What is Geofencing Marketing?

Targeted ads are one of the most common forms of geofencing marketing. For instance, if you use your phone during your holiday, you might see advertisements in the native language of the place you’re visiting. Push notifications are also sometimes used; this will tend to be with apps rather than SMS messaging, though. 

Geofencing marketing is vital as many people use their mobile devices to buy items and surf the web. You need a way to reach your target audience at an ideal time, and geofences are one potential option in doing this. 

You should consider the impact of this form of marketing on: 

• Getting store visits.

• Generating revenue (online and offline).

• Collecting customer data and understanding what audiences engage with.

What types of businesses are using geofencing marketing for advertising? 

Although geofencing marketing is synonymous with small, local businesses, these aren’t the only type of companies that will use this tactic. Bigger companies might also use geofencing for cities and provinces in regions they wish to expand to. 

The company size doesn’t matter too much, but you need to know how to segment your data. It’s important that you target the right demographic if you want to see a return on investment (ROI). 

What are the limitations of geofencing marketing? 

If you’re thinking about potentially using geofencing as part of your marketing strategy, you need to consider both sides of the coin. Below are some essential things to think about that could impact your strategy; consider some ways to tackle these. 

• Targeted Precision: Your ads need to not only serve audiences within specific areas but also be relevant to them. Consider split-testing different creative assets to see what works and what doesn’t. 

• Reporting/Insights: Make sure that you’ve implemented reporting/insight tools that will allow you to measure your campaign effectiveness. Consider which metrics you need to track, such as click-through rates. These should relate to your business goals. 

• Device and Platform Compatibility: Think about whether geofencing marketing makes sense for your target audience; it needs to be available on their devices. 

• Scalability: Consider choosing a couple of regions for your campaigns. You should work within the resources you can allocate. 

• Privacy: Make sure that you comply with local laws and are also not intrusive against users’ wishes. You’ll also need to think about whether customers have allowed tracking on their devices. 

What key aspects contribute to crafting effective geofencing messages and creatives? 

Setting geofences is only one part of the equation; you also need to think about your content creation. For example, your messages should follow other marketing aspects elsewhere; they need to be relevant to your audience. To achieve this, performing background research is vital. 

You must understand your audience in each of these areas: 

• Interests (including hobbies) 

• Demographics (age, gender, ethnicity, income level, etc.) 

• Behaviors (for example, how do they like to shop?) 

Once you have this information, focus on personalizing your messaging. For example, you can offer different deals to different people. You should also make sure that you’re promoting products that a user might be interested in. 

Some other things you need to think about are: 

• Location-Based Technology: You need to choose location-based technology to reach out to your audience. It’s vital that you clearly define the area in which you want to target your ads and understand your target audience’s interests. 

• A/B Testing: Regularly split-test your assets, messaging, offers, etc. – this is important for finding out what your audience responds to. A/B testing is an ongoing process, and despite its name, you can test more than two things simultaneously.

• Staying Informed: Monitor metrics that relate to your campaign, such as conversion rates. Use these to make data-driven decisions; if something works and something else doesn’t, determine why this is the case. 

• Take Your Time: Allocate significant time to build an audience. You’ll need to build over months and years; make sure that you set your goals accordingly. You should also go through your content and tweak it for your audience. Sometimes, you may have to create new pieces of content for specific audiences.

• Respect Privacy: Despite its effectiveness, you also need to make sure that you’re respectful of your customers and their personal space. Use geofencing marketing sparingly, and make sure that it’s relevant. 

Can you provide examples of successful geofencing campaigns? 

Several businesses have utilized geofencing campaigns; learning from them is essential, though you shouldn’t copy them directly. Examples of geofencing campaigns: 

• Starbucks: Uses the app to send notifications when users are close to a store and potentially offer drink discounts. 

• Sephora: Creating an in-app “Store Mode”. 

• Burger King: Used a King Whopper Detour campaign to drive users away from McDonald’s and to their restaurants instead. 

What ethical considerations are involved in geofencing marketing? 

While you can protect privacy when you do geofencing properly, you must still consider the ethical aspects. You must be fully transparent about your data collection and usage; your privacy policy should outline all of this. 

It’s also important that you give users an opt-out and give them more control over your data – besides benefiting your reputation, it’s a legal obligation in some regions. 

Before implementing these types of marketing campaigns, make sure that you understand all of your local privacy laws. You should also research regulatory-compliant compliance software. 

Conclusion

Geofencing marketing is one form of location-oriented marketing, and it’s something you should strongly consider as part of your strategy. While not mandatory, this tactic is frequently implemented by businesses seeking to refine their targeting of potential customers. 

To successfully implement geofencing marketing, you must consider the pros and cons. It’s also important to think about how you segment your audience, such as their interests and demographic information. Moreover, you need to know which metrics to track. 

Besides the marketing aspects, you also need to know about the ethical aspects. Research privacy laws before implementing any campaigns and have a clear privacy policy. It’s also important that users can opt out if they wish.