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Geofencing

What is Geofencing?

Geofencing is a technology that allows the advertiser to identify a geographic point and create a virtual fence around that point. It is one of the methods preferred by advertisers due to higher conversion rates.

It is a method of location-based marketing that encircles a specific geographic area virtually with a “fence” using GPS, Wi-Fi, cellular data, or RFID (frequency identification).

Geofencing enables marketers to launch a notification, message, advertisement, SMS, or email.

This technique is frequently used by companies to target customers in particular locations with pertinent and personalized promotions or offers. 

What's the Difference Between Geofencing and Geotargeting?

Geofencing

Geotargeting

Creates a virtual “fence” around a particular geographic area.

Involves targeting customers based on their locations and behaviors.

Works on narrowed-down, more focused areas. Captures users within 200 meters.

Sets a broad geographic boundary (a city, a town, or a country).

Depends on GPS, Wi-Fi, Cellular Data, and so on.

Depends on the user’s IP address.

Used by event agencies, business owners, advertisers, etc.

Used by almost every kind of business

You must take the following actions in order to use geofencing in your marketing campaigns:

Define your target area: Choose the precise location where you want to install your geofence. This might be close to your place of business, a store run by a rival, or a well-known gathering place. 

Set up your triggers: When a user enters or exits the geofenced area, decide what to do. This could involve displaying an advertisement, tracking user behavior, or sending push notifications, in-app messages, SMS, or journeys. 

Create your marketing campaign: Create the marketing initiative, message, offer, or promotion that will be communicated to users as they enter or leave the geofenced area.

Launch your campaign: Launch your campaign and track the results to measure its effectiveness. Make adjustments as necessary to optimize your geofencing strategy. 

Important Statistics

1. According to Markets and Markets, the geofencing market is pegged to reach $1.8 billion by 2023.

2. 72% of customers follow through to make a purchase if a powerful CTA is included in the ad. 

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