How Does Geo-Fencing Work for Digital Marketing?
If you’ve been seeing local ads on your smartphone, don’t be surprised. Geofencing technology could be to blame. As consumer groups become more segmented, this new digital advertising strategy is now taking businesses by storm.
Geofencing technology provides an excellent method for businesses to connect with their customers and reach them where they are…literally. So, what is geofencing marketing, and how does it work for digital marketing? Why should you use it? And how can you adopt it to take your marketing to the next level?
What Is Geo-Fencing Marketing?
Also known as geofencing advertising, geo-fencing marketing is location-based marketing used by local businesses to engage their customers. It includes setting up predetermined virtual boundaries that track the entry of anyone with a smartphone to a specific location. When this happens, it causes a notification ad to be sent to that person’s mobile device.
Geo-fencing allows marketers to define specific locations where their ads will be served. It is an important technique to help companies reach nearby clients who are more likely to buy their products or services because of convenience and other attributes. This is more effective and less costly as compared to random mass advertising.
How Does Geofencing Work for Digital Marketing?
Geo-fencing aims to improve customer interactions and create meaningful leads from potential clients. It helps businesses serve ads to key areas, including competitor locations. Companies can leverage this digital marketing strategy by combining technology with customer targeting, along with a sincere personalized message. A sales CRM can help to effectively manage the customers, boost customer retention and boost profit.
Geo-fencing uses technologies such as GPS, IP addresses, Wi-Fi, radio-frequency identification (RFID), and Bluetooth. In summary, geo-fencing consists of the following:
- Establishing a virtual geographic boundary around a set of GPS coordinates
- Setting up a virtual barrier (geofence) within the location
- Triggering an event when a device enters or exits the location so an individual is served an ad
As a company, you can use geo-fencing to tie campaigns to different places in several ways, including:
- IP addresses: Send ads to users signing in to a location’s free Wi-Fi network before they can access the internet.
- Stores: You can set up a geofencing technology in your store so that customers can receive push notifications on their phones when they enter your space.
- Virtual boundaries: You can create ads for potential customers within a short radius of your storefront.
- Zip code: You can serve ads by zip code or street address to reach potential customers on Facebook, Google, or other digital channels.
How to Implement an Effective Geo-fencing Marketing Strategy
Setting up a geofencing marketing campaign may seem challenging, but it’s quite easy to implement. However, you can’t set up random geofences and expect to get conversions. Here are some tips to get the most out of your geofencing marketing strategy:
Tip #1: Find out where Your Potential Customers are and If they’re Likely to Convert
If you set up geo-fencing without considering your target customers, the ads will reach people who have no interest in your products or services. You need to find out where your customers are and where they often go to. Research the demographics of the close populations before you create your geofences.
Tip #2: Create Compelling Ads
No one wants to be spammed with long texts or boring ads. Make sure the content you share is eye-catching to your intended audience.
Tip #3: Pay Attention to Time
Find out when your customers are going to be in your target location. This will help you to deliver appropriate marketing messages to the right audience at the right time. You can leverage mobility data to help you determine when people visit specific locations.
Contact Pink Dog Digital to Get Started with Digital Advertising Campaigns
Pink Dog Digital provides several digital marketing services you can leverage to reach your target audience. We can create campaigns in Google Ads, YouTube, Facebook, Instagram, Twitter, and LinkedIn. However, if you’re interested in targeting a specific demographic, then geofencing is the perfect digital advertising tool for you. We can help you bring your services to others. Call Pink Dog Digital today at (410) 696-3305, or contact us online.