts
    • sending notifications and alerts
    • check-in to a hotel or flight
    • delivery update
    • mobile order upgrade

Businesses can use geofencing to monitor customer activity and track customer movements within a specific area. Creating geofences is relatively simple and involves the following:

    • setting up a virtual boundary
    • determining how large the border should be
    • determining which users will be subject to the geofence

Once a company creates a border, they define what content or services you would like to provide within the geofence area. Furthermore, businesses can also manage the geofence by monitoring customer activity and adjusting the content or service they provide accordingly. Geofencing allows companies to maximize their marketing efforts while ensuring they meet customer needs.

Goals of Geofencing Advertising

Geofencing advertising is a powerful way for businesses to target customers within a particular geographical area and has numerous advantages. The main goal of geofencing advertising is to increase sales and draw more customers to businesses. By taking advantage of location-based services, geofencing advertising can target customers within a certain radius of your business. This form of advertising allows you to reach more potential customers and encourages them to visit your establishment. Additionally, geofencing advertising provides location-specific offers and promotions. This marketing helps to draw in customers who may not have known about your business before, as well as entice existing customers.

Furthermore, geofencing advertising tracks the effectiveness of marketing campaigns by gathering data on customer behaviors. This allows businesses to gain insights into how their campaigns are performing and make changes accordingly. Last, geofencing advertising is an effective way for businesses to increase sales, draw new customers, and track their campaigns’ effectiveness.

Examples of Geofencing Advertising

Geofencing or location-based advertising is an effective way to target your potential customers. It’s a form of proximity marketing that uses location-based services (LBS) to deliver relevant content and messages to mobile users based on their current location. Geofencing advertising is used in various industries, from retail to hospitality, and can be used to promote special offers, discounts, or events. For example, a retail store can notify customers of a sale or promotion when they enter the store’s geofenced area. Hotels can use geofencing to send customers exclusive offers when they enter the hotel’s vicinity. Geofencing can also provide targeted advertisements based on a user’s location. This type of advertising is becoming increasingly popular as it allows companies to reach their target audience efficiently and cost-effectively. With more businesses turning to geofencing, it’s essential to understand the different types of geofencing and how they increase conversions and drive sales.

Burger King Trolls McDonalds Through Geofencing in Mobile App

In 2018, Burger King took a creative approach to marketing by utilizing location-based advertising, or geofencing, to target customers through their mobile app. Geofencing is a type of proximity marketing that uses location-based services to send notifications to customers based on their geographic location. In this case, Burger King sent in-app messages to customers who entered McDonald’s restaurants, offering them a Whopper for $.01. This innovative marketing campaign was a clever way to troll McDonald’s and capitalized on the rivalry between the two fast food restaurants. The campaign also demonstrated the effectiveness of location-based services as an advertising tool. By leveraging the power of geofencing in their mobile application, Burger King targeted customers and increased their brand awareness. This promotion demonstrated how geofencing effectively reached customers in a more targeted and engaging way while generating more sales. Geofencing is just one example of how location-based advertising is becoming an increasingly popular way for businesses to reach customers in unique ways.

Tips for Successful Geofencing Campaigns

Geofencing campaigns are a powerful tool for businesses targeting customers within a specific location. Location-based advertising, also known as proximity marketing or location-based services (LBS), can help companies to boost their sales and increase brand awareness. Businesses should take the following steps when planning and executing their geofencing campaigns:

    1. Define their target area by carefully researching their customers and the region they want to target. This method will help businesses create more relevant ads and ensure they are reaching the right people at the right time.
    2. Implement a multi-channel approach when launching their geofencing campaigns. Utilizing mobile and web ads is the most effective way to reach customers, giving them multiple ways to interact with your brand.
    3. Track geofencing campaigns to evaluate their performance. By monitoring metrics such as click-throughs and conversions, businesses can understand which elements of their campaigns are working and which need improvement.

By following these steps, businesses can maximize the success of their geofencing campaigns and reap the rewards of location-based advertising.

Find Your Customers: Build a Fence Where Your Target Audience is Located

By knowing where your customers are located, you can tailor messages and offers to meet their needs more precisely. Furthermore, location-based advertising provides valuable insights into customer behavior, allowing you to understand your target audience better. With this information, businesses can adjust their strategies and effectively target their efforts. Finding your customers and building a fence around them can create an effective marketing strategy to help grow your business.

Use a Call-To-Action (CTA): Give Your Audience a Reason To Act

Location-based services allow businesses to send promotional messages to customers when they are near a store, restaurant, or other business. A great way to increase the effectiveness of location-based advertising is to use a Call-To-Action (CTA). A CTA encourages customers to act and can be used to direct them toward a purchase or a promotional offer. When using a CTA, you must give your audience an apparent reason to act. For example, you could use “Visit us today and get 10% off your purchase!” as your CTA. Providing motivation gives customers an immediate incentive to visit your store. You could also create a sense of urgency with your CTA by offering time-limited discounts. Incorporating a CTA into your location-based advertising campaigns effectively increases customer engagement and drives sales. Try using a Call-To-Action today and see the power of incentivizing your audience with an immediate reason to act.

Benefits of Geofencing Advertising

Geofencing advertising is a powerful location-based marketing tool that is becoming increasingly popular for businesses. Geofencing is a form of proximity marketing that uses digital location-based services to target potential customers in a specific geographic area. By creating digital boundaries around a particular location, businesses can deliver relevant, timely messages to people who have opted to receive them. This advertising offers several advantages: increased engagement and conversions, improved customer experience, and better ROI. Geofencing has the potential to be highly effective, as it allows businesses to target customers based on their exact location, enabling them to deliver relevant content to their target audience. Furthermore, geofencing can provide businesses with valuable insights into customer behavior and preferences, allowing them to tailor their offerings accordingly. Companies can reach more customers and drive more revenue when using geofencing technology.

Final Thoughts

We live in a data-driven world where technology is the key to success. Geofencing is a powerful tool that marketers can use to gain better access to consumer data and information. With the help of geofencing advertising, advertisers can send targeted ads to customers based on their location and preferences. They can also set up triggers to monitor customer behavior and send personalized recommendations or offers based on that behavior. Geofencing offers a range of advantages that go beyond simple location-based targeting.


Works Cited

    1. Business Wire. (2018, December 4). Order a whopper® sandwich for a penny at McDonald’s with the BK® app. Order a Whopper® Sandwich for a Penny at McDonald’s with the BK® App | Business Wire. Retrieved October 8, 2022, from https://www.businesswire.com/news/home/20181204005560/en/Order-Whopper%C2%AE-Sandwich-Penny-McDonald%E2%80%99s-BK%C2%AE-App

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