Advancements in technologies like Wi-Fi, GPS, radio-frequency identification (RFID) and Bluetooth have enabled the evolution of geofencing: a trend in digital marketing campaigns based on geographic targeting. A BIA/Kelsey study revealed that, in 2017, U.S. companies spent $17.1 billion on location-targeted mobile advertising, and it predicted that spending would increase to $38.7 billion in 2022.
Location-based marketing, aka geofence marketing, allows advertisers to create a virtual perimeter around a real-world location to target audiences within designated areas. Once a virtual perimeter, known as a geofence, is created, a business can target its audience within the geofence via texts, emails, or social media notifications in apps.
For customers with brick-and-mortar locations, a geofence could be created to surround their own spaces — or the location(s) of a competitor. Concert venues and festival groups can utilize geofencing to target potential attendees or promote upcoming events. For those of us in the AV industry, geofencing can be used to target individuals attending trade shows — such as CES, ISE, InfoComm and CEDIA — using a geofence around the convention center.
Online platforms, including Google Ads, Facebook, Instagram and Snapchat, offer geofencing tools. A typical geofence campaign can be successful, depending on the size of the geofence and the duration of the campaign, at prices ranging from $1,000 to $30,000 per month.
Whether your business is a startup or it’s decades old, geofence marketing is an incredibly useful tool you can use to target your audience.
