The Benefits of Geofencing


If you’ve ever wondered why, as you’re walking past a shoe store you get an ad from that exact store stating, “buy one pair, get one half off!” the answer to this coincidence is most likely Geofencing. Geofencing uses location-based services to trigger a marketed transaction instead of frequencies (RFID, Wi-Fi, GPS, or cellular data) used by Apps and software. These actions can include text, email, social media advertisement, and more. 

Geofencing has many exciting factors and benefits. The main ones being better targeting, cost-effectiveness, and increased engagement.

Better targeting: hyper-targeting, being able to reach people at the right time and at the same time, is now easier with relevant messaging. Geofencing has made it easier to target people in the same geographic area and filter target criteria, finding consumers more likely to engage with your ad. 

Cost-effectiveness: Before geofencing, some marketers were blind about how well their ads resonated with potential prospects, wasting their marketing spends. Now, using geofencing, these marketers can effectively target the right audience to take action. 

Increased engagement: The more ads you send, the more geofencing helps target those ads to the right place and the right prospects, creating more attention to the ads. Engagement can create not only transactions but build brand awareness as well. 

Today, marketers use geofencing for brand applications, social media, web ads, and more. They’re mixing it with other marketing strategies such as contextual marketing, SEO, and video advertising to get even more benefits. 

In short, companies looking for a cost-effective tool to target audiences and increase engagement have found Geo-fencing to be another great addition to their marketing toolbox.