How to Do Mobile Marketing Geofencing?

With consumers being bombarded with zillions of ads and marketing messages, the onus is on the marketers to innovate in order to gain consumer attention; otherwise, the marketing can just become another annoying noise for consumers. And, to accomplish this task, marketers are not only cooking up quirky messages but also coming up with creative ways to deliver their messages. Using location-based technology is such a new and unique step in marketing.

Location-based Technology and Utilization Ways

It is possible to track a person’s location through GPS, Bluetooth, and beacons, and there are three strategies to leverage this technology for targeting consumers:

1. Geotargeting – Geotargeting includes delivering targeted ads to users depending on their location and interests or intentions.
2. Beaconing – Beaconing includes sending targeted messages and data to nearby mobile devices.
3. Geofencing – Geofencing involves the virtual border that you create around a particular geographic area to deliver targeted messaging.

Geofencing

Geofencing is a powerful location-based service for businesses and marketers. By using an app or software, cellular data, GPS, radio frequency identification (RFID), or Wi-Fi can trigger a targeted action. The targeted action can be an app notification, email, text, or social media advertisement when a mobile device or RFID tag enters or exits a virtual geographic boundary, referred to as a geofence. Geofencing is an excellent way to reach customers in a specific location and increase your business’s visibility.

Geofencing allows companies and businesses with applications to precisely monitor their customers, target them or alert them when a cell phone device enters or exits a specific location. The technology can be boosted significantly by using Bluetooth beacons that are focused on sending special messages to nearby mobile phones.

Marketers use Geofencing to build virtual ‘fences’ around specific geographical locations and deliver targeted messaging. Unlike beacon technology, which triggers apps to perform pre-defined actions, geofencing gives advertisers the opportunity to send more relevant and personalized content, resulting in increased engagement and a better return on investment. Geofences can be as large as a city or as specific as a building.

Moreover, it can take any shape – from round to rectangle-shaped. With geofencing, the possibilities for targeted messaging are endless.

A geofencing example is when a person receives an app notification while passing a local saloon. The app notification tries to lure the prospect by announcing a discount of 30% on hair cut.

Advantages of Geofencing

Whether you run a startup, SMB or a brand, geofencing would aid you to accomplish location-based marketing. With smartphone user numbers predicted to reach 7,690 million by 2027, you cannot afford to sit on the fence. If you are excited to know the advantages of geofencing, here are some important pointers-

Tuned Targeting

With the ability to fine-tune to target consumers (with location-relevant content), you would be able to market to your prospects at the proper time and place. Furthermore, you would be able to engage with your target audience in a more effective way.

Better Conversion-rate and ROI

With fine-tuned targeting of your prospects, your engagement would be exponentially better. With a filtered targetted audience, prospects are more likely to respond to your messages. It would improve your conversion rate and ROI. Hence, you would get the best bang for your buck.

For example, if you run ads on Facebook or Google, you would notice that you have to pay considerably less for a specific city than the entire country. And, if you have a brick-and-mortar location in one city, you cannot practically hope for prospects not belonging to your city to make purchases from your store.

Improved Location Data

The location data you collect, via geofencing, can provide you with critical insights into prospects’ offline behaviour. You may use this data for competitive intelligence, consumer segregation, customization, and retargeting of consumers. Moreover, you can analyze traffic patterns, such as messaging effectiveness and demographics of the populace within the geofencing.

Geofencing allows you to access insightful data metrics, such as target segments that are the most reactive to your marketing messages. These insightful data can be combined with other crucial information, like purchasing information, online activity, and browsing behaviours can further aid you to improve the experience of your customers and further finetune your marketing messages. This may lead you to acquire potential new customers.

Multiple Marketing Methods

Geofencing facilitates numerous interactions, such as ads, emails, in-app content, and push notifications. Also, there are relevant content-based ads that may pop up on apps when a user enters a specific territory.

Mobile Marketing Geofencing

Geofencing is a powerful tool for leveraging the potential of location-based marketing. As of 2022, 6.64 billion people, around 83% of the world’s population, are smartphone users. Mobile marketing has been increasing in tandem to keep up with this growth. Geofencing for marketing has been around for a while and is not just limited to mobile devices. But with the rise of mobile phone users, it has become increasingly popular.

How to Do Mobile Marketing Geofencing

Geofencing is a powerful tool for marketers looking to reach their target audience in specific locations. Here are some of the most common ways it is used in mobile marketing:

1. Brand Apps: Many brands use geofencing to send notifications to app users when they enter or leave a designated area.
2. Web Ads: Search engines, such as Google, can serve location-based ads when a user enters a particular region.
3. Text Messages: A text message can be sent to a mobile user when they get into/out of a specific area.
4. Third-Party Apps: Brands may also use third-party apps, such as coupon apps, (installed on mobile, like the CashKaro app) to send location-based notifications.
5. Social Media Ads: Social media ads (present on social apps on mobile) can also be served to consumers when they come across a geofence.

Mobile Marketing Geofencing Statistics

Here are some astounding stats associated with geofencing mobile marketing-

1. Geofencing mobile marketing is compatible with nearly 92 per cent of smart mobiles.
2. Nearly ninety per cent of mobile messages are generally read within only 90 seconds.
3. People on average check their mobiles around 58 times per day.
4. Geofencing mobile ads have twice the click-through rate in comparison to the industry advantage.
5. Location-based marketing shows 90 per cent positive outcomes among surveyed marketers. Their sales have surged and they have informed increasing consumer engagement.
6. As many as 53 per cent of receivers visit retailers on receipt of a location-based notification.
7. Due to geofencing mobile marketing, more than 75 per cent of users witness personalized experience (ads included).
8. Geofencing marketing campaigns are around 10 times more effective than traditional marketing strategies, such as email marketing.

Sources:

https://www.plotprojects.com/blog/what-is-geofencing/
https://www.smartbugmedia.com/blog/what-is-geofencing