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Complete Guide to Geofencing Marketing

Have you ever heard of geofencing marketing? As a marketing professional or a business owner you may have heard of this advertising technique.

Understanding what geofencing marketing really is can help you to incorporate it into your outreach strategy.

There are more businesses, non-profits, and other organisations taking a much more targeted approach to their advertising techniques for their business. It was once the option to cast a generic wide net to capture as many marketing streams as possible, and thankfully people are paying attention to the fact that this is not the correct way to market their business.

Not only could you be spending more money than is necessary, but it also shows you are not really paying attention to analytics to know which streams of marketing are working for you. Advanced marketing strategies and tools can help your organisation to tailor your marketing approach. This will help you to deliver your content straight into the hands of those who need it.

One highly effective technique is geofencing marketing. If you haven’t tried it before, you are in the right place. Geofencing marketing isn’t as complicated as it sounds. With the right tools, and the right strategy, it’s actually a pretty simple but extremely effective way to reach your customers – both existing and new ones.

Let’s dive right into what geofencing marketing is and how you can use this particular strategy to promote your brand and track your results. The plus side? You will produce a higher ROI and optimise all of your efforts to create more effective and better future marketing campaigns.

What is Geofencing Marketing?

Geofencing is a location-based type of marketing. You may have heard of geocaching, well geofencing marketing is a type of location-based marketing that targets customers where they are. Geofencing marketing works by drawing a virtual boundary around a specific location. To read more about geofencing, click here.

Once this boundary has been drawn, it then delivers targeted mobile display ads to people who move in and out of that particular region. For example, if you want to target the west side of London, your geofencing marketing location would be there and people moving in and out of the west of London will be able to pick up your targeted adverts.

How Does Geofencing Marketing Work?

To be able to run an effective geofencing marketing campaign, you need to have the right software and strategy in place. All you need is this software and within a few steps you will be launching a successful strategy that will work. Here are some of the ways that you can do that:

Create your target zone

The first thing to do is to draw a digital GPS Boundary around a specific location. Determining the right location is important, so think about your audience first. You can only create your target zone when you create your buyer persona. Who is your audience? Where are they spending the time? Which events do they attend? It is vital that you choose a location where you can guarantee your target audience will spend their time. This way, your budget will be well-placed.

You should consider whether you would use traveller targeting, competitive targeting, addressable targeting – which shows ads to people in a specific neighbourhood. Each of these has their own niche within a niche. Competitor targeting, for example, shows ads to people who visit your main competition and so gives you the chance to poach them.

Develop your message

For your Geofencing strategy to work, you need to develop a strategic message for your advertising content. What is the message you would like to share with your audience? The buyer persona that we mentioned earlier on will matter here. If you can understand the messages that resonate with your audience in those targeted locations, you will be able to give your audience the information they require. Which message would be the one to help them to take action? This is for you to produce. You can even choose whether you want to display your message as a static display, or a video ad. Again, this will depend on your brand and buyer persona.

Drive action

With your message to your audience, you need to add a call to action. This will tell your audience what you want them to do. For example, a box that asks people to input the email address for an email newsletter update is a clear indication of what you would like your audience to do with the page they are on.

You can use Geofencing Marketing to drive either online or in person action.

To drive action, you need to have a better understanding of your business goals. When you know what you want for your business, you will be able to prompt your audience to make the right choice.

Ask your audience to click on a link, or make an online purchase, or you can drive in person actions by asking them to visit your business with a coupon code that you have sent them.

Use your analytics

Analytics and SEO are there for a reason. Monitoring the results of your campaigns by tracking conversions will help you to understand whether your campaign is successful enough. Tracking online conversions to measure the number of purchases will help you to ascertain whether you are spending your marketing budget in the right places. You can even track off-line conversions and this man setting up conversion zones. With Geofencing marketing conversion zones, you are tagging to check the people who see your advert.

Benefits of Geofencing Marketing

As you can see, geofencing advertising is an effective way to target customers based on where they are. You can create strategic messaging based on their needs and wants and use conversion tracking to monitor your success. There are a variety of benefits in this type of marketing strategy.

Boost mobile marketing effectiveness. Ninety-one percent (91%) of adults keep their smartphones within arm’s reach as reported by Forbes. Geofencing marketing taps into mobile marketing by getting your message in front of the right audiences while they are on their phone.

Hypertargeting. Geofencing marketing uses precision targeting to reach customers based on specific criteria. This hyper-targeting allows your message to get in front of your ideal audience, without spending money reaching audiences who are not likely to be interested in your ads.

