What is Geofencing Marketing?
Geofencing marketing (also known as “geofencing advertising”) is a method of location-based advertising where consumers are targeted based on their location in real-time in relation to a defined radius (or geofence) around a specific location. This is made possible by consumers opting into location-based services on their mobile phone. Geofencing marketing can be used to attract users into a brick-and-mortar location based on variables defined by the advertiser, including distance from location, weather, online and offline behavior, time of day, and more. One method of geofencing marketing (called “Geo-conquesting”) is to attract customers away from competitors as they get close to a competitor’s location.
While geofencing marketing can be a great strategy, it’s important to understand its limitations. For example, a geofence to determine whether a consumer is in a location may not be the most accurate use. In these instances, it is better to use polygons.