How To Set Up A Geo-Fencing Marketing Campaign

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Mobile marketing has taken the world of digital marketing by storm, and one of how this form of marketing is majorly implemented is through geo-fencing. Have you ever received notifications of a nearby shop popping up on your smartphone? This is geo-fencing. 

Geo-fencing is a location-based marketing campaign that allows marketers to target their ads to an audience in the targeted area.

A geo-fence is an imaginary boundary in the real world: it could be a specific city, a zip code, a mileage range, etc. The people who come within the radius of the geo fence receive notifications from your end, which leads to brand awareness and an increase in foot traffic.

Now, you may wonder how geofencing marketing is beneficial. It is beneficial for clients who have location-based services. For instance, when availing of the services of a white label geo fencing platform, they can help you implement a mobile location-based advertising campaign that targets potential customers, leading to the growth of your business.

Let us dig deeper into the topic and understand how it can be implemented for maximum results.

What is geo fencing?

As mentioned in the introduction, geo-fencing is a location-based marketing strategy that helps you connect with smartphone users based on their geographical location. As the name suggests, this form of marketing relies on GPS, Wi-Fi, radio-frequency identification (RFID), and Bluetooth technology to target the audience.  

Geofence marketing

Let us look at an example to understand the concept better. Let's assume that you have a client who is a lawyer and offers their services in a particular area. Logically, their target audience will be from a particular city or location.

A law firm is not going to target the entire state in its marketing campaign. In such situations, a geo-fencing strategy can be very beneficial. It can help identify the target audience within a particular location (geo fence) and send notifications to their smartphones.

Why is geo fencing useful?

Geo-fencing helps you send location-based ads or geo-targeted ads to your audience. Geo-targeted ads can be useful in the following ways:

1. Boost foot traffic: Geo-targeted ads help send notifications about your products or services to a set of audiences in a particular area, which in turn helps increase foot traffic to the actual store. 

2. Real-time crowd engagement: This can be a great way to invite and engage the crowd to an event or show. 

3. Target competitors’ customers: You can draw a geo-fence in your competitor's location so that you can target their customers. 

4. Understand consumer behavior: Geo-fencing helps you understand a consumer’s behavior based on how much time is spent in your store and how they navigate your store. 

How to implement a geo-fencing marketing strategy

You are missing out on tremendous business growth if you are not implementing the right digital marketing strategies. In 2022, mobile-based marketing reached a record of 327 billion US dollars worldwide. Geo-fencing is one such marketing tactic that can generate significant ROI. In light of this, let’s explore how you can implement a geo-fencing marketing strategy.

Research and determine your target audience 

Understanding your target audience is a very important step in geo-fencing. If you don’t know about the demography of your audience, it is impossible to set up location-based virtual fencing.

Understand Your Target Audience

You need to understand who your target audience is and what their interests are to create a target area that drives results not just in numbers but in revenue as well. Moreover, when you understand your audience, you can create ads that target them and turn them into paying customers

Keep your geo fencing boundary small

Think about the following situation: Your target audience consists of individuals within an area of a 25-mile radius, but you have a geo fence of 50 miles. Will that make sense? No right? Therefore, selecting an appropriate geofencing boundary is very important. 

Moreover, it is better to have a small geo-fencing boundary four to five minutes away from your store because it is most effective. Additionally, while setting your geo fence, you also have to think about whether the people in that particular area prefer to walk or drive. If people mostly drive in the area, you set a slightly larger geo-fence. 

Implement an actionable CTA

Nothing is more enticing than a “buy one and get one free” CTA (call to action) in your ads. You are offering them a CTA and a deal that is hard to resist. It is crucial to note that when you are developing your ad campaign, you must ensure that the ads highlight a specific action your customers need to take. 

CTA Buttons that convert

Also, remember that while it is essential that you create ads that are enticing, at the same time, you also need to remember that they shouldn’t appear spammy

Use different targeting techniques

In geo-fencing, you can use numerous targeting strategies. Some of them are mentioned below: 

1. Context targeting: In this strategy, you show an ad relevant to the page's content. For instance, an ad for a local restaurant alongside a news article that talks about the place the restaurant is located in. 

2. Content targeting: This strategy targets the keywords used or the intent of the search. For example, if you type “best Italian restaurants near me,” you will see popup ads of restaurants that serve Italian food in the area.

3. Retargeting: In retargeting, an ad about your products is shown to a potential customer who has previously visited your website. 

4. Dayparting: In this strategy, you show ads to your target audience only at a certain time of the day. For instance, you show an ad for happy hours at your restaurant before the happy hours begin. 

Benefits of geo-fencing

Geo-fencing is slightly more expensive than any traditional form of marketing, but it delivers significant results that can’t be compared to other strategies. The following are a few benefits of this marketing tactic. 

1. Measuring results: Geo-fencing helps measure conversion rates online and offline. Geo-fencing creates conversion zones by creating virtual boundaries for your business. If a prospect visits your store or takes a desirable action after seeing your ads, the prospect is counted in the conversion rate.

It is important that you interpret this data carefully, especially if in-store conversion is more profitable for your business. This location-based marketing tactic ties offline conversion and digital marketing campaigns together. 

2. Geo-fencing helps you with local marketing: Data has shown that people enjoy going to offline stores that are just a few steps away from their current location. It enhances the experience of buying a new thing or signing up for a new experience.

This is why location-based marketing has a lot of potential compared to others. So, when your target audience is within a particular radius of your store, they may walk up to your store after receiving a notification.

3. Get valuable data on consumer behavior: Geo-fencing helps collect data about consumers with high purchasing intent, helping you convert them into paying customers. This strategy helps you deliver a targeted approach that improves your results.

Moreover, geo-targeting can also reveal anonymous location-based customer insights that can help you understand which stores your customers are visiting, which billboards they are noticing, and which roads or areas they frequently visit. This helps you as a marketeer find an ideal placement for billboards and identify competitors.

4. Promotes brand awareness: Many times, your potential customers will pass through your store without even noticing it. However, when they receive a notification from your store, they will start noticing it even in a crowded mall, helping you spread brand awareness among different target audiences.

Geo-fencing marketing best practices

Implementing geofencing marketing is just one step of the process. However, following the best practices while implementing this strategy is equally important. The following are two best practices that every marketer should follow. 

Performance metrics: Driving continuous improvement

1. When it comes to location-based advertising, one of the most important things you have to keep in mind is the privacy of your target audience. While most geofencing advertising uses anonymous data, it is still crucial to be extra careful not to violate the privacy rights of individuals. Moreover, an individual's search history and browsing data should remain private while executing this strategy.  

2. You need relevant KPIs to track the success of your marketing campaign. Metrics such as ad impressions or views, click-through rate (CTR), cost per 1000 impressions (CPM), cost per click (CPC), conversion zone visits, cost per visit, cost per action, and walk-in rate must all be taken into consideration while determining the success. 

Conclusion

Geo-fencing marketing is a great way to boost sales and foot traffic to your store. The credit for its effectiveness can be attributed to the fact that it directly targets the audience based on their location. This develops a feeling of want among them to visit your store in person and convert themselves into paying customers.

So, if you haven’t utilized geofencing for your business yet, you are missing out on many potential customers. Don’t wait until it is too late; contact a service provider today to know more.

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