Using GPS or RFID technologies, a location-based marketing strategy called geofencing creates virtual borders around a particular geographic area. Businesses can send tailored advertisements to customers within defined boundaries with geofencing advertising.
Choosing the target market and the precise location where the ads will be delivered is the first step in creating a geofence. For instance, a company might focus on customers in the neighborhood of their store or mall customers. The next stage is establishing a virtual border, or “geofence,” surrounding the target audience and the chosen place.
Businesses can use various technologies and platforms to distribute advertisements to customers inside the geofence after it is set up. For instance, they can use social media sites or mobile apps to distribute adverts to users who have enabled GPS or location capabilities. In addition, beacons, tiny wireless devices that may be positioned in real-world locations, can also be used by businesses to deliver advertisements to nearby customers.
Customers are “triggered” and start viewing the adverts the company has set up when they enter the geofence. In addition, push notifications, in-app advertisements, or even SMS messages may contain advertisements. These advertisements are typically personalized to the consumer’s location and preferences, increasing the likelihood that they will be exciting and relevant.
The potential of geofencing advertising to reach customers at the ideal time and location is one of its main advantages. For instance, a company can use geofencing to target customers close to their store and send them advertisements encouraging them to visit for a meal or to make a purchase.
The ability to target particular demographics is another advantage of geofencing advertising. Businesses can use geofencing, for instance, to target customers according to their age, gender, income, and other demographic details. As a result, there is a greater possibility that advertisements will be seen by those most likely interested in the products or services being advertised.