Your Top 5 Geofencing Questions, Answered!

Geofencing – it sounds like a complex marketing term. But it doesn’t have to be difficult to understand or implement. We’ve answered five of the most commonly asked questions  with everything you need to know about this location-based marketing technology.

First of All, What is Geofencing?

Geofencing is an advertising technique designed to target a certain area or virtual perimeter using GPS. When a mobile device enters this “virtual fence,” the technology can be used to automatically trigger display ads, directly to the user’s smartphone via apps.

Say for example you own pet shop and you’re trying to get attention to your new range of dog accessories. You can set up geofences around designated areas that would be relevant to your ideal customers, such as a nearby park where locals walk their dogs. People entering your desired geofence, the park in this case, will begin seeing your ads when they are there and even when they leave (for up to 30 days). This gives your business incredible exposure to the right people at the right time, increasing your walk-in customers.  

Why Should You Use Geofencing?

The way businesses are using technology to advertise is smarter than ever. Your goal is to get the right information in front of the right audience at the right time. To make this happen, geofencing combines two powerful aspects– location and mobile! Typical smartphone users are checking their phones 150 times per day. Imagine if you could get in front of them during this is a significant chunk of their day? That would give you an unbeatable competitive advantage!


How Do You Create a Geofence?

With geofencing technology, a map is used to draw a boundary around the area(s) you want to target such as your own business, a business that compliments yours, a common area like a park or shopping center, or even a specific event.  Using the geofence platform, shapes are created around the areas you wish to target.

 

How Does the Geofence Reach Customers?

When someone enters and leaves your targeted perimeter, a display advertisement is triggered. This is shown to users within the apps that they use most frequently and encourages them to learn about or engage with your business and even come into your store.

For example, your pet store could set up a geofence around a local vet to advertise a particular brand of cat food. The technology can display ads to the people who take their cat in for a check up, encouraging them to visit your store to try a free sample or get a discount on cat food.

What are the Benefits of Using Geofencing Ads?

Geofencing allows you to target your audience based on their proximity to your business and reach consumers when they’re on their smartphones. This helps you get brand awareness for your company from consumers near your business. While prospects may not immediately react to your ads, you are still getting in front of them so that they remember your business next time they’re in the market for your products or services.

Geofencing is an effective way, targeting consumers at a hyperlocal level to increase brand awareness and conversions in your area. Get in touch with us to learn more about geofencing and how you can use this as a part of your digital advertising strategy.  

Nishtha Handa

Nishtha is the Content Marketing Manager at ReachLocal. She has experience in digital marketing, social media management, and content creation for small and medium businesses. She specialises in guiding businesses to improve their social media and digital marketing. When she's not writing about online marketing or researching the latest digital tips and trends, she's planning her next holiday destination, baking a cake or binge watching Netflix.

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