Businesses that need to target people in a specific location often consider GeoFencing. It is used to create a virtual boundary that enables businesses to reach their target audience through their paid advertising campaigns. Geofencing works in three steps: You target a specific area, a customer enters this location, and your ad is displayed on their mobiles. Geofencing can be a great addition to your existing marketing campaigns that cover customers from a specific location. Geofencing can be the most powerful location-based marketing tool if it’s implemented properly. It is used to target people who have purchased from you or your competitors, those who enter a specific location, or those who work and live in certain areas.

It uses RFID (Radio Frequency Identification), GPS, cellular data, and Wi-Fi to send a message to the user’s device as soon as they enter or exit the virtual boundary established by the business. Businesses track the location of the customer through GPS and Bluetooth and send a customized message that informs the target audience about the latest offers and exciting deals they might be interested in. The alerts can be sent to the target user in multiple ways— the most common ones are in-app notifications, mobile texts, and social media ads.

How does it Help Businesses?

Geofencing uses remote-sensing technology to identify the location of the device and send them an alert for the latest offer at nearby restaurants, shopping malls, and other places. These ads generate the best results, as they send timely notifications to the target, keeping them informed about the latest deals. There is a good chance you will engage your target audience better by filtering your ads for a specific audience or people in certain locations. This ad is targeted to a specific demographic, i.e. people who are actually interested in buying the product.

One of the biggest benefits of geofencing is that it targets the right audience at the right time. With geofencing, you spend your money on the audience that’s highly likely to purchase the advertised products. In addition to that, geofencing gives you insights into your target audience, how your competitors are performing, and which land-based store is doing well in your area. You can use these metrics to improve your product marketing strategies.

Most importantly, this information provides you with detailed insights into user behavior, customer engagement, and other metrics. Geofencing is often used for sending a follow-up message to people who have previously visited your area or are highly likely to buy from you. This information comes in handy when you need to customize your ads and marketing campaigns to certain demographics. Once you collect insights into your audience’s buying behavior, it will be easier to target the right audience and invest your time and budget in the right people.

Thanks to the GIS technology. It has become possible for businesses to establish geofence — a boundary that triggers text messages or social media ads as soon as the targets enter or exit the geofence.