With 75% of smartphone users relying on location for their search results on the internet, it’s no wonder why has already begun using location-based advertising. Geofencing is a hyper-local mobile advertising technology that can help you reach more consumers when they’re out and about. But, what exactly is geofencing, and how you can use it to your advantage? Read our FAQs about geofencing below.
What is Geofencing?
Geofencing is use of a virtual perimeter using Wi-Fi, GPS, or RFID (radio frequency identification) to trigger a response on a mobile device, like targeting consumers for advertising. In advertising, when a mobile device enters this “virtual fence,” the technology can be used to automatically trigger display ads or SMS messages, directly to the user’s smartphone via apps. And, you can define an amount of time, usually up to 30 days, after a prospect enters your geofence to target them with mobile advertisements.
How Does One Create a “Geofence,” Exactly?
With geofencing technology, a map is used to draw a boundary around the area(s) you want to target consumers in, such as your own business, a competitor’s business, a common area like a park or shopping center, or even a specific event. Using the geofence platform, shapes are created around the areas you wish to target to create your geofences.
How Does the GeoFence Reach Your Consumers?
When someone enters and leaves your targeted perimeter, an action is triggered, like an ad that draws consumers to click on your ad or walk into your business.
For example, a donut shop sets up a geofence around a police station to advertise their tempting coffee and donuts to its target consumers. The technology can now display ads to the people in the police station, like a buy one get one free coupon, to encourage them to buy breakfast for the whole station.
What are the Benefits of Using Geofencing Ads?
By using geofencing to advertise your business, you are able to target your audience based on their proximity to your business and reach local consumers when they’re on their smartphones. This helps you spread the name of your company and its services to consumers near your business. While consumers may not initially react to your ads, you are still building your brand with potential customers in a specified area, and they may remember your business next time they’re in the market for your specific products or services.
Why Should I Use Geofencing?
If you just look at the stats, you can see how mobile advertising using geofencing can be beneficial to your business. Americans spend up to 10 hours per day on their phones. This is a very significant chunk of a person’s day that you could be targeting by using geofencing.
Geofencing is an effective way to target consumers at a hyperlocal level and increase brand awareness and conversions in your area. Learn more about geofencing by downloading our free, on-demand webinar 5 Ways to Target Your Audience Online.
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