Collect tangible results and customer data. With geofencing, you can track impressions, clicks, and even offline conversions making it easy for you to collect data, see actual results, and gather information to optimise future campaigns.

Get a high return on investment. Geofencing is cost-effective because it is a focused approach compared to broad and wide location targeting. You pay to reach a specific group of users and get the most out of your ad spend which leads to a high return on investment (ROI). Our customers typically see a 100% return on ad spend.

Geofencing marketing technology constantly evolves to help marketers reach new audiences and connect on a deeper level with their current customers. The benefits of geofencing marketing are numerous, including.

These are the benefits of using geofencing marketing.

Improve your local marketing efforts. Connect with your local community by using area events to market your (or your client’s) business. Services such as Mobile Geofence or Venue Replay can help you access local audience members whom you may want to reach. For example, if you’re interested in expanding your business to a new location, you can reach audience members in that new area to start promoting your brand and raising awareness of your expansion.

Reach your audience members across multiple touchpoints to build brand awareness and loyalty. In the non-profit marketing world, it can take up to 18-20 different touchpoints to reach a new donor for the first time. In the for-profit sector, it takes an average of 8-10 touches before prospective customers feel inclined to make a purchase or enquiry.

No matter the industry, geofencing marketing can help increase the number of touchpoints between your organisation and its prospective audience members by supplementing your direct mail marketing with digital outreach. Connect with prospective audience members or customers using highly relevant and timely ads.

Let’s say your business sells customised business card holders. Your local chamber of commerce is hosting a conference for community business leaders to mingle, share updates, and make connections. Who has a greater use for a business card holder than someone who attends business conferences? By using the Mobile Geofence service, you can use digital ads to promote your business card holders to conference attendees, serving them a highly relevant ad that they’re more likely to actually click.

Access detailed analytics. The geofencing process gives your organisation access to a wealth of audience insights. For instance, with Mobile Geofence/GeoFollow, you can track interactions with your digital ads and measure how many prospects convert from those ads. With Addressable Geofence, you can gather individual data on audience members, such as identifying matched households. These details can help you determine how you will craft your future ad campaigns.

As you know, things are constantly changing in the world of marketing. Your ad campaigns may be partially (or entirely) based on educated guesses or hunches about what your audience prefers and is likely to engage with. With geofencing marketing, you can bring a stronger sense of certainty into your campaign planning by advertising to audience members that you know are more receptive to your content.

Here are the top tips for conducting geofencing marketing effectively.

How To Use Geofencing Marketing Effectively

Now that you understand the benefits of Geofencing marketing, you might be convinced that this could be a great strategy for your business. This means you need to learn what you are getting into so that you can be sure that this investment is correct.

There are plenty of best practices here that will help you to design the most effective marketing strategy for Geofencing. Some of the best practices include:

Get to know your target audience

We cannot impress upon you enough; you need to know who you are targeting for your Geofencing marketing to work. Before you launch any marketing strategy you have to understand exactly who you’re trying to target. Your campaigns are going to go nowhere and will be a waste of money if you target the wrong people every single time.

If you don’t know who your target market is, you will not be able to determine which location they are in and how you can reach them with your Geofencing techniques. It doesn’t matter who you are looking to connect with, you have to be sure to define who your target audience are and when they are located. This way, you can identify the correct locations where you are most likely to find these individuals.

Work on optimising your content

After you targeted your prospects and you’re using Geofencing to do so, you need to make sure that you keep hold of them with high-quality advertisements. Poor ad copy is going to be the best way to turn off your audience, so that means that the ads that you send your Geofencing audience should be designed well and should be compelling. Pick the image that represents your brand and your brand mission and apply this image to your customers.

Make sure that your logo and your colour scheme is recognisable, and don’t forget to make sure that everything is spelt correctly with the correct grammar. Even the slightest mistake can make people think that your business is not as professional as it really is. Think about the way you’re using your digital advertising. Incorporating video ads for your Geofencing campaigns is a fantastic way to pull in your audience.

Track your progress

If you want to track the progress of your Geofencing marketing campaign, you need to take a look at the engagement data. How many people are clicking on your digital ad? How many people are visiting your business website? How many people are using your online store because they saw one of your advertisements and are intrigued about what you can offer? All of these things are really important to your business being able to succeed in this Geofencing marketing campaign.

Determining the success

Determining the success of your Geofencing techniques is important if you want to know that your budget is going to be used the right way. You can create slightly different versions of the same ad and then send them to different members within your target audience in various locations. You can even send this advert for your target audience in the same location, and you can assess how many clicks each advert has had to know which one is the winner. This is one of the most effective ways to improve on your own advertising.

