What is Geofencing Marketing and How Does It Work?

Written by onlineacademy

March 11, 2022

what is geofencing marketing

Are you looking for new ways to generate quality leads for your local company this year so that you can boost your sales? If so, geofencing may be exactly what you’re looking for. 

If you’re wondering what is geofencing and how can it help my business, keep reading. Generate local leads and store visits with this innovative marketing tool. 

What Is Geofencing? 

Geofencing marketing is a great type of marketing for those looking to target location-based audiences. This lets you connect with those on smartphones and computers in a specific area using location-based technology. Companies create geofences by setting a designated area and applying an advertisement campaign to that area. It’s a fancy term for targeting a very specific local area with your ads.

When a smartphone or laptop user steps into your geofenced location, they can then be targeted by your ads. These users then get your ads delivered to them in areas such as search and display ads, in-app ads, as well as notifications. You can place geofences in areas such as your competitors, businesses that are associated with yours, or around your own business or service area. The ad can popup when the user is in the area, or it can show on Search engines or websites ONLY when the person is in your targeted area. You may have seen these popup on networks like Waze Ads when you are near a business and you get a notification for a coupon.

You can use these ads to promote your business to make people aware of your products or services. You can also create an ad with a promotion or discount for first-time customers. This can help you widen your customer base while standing out from competitors. 

You can also decide when you want your geofencing ads to appear. You may consider setting these times around days or hours that see more foot traffic to make the most of your ad budget. 

The Main Benefits of Geofencing  

As you can see, geofencing is a great way to bring in new customers, but it’s also a great tool for retaining them. You can boost your customer loyalty by sending them a non-spammy ad and then following up with great service and an amazing product. This is also a great way to track your data and analytics so that you can optimize your marketing strategies. 

Because geofencing runs on analytics, you can use this data to improve or restructure your new ad campaign for the best results. You can track and review your ad impressions as well as your ad conversion rates in real-time. This can help you optimize your ad campaigns, their timing, as well as your geofencing locations. 

Improving your geofencing advertising methods allows you to improve user engagement to refine your audience and receive better results. This can help you figure out what call to action works best with your target audience, leading to increased visits and sales. This makes for a cost-effective marketing method that can deliver great results. 

How Geofencing Can Improve Your Marketing Efforts This Year 

If you’re looking for ways to boost your local sales this year, geofencing can help. Now that you know the answer to “What is geofencing and how can it help my business?”, you can start integrating this strategy into your marketing plan. Generate quality leads and foot traffic with this marketing tool that is easy to optimize for amazing results. 

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