What is Geofencing? How Location Based Marketing Works

what is geofencing

Invested a lot of money to make the best business site available? It won’t matter if people don’t know it exists.

A good website design and the best products or services still won’t earn you a profit until you market your business in an efficient manner.

This is the reason you should consider geofencing marketing. It’s one of the major upcoming technology and digital methods you can utilize to gain the advantage.

In fact, about 50% of agency marketers use location-based ad targeting to reach niche market audiences. It attests that these precise modes are helpful in bringing in more customers.

This is all possible through geofencing.

But what is geofencing? How does it work?

To know what it is and how it operates, we have taken note of these pointers to see if you can also make use of it.

What Is Geofencing?

What and how does geofencing work? This is a practice that uses global positioning (GPS) to define geographic boundaries. It also uses radio frequency identification (RFID).

A geofence can be as simple as a 100-foot circle drawn around a particular point or location. Or by setting up a perimeter around it.

With these in place, you can use this sort of virtual barrier in various ways. For example, tracking how many return customers a particular establishment would have. Or sending alerts about events or promos near a place.

These geofences can function in various ways depending on how they will respond when it meets a certain condition. They come into play with their application on various mobile apps. Even whole systems use geofences to keep track of traffic or the like.

The applications may vary in this case, depending on how the geofences are set up and how the programs connected to them will respond.

Geofencing can play an important role in advertising. It becomes an advancement to an automated process in bringing out ads and promotions towards potential customers in a precise point and locale.

Benefits of Geofencing

Various apps make use of geofencing to use finely tuned features to activate. While other applications for this include setting up reminders or tracking your location as you reach a certain area, this can actually play a crucial role in advertising to customers.

For small businesses, they can set up geofences to bring out their promotions and other messages to appear in push notifications on smartphones and mobile devices. Once a smart device comes into the area, they will receive a push notification that has the promo offer on it.

These promo messages are customizable, allowing the proprietors aiming to find new customers a better reach and control in promoting their business. Compared to hashtags, making use of a geofence for advertising and marketing makes it effortless, skipping what was once an extra step needed to set up a trend.

Small businesses are not the only one that can benefit from using geofencing technology. Notifications get triggered to customers entering a clothing shop to find out about trends and sales offered. A huge building with multiple sections can use geofencing to notify a visitor about which part of a building they are in through notifications.

You can reap greatly with making use of geofencing for your business. Those that used them in advertising and marketing found an increase in traffic and sales because of it.

You can read more about geofencing and geofencing advertising.

How to Do Geofencing on Google Adwords

When using Google Adwords, you can actually set up a geofence with it to help you target your ads at specific locations. The kind of location you are targeting may be two kinds: the physical location where your target users or the location of interest that users would opt to go to.

The first thing that you should do is to set your location settings for your campaign from default to the target locations that you wish to put a geofence on. By doing so, you will be able to set your notifications to that area, allowing your target audience to receive it.

You can finetune this with either a radius geofence or with a polygonal

Adwords makes use of the IP address and the Device Location services to make use of these options, allowing you to set up geofences on key locations where you wish to market and advertise. IP addresses would have computers and other devices set into specific IDs, some of which appear when a WiFi network is present and that’s where they connect.

As for mobile devices, GPS now enters the equation along with Google’s cell ID location database and even with Bluetooth. With these location services active, Google can track and send the advertisements.

How to Do Geofencing on Facebook Ads

As you are setting up your campaign on Facebook, you will reach the Audience portion that will let you input your target locations. Compared to Google that has Polygonal Targeting, Facebook can only do a radial targeting setup.

It is easy to set the location up by dropping the pin on the area you wish to have a reach on. What comes next is choosing which areas to exclude, letting you fine-tune your target location and somehow set up the right parameters for a more accurate reach.

It is possible to achieve with the use of Facebook, letting you make use of a precise placement of local awareness ads.

Make Precision Advertising with Geofencing Today!

What is geofencing? In a nutshell, it’s a marketing strategy to target people in your location.

With precision and accuracy, it offers numerous benefits to advertising with lesser steps compared to hashtags. By knowing the target location you need and how you would set up the perimeters for your geofence, you can be sure that those within reach will be aware of your business.

Did you find this topic helpful? We also offer a variety of topics that you may find helpful and sate your curiosity. You can check out this one to help you with coming up with a brand name that resonates with your customers.

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