Geofencing is not your average marketing tool. Keep reading for 5 important benefits of geofencing advertising.
Have you heard of geofencing?
It may sound like a giant fence around the world.
But it’s actually a highly-targeted and location-based marketing solution that offers businesses several important benefits.
And you’ll want to get more familiar with it.
Important Benefits of Geofencing
Although it might sound like something from a science fiction movie, geofencing is really pretty simple. It’s not a physical fence, but a virtual one that’s determined by GPS points.
Once the geofence has been set, any software that uses geofence technology can send alerts or advertisements to people who have entered the territory. You can learn more about the details here.
In the meantime, we’ll take a look at the benefits of using geofencing.
1. Get the Competitive Advantage
With geofencing, you not only target your potential customers but also your competitors’ customers.
You can construct a fence around the area of your local competition. Then when a potential customer enters that area, you can deliver a customized and incentivized ad that will potentially draw them to your business instead.
2. Improve Return on Investment (ROI)
Every marketer will tell you that the conversion rate for relevant ads is much higher than for those that are spread over a wide demographic.
Geofencing ads are highly targeted. Plus, they’re timely. You can send real-time offers to people who are already in the vicinity of your store.
From there, you can analyze the response and effectiveness of these efforts to make educated marketing decisions. This means better ROI.
3. Garner More Engagement
With geofencing, you’re not trying to get people to travel long distances to your company. Instead, you’re delivering ads to people who are already within a short radius of your business.
This sort of location-based marketing is highly personal and significantly improves the likelihood that a local customer will engage with your business.
4. Gather Better Data
Better data leads to more effective insights.
When you use geofencing, you’ll have access to data that will help you determine many things. These include but are not limited to, which stores are performing better, which locations have the potential to expand and which target segment is more approachable.
Improved data will also help you to determine how you market to your potential customers because you’ll be collecting data on their actions. You’ll be privy to information about where they live and shop, as well as how they spend their time.
It’s almost like having your own data scientist.
5. Increase Relevancy
Geofencing allows you to focus on a targeted audience already in proximity to your business or other relevant location you choose.
That means you’ll no longer have to spend a lot of time and money on an overreaching campaign in hopes that you’ll get a little business from it.
With this marketing solution, your ads will be relevant to the demographic.
Want to Target Your Local Demographic?
There are clearly important benefits of geofencing for your business.
And in a world with so much noise and distraction, utilizing this newest location-based marketing solution could be just what you need.
For more great tips, advice, and articles that can help your company, keep checking back with our business blog. We update it regularly.