GEO-FENCING MARKETING
Lets You Legally Steal Market Share From Competitors
What Is Geofencing Marketing ?
Geofencing marketing is location-based ads where a user's location is recorded via the internet, and advertisements are only shown to people in a specific location target.
Marketing professionals use geofencing to pinpoint specific advertisements based on the target audiences exact location.
The targeted users participate in location targeting when they use applications or programs where they are prompted to enter their location or allow a web service to access their location.
Geofencing
ad campaigns are ideal to find consumers based on exact locations and
serve "hyper-local" advertisements and messages. Geofencing campaigns
can be set up across multiple types of online advertising campaigns,
such as search engine advertising, display advertising, remarketing, and
video advertising.
To See How It Works:
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Growing Your Small Business with Geofencing
Geofencing and Your Small Business
Geofencing is a location-based mobile service that allows businesses to send notifications to smartphone users within a specified geographical area. It is widely utilized as a marketing tool to directly engage potential customers in the area by sending promotions and information straight to the consumer's phone. Because small businesses are typically less well known by consumers than big brand names, geofencing is a particularly useful tool to help grow your business. Here's what you should know about growing your business with geofencing tools.
Undercut Your Competitors Using Geofencing
Geofencing your competitor locations allows you to serve display ads to mobile devices while someone is at the competitor store. If I'm searching for tips on which vitamins to buy while I'm at the pharmacy, and I'm served a coupon for a competitor store, I may click through and opt to purchase my vitamins there for less.
While geofencing is often employed by small businesses, many of the Fortune 500 have found similar success using this underdog approach-particularly when it comes to expanding into new locations.
One such enterprise, Dunkin' Donuts, commonly uses geo-fencing to steal market share from its top competitor, Starbucks. The Massachusetts-based coffee giant couples geofencing with behavioral analytics to target Starbucks customers and convert them with a "switch mechanism" in the form of a mobile coupon campaign.
The result? The campaign saw record-high redemption rates (3.6%) and took a big bite out of Starbucks' local traffic. The campaign was particularly effective at uprooting those who preferred the taste of Dunkin' Donuts, but frequented Starbucks because it was closer to their daily commute. For these customers, a simple incentive-like a dollar off a cup of coffee-was all it took to win back their loyalty and make the slightly longer commute worth it.
First Things First... How Does Geofencing Work?
Geofencing technology draws a virtual perimeter around real-life geographic places. This geographic "fencing" can be custom drawn so that it is around the perimeter of a business or within a preset square mile perimeter of a business or location. This technology uses location-based services to track when someone enters or exits the geographic perimeter you have set for your geofencing campaign. This, in turn, triggers the alert/advertisement to the user's smartphone about your business.
HOW GEOFENCING WORKS:
STEP 1: IDENTIFY TARGET ZONE
- Competitor locations
- Your business (retargeting)
- Places your demographic visit
Example: A clothing company geofences a competitor location to show their ads to their customers.
STEP 2: CROSS REFERENCE GOOGLE MAPS AND DRAW A GEOFENCE
This is the most advanced location based advertising technology based on specific geographic shapes, accuracy down to as small as 25 square foot locations !
STEP 3: CUSTOMERS ENTER GEOFENCED AREA
Geofences can be set to run continuously or set for different times of day or just specific days.
STEP 4: COLLECT MOBILE DEVICE ID
This is where the fun begins! We are able to capture customers Mobile Device ID's once they enter your target geofence.
STEP 5: SERVE ADS TO NEW AUDIENCE
Your ads will be served cross device to this new audience while in the geofence and for up to 30 days after they leave.It Brings In Customers
Geofencing sends ads, sales, and promotions straight to smartphone users within the area of your business. According to statistics from Plotprojects, geofencing increases app usage by over 200%, leading to high customer engagement and an increased probability of making a sale. In addition, geofencing's click-through rate is fifteen times higher than that of normal push notifications. This means that geofencing ads are proven to increase the amount of people who actually click on the promotional notification your business sends them. Because big businesses have the advantage of being well-known to consumers, geofencing can be a huge advantage to small businesses looking to increase consumer awareness of their brand.
It's a Cost Efficient Way to Market
Not only does geofencing provide a business with perfect marketing timing, but it is also incredibly cost efficient advertising. Most small businesses don't have a huge budget for marketing and advertising, yet still need these tools in order to grow their business. Using geofencing allows small businesses to directly compete with big businesses for a fraction of the price. Whatever the budget is, there is a wide range of options that any small business can afford.