What is Geofencing?

As the prices of digital advertising continue to increase and consumer groups become more fragmented, marketing firms are turning to geospatial data, data containing locational information, to narrow the scope of their ad placements. This information allows advertisers to construct a geofence, a virtual boundary set around a point or area. When someone with a mobile device crosses this boundary, they are served a corresponding advertisement.

The Benefits of Geofencing

Geofencing allows you to advertise to consumers if and only if they cross the boundary you have predetermined. This means that you can target people who are more likely to become customers; whether that be because of proximity, demographics, brand affinity, etc. The targeted nature of geofencing makes it extremely cost effective as well; you pay a lower price to advertise to a small region, but the selected area will have a much higher concentration of potential customers. As a result, the return on investment for geofencing is much higher.

How Can I Use Geofencing For My Business?

Suppose you own a bookstore that sells textbooks, but you are having a hard time driving traffic into your store. You could set up a geofence at a nearby college campus, perhaps around the building where they host orientation for all incoming students. These students would be served your advertisement as soon as they arrive on campus, and when it comes time to purchase textbooks, they will think of your business first. Geofencing can help you target areas where your ideal customer is most likely to be.

This is just one example of the many ways you can use geofencing to benefit your business. Whether you own a storefront in a shopping center and you use geofencing to advertise a sale you are having as soon as consumers enter the mall, or you manage a restaurant and you set your boundaries around a competitor’s location to undercut some of their customer base, there is a way to tailor geofencing to your business model. If you are interested in learning more, contact us today and set up a consultation.