March 16, 2021
Geofencing seems to be everywhere today, and why wouldn't it be? We use our smart devices constantly, and for almost everything these days, so it's natural to have GPS-enabled services. Geofencing is an umbrella term for various practices like land-mapping, surveillance, asset protection, and even child watch systems.
Besides security, geofencing also has applications in digital marketing. It lets businesses deliver hyper-localized marketing, and it is one of the most effective tactics for keeping fans engaged. If your company has not tried geofencing, now is the perfect time to do so; here are things you should know about this technology.
To understand how it works in marketing contexts, we must look at its main component, a geofence. Think of a geofence as a virtual boundary; it consists of GPS points surrounding a physical location, creating a space within which companies can serve targeted ads like shops, airports, amusement parks, and neighborhoods.
Geofences can trigger apps to send alerts to mobile phones that cross over the fence and into the specified location. These alerts can contain anything, from advertisements about products and services to offers and promotions. Geofencing sounds like an efficient solution to customer acquisition and retention, but many business owners are still apprehensive about using these. Here are three myths about using this technology and the truths about them.
Business owners have the impression that people dislike it when they have trackers on their apps. Though people do consider some ad trackers intrusive, it is the case all the time. Some people enable location tracking depending on how much they trust the app requesting it.
The rise of digital marketing, video on demand, and product placements have ushered in the decline of people's reliance on disruptive ads. Brands are now savvier about what truly captures people's imaginations. While associated with push notifications, geofencing has a place in this evolving marketing landscape.
Consumers appreciate special offers and discounts, and they welcome alert messages on their phones, as long as you know how often to send these. People are more likely to allow alerts and notifications if you send them strategically; consumers tend to tune out if you send too many.
No matter how large or small, all businesses want to get the most bang for their buck. As a result, they tend to adopt practices when they're 100 percent sure that it will be good for the bottom line. Since businesses have flourished even without geofencing, owners hesitate to invest in this technology. However, not considering its potential is a waste of possible revenue, as this 2018 marketing stunt by Burger King shows.
The fast-food company, known for its tongue-in-cheek tone in ads, created a campaign that enabled them to sell Whopper burgers for a penny if customers used their app within 600 feet of a McDonald's. Called the "Whopper Detour," the campaign resulted in 1.5 million downloads of the Burger King app. It also created 3.3 billion impressions, amounting to $37 million in earned media. Mobile sales were also a big winner, with more than half a million Whoppers redeemed through the promotion.
Geofences are already around us, and they're only going to be more common as technology progresses. If you decide to use geofencing in your marketing, keep in mind that it is not a quick fix. You still need to study your target market, knowing their pain points, and delivering customized brand experiences.
Produce out-of-the-box results when you team up with Oddball Creative. We are a full-service digital marketing agency in Owensboro, KY, helping local business owners gain a foothold in the online marketing landscape. Contact us today, and let's start growing your brand!