How Geofencing Advertising Can Benefit Your Business
March 11, 2021 by
Nearly everyone has a smartphone and carries it with them just about everywhere. This device that we rely on to get places, buy things, plan our day, and communicate with the world is also an ideal tool for targeting ads. Most smartphone users have opted in to location services, which enables them to receive personalized and highly relevant information from brands they like, and products they use and companies they follow.
What is geofencing advertising?
Geofencing advertising is a marketing strategy that enables advertisers to target high intent audiences based on locations they have visited — stores, restaurants, auto dealerships, you name it. When an audience member with opted-in location services enters a geofence — think of it as a virtual boundary around a physical location — they become part of an audience an advertiser can use in a campaign.
Geofencing advertising means your ads are showing up for highly targeted audiences to maximize relevance and likelihood to buy. Consumer segments such as entertainment, food, retail, fitness, and health and beauty use geofencing advertising to reach audiences.
It’s important to note that geofencing ads work whenever users share their location. Currently, 81% of Americans have a smartphone, and 71% are willing to share their location through their smartphone. There’s a great chance that you will be able to reach a good part of your target audience by focusing on geofencing advertisements.
Marketing companies are often trying to find ways to make their advertisements more personalized for consumers. Geofencing advertisements offer that. Creating an ad that is tailored for audiences who have shown real world purchase intent by visiting a specific location allows companies to truly narrow down their message and increase their reach to their audience, and even reach specific audiences they wouldn’t be able to otherwise. eMarketer research shows that there’s an annual 40 percent increase in investment in location-based advertising.
Can geofencing advertising benefit your business?
Geofencing opens doors for you to better understand customer behavior in the specific area you target. Location data helps you build a better and more detailed profile about your target audiences. With geofencing advertising and foot traffic attribution, you can understand how your target audience responds to specific campaigns.
The answer is most likely to be yes if you run ads on behalf of a brick-and-mortar business. With location data and geofencing advertising, your business can precisely and accurately target the customers you’re searching for. Geofencing advertising can help you reach new customers and win market share from the competition.
Ready to build your own geofencing advertising campaigns? Check out our results-driven geofencing marketing platform.