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Everything You Need to Know About Geofencing

What comes to your mind when you hear the word geofencing? Maybe it's thinking about the fence in your backyard. In that case, you're actually pretty close. Let’s break it down.

The Greek prefix “geo” translates to earth, usually in the sense of ground or land. “Fencing” means enclosure. Have you ever driven past a store, such as Walmart or Target, then all of a sudden receive a notification about clearance items and upcoming sales? Well, that's no coincidence.

What is Geofencing?

Geofencing is a location-based service which apps or software use. It works with radio frequency identification (RFID), Wi-Fi, GPS, or cellular data to trigger a targeted marketing action when a mobile device enters or exits a virtual geographic boundary, or a "geofence". These marketing actions can range from texts to emails to in-app notifications.User Looking At Phone Ad for Free Donut

Basically, geofencing is delivering content to someone who appears at a certain location you've mapped out through targeting. Have you ever received an ad for Dunkin Donuts while navigating to your next destination on Waze? Coincidentally, the Dunkin in the ad was along the route to your next stop. This is an example of well-done geofencing. 

Our locations can easily be picked up by Bluetooth or beacons whenever we have our phones on hand. The main focus of geofencing is to plant targeted messages in front of the right customers at the right time.

A pillar of inbound marketing is reaching your audience with customized, relevant messaging. By adding a specific location to your ads, you're likely to drive more store visits and timely clicks to content. Let's dive into how to use this in your marketing.

When to Use a Geofencing Strategy

Before deciding it's in your best interest to use a geofencing strategy, you’ll want to understand your target demographic. Understanding who your target audience is will help you pinpoint the locations where they're most likely to be. It's also key to helping you craft language that will appeal to them for highly targeted, location-based marketing. 

Geofencing is a great strategy to drive foot traffic to your business. When considering if a geofencing strategy is for you, review these benefits:

  • Timely content delivery: When running a new promotion, geofencing marketing campaigns make it easier to notify your local customers and quickly get them in the door to take advantage of limited-time offers. 
  • Data-gathering efforts: When targeting marketing efforts to a specific geofenced area, you are able to gather more detailed data from customers than you would with a broader digital marketing campaign. When a customer visits a business in response to a geofenced advertisement, it's easier to gather data about visit duration, ROI, and message effectiveness.
  • Deliver personalized experiences: The information you collect from geofence campaigns can help your team develop content and promotions that best aligns with your target audience’s needs, interests, goals, and preferences.

There are tangible benefits to using geofencing marketing strategies when you invest in the right ways.

Boosting Local Traffic Through Geo-Fencing

Large corporations benefit from Search Engine Optimization (SEO) as they rank higher in a search due to extensive links, higher domain authority, and consistent traffic. Small businesses can sometimes struggle to find a voice online when competing with these larger companies. It can be extremely difficult to rank for keywords that apply to other businesses with better SEO performance.

Many businesses overlook the importance of local SEO. Appearing on Google's Local 3-pack is a great way to drive traffic to your website for customers looking for your product and services. Google takes location into account to help drive relevant results for those searching. 

Say you're looking to purchase new workout gear. If you search only "workout gear", options like Amazon, Nike, and other large corporations will rank at the top of your search. If you search, "workout gear in Northern Liberties", small businesses have a better chance of standing out when they have optimized themselves by using keywords related to their location.

Woman Online Shopping On Her Phone with a Credit CardGeofencing is another way to take advantage of local SEO. Your business can set up unique promotions when a customer shops at a specific store within the geofence. Custom notifications encourage customers to head to a local business or shop online.

For example, you can notify customers that you have a limited-time sale going on now. If your business offers loyalty rewards, you could offer increased loyalty incentives if they are within your targeted area. This is a great method for stores in shopping centers that receive lots of foot traffic.

Geofencing is often underused in this area of business because small business owners often think it is difficult to set up and time-consuming. The truth is, geofencing promotions can be set up in no time by anyone with little to no technical experience.

What Kind of Facebook Campaign Objective Should I Use With Geofencing?

While Facebook Ads allow you to choose target-based information like demographics and location, geofencing opens up a new and more detailed road to targeting customers. The best Facebook campaign objective to use with geofencing is conversion. Conversions encourage people to take a specific action and promote your brick and mortar business to those nearby.

Limitations with Facebook Geofencing

Of course, there is no “one size fits all” when it comes to geofencing on Facebook. Unfortunately, you cannot draw polygon fences on Facebook. Instead, you have to drop a pin on your exact location that meets targeting parameters.

You can select a city, DMA, or specific address to target, and also exclude areas within that location if applicable. In addition you can determine if those viewing your ad live in the location, are visiting the location, recently were in the location, or simply target anyone at all in the location (default).

MDM Can Help With Geofencing Campaigns

Not only can you draw a polygon geofence around your own business, but also around your competitor’s storefront too. Despite a pandemic, people are slowly beginning to get out of their homes and back into their favorite stores. We want to help you target those people who didn’t know they needed you.

Mobile marketing has been growing by leaps and bounds due to the increase in mobile phone usage over the last decade. Social media is no longer enough. Now is the time to integrate geofencing into your strategy as it’s been proven to boost sales, engagement, and loyal customers.  

Understanding the scope of your business helps you make good marketing decisions. If you’re ready to start your social media marketing journey, visit our page to learn more.

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