Organise your data

As you gather all of the information on your audience members and your ad campaigns. You need to think about whether your insights are organised and if your team can access them. If you are storing your customer data in one place everybody needs to be aware of it, so make sure that your team is well trained on how to analyse the data that was collected by your Geofencing marketing campaign.

Do you want to ensure that your Geofencing marketing engagement tactics are fresh, innovative, and appeal to your audience members preferences? If you can make sure that you are appealing to your audience members, you will always have people willing to take on your adverts and engage with your message.


Who Needs Geofencing Marketing?

If this is the first time that you are hearing about Geofencing marketing campaigns, you wouldn’t be alone. It’s primarily used by brick-and-mortar businesses in the hospitality, healthcare and retail industries. However, this is not limited to those industries, and pretty much any business can use these amazing methods of targeting in their current marketing plan. As long as you have the budget, and you know what your goals are, you will be able to implement an effective Geofencing marketing campaign.

Have you already assessed your buyer persona? If you know where your audience is located, then Geofencing marketing is not going to be an issue for your business. If you know where your ideal customer spends their time, you could target the location and appeal to them better. You could even drive footfall traffic to your location if you are a brick-and-mortar business, and an online business can drive online sales by utilising click through messaging. One of the best things about Geofencing marketing is that it is flexible in its price. Any business of any size can use it because of the flexibility. With the right strategy this message of marketing can work for any business – big or small.

Geofencing Marketing Strategies

One of the main aims that you should have with your Geofencing marketing strategy, is to produce the highest possible ROI. The return on investment of your Geofencing campaign is going to depend on whether you have a strong strategy to enable you to drive your efforts better. You should never start a campaign without spending time developing the right plan to be able to get the most out of it. Consider which Geofencing marketing strategies can work for your specific audience and their goals, here are a few examples of a couple of strategies that could work best for you:

  • Work on building loyalty. Staying on top of your existing customers is important and less expensive than gaining new customers. When you work on building loyalty from your existing customers, you are going to ensure that your customers want to keep talking about you and want to keep coming back for more of what you can offer. Tagging customers when they come to your store and then delivering the ads that they are looking for will help with your Geofencing marketing campaign. This is going to encourage them to come back repeatedly.
  • Geofence your business. One of the best ways to attract nearby customers and bring more foot traffic to your brick-and-mortar business is to set a Geofence around your business. When customers walk past, they are then targeted with ads that encourage them to visit. Sometimes we walk down the street and do not notice what’s around us. But with the right geofencing adverts, you can target the right audience as they walk past your business and encourage them to come on in.
  • Aim for the competition. One of the best things in your business is to ensure that you talk to your competitors’ customers. Pulling customers from the other side is one of the biggest achievements you could have in your business, so put your adverts in front of people who could be potential customers for your business by Geofencing your competitor locations.

Optimising Geofencing Marketing Campaigns

The last and possibly most crucial point to consider, is that your Geofencing campaign must be optimised. When you run this campaign, you can use your data and results to figure out ways to produce even better results in future Geofencing marketing campaigns. You can learn from your current campaign results and KPI’s to find ways to optimise your campaign to drive better results in future.

When you adjust your messages and design, you can evaluate your ads and different messages to see which ones resonate strongly with audiences. You can optimise a target zone by turning off previous target zones such as the bottom of performance areas and test out brand-new regions. You can identify the times when you convert at the highest rate, and you can also identify whether your Geofencing marketing campaign is working when they perform at the lowest too.

How to Get Started with a Geofencing Marketing

Understanding Geofencing marketing is one thing but implementing it into practice is quite the other. Now that you know what this is and how to create the strategy around this marketing technique, you need to sit down and try to put this plan into action. A strategic Geofencing marketing campaign takes some time to work out but once you can do it, you can easily launch it with the right tools.

Geofencing with Fluid Ads

Fluid Ads Geofencing Ads functionality is a powerful yet simple part of our DIY Ad platform where anyone can target customers in a specific physical location or multiple locations, and this enables smaller brands to deploy many more targeted tactics and campaigns to increase and reach new performance levels.

All a user needs to do is sign into the platform, finalise the design of an ad, then select the Geofencing tab and add the post codes directly to the platform or copy and paste a list of addresses. By clicking on each fenced location, you can adjust the perimeters to exactly where you want them to be.

Once you have your ad, it takes about 5 minutes to go live with a multi-location geofence campaign – check out our Geofencing video to see how easy it is. There is also the option to create dynamic ads by connecting a feed with your locations so you can serve dynamic ads to users that pass through those fences. For more information about Geofencing with Fluid Ads contact one of the team or book a demo.

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