Advertising in a general area can lead to higher customers because they are in close proximity to that store. For example, if a tourist were to visit a local mall, they could receive advertisements to their smart phone for businesses in the area. This would be beneficial because it would tell them what was in the area. There are, however, downfalls of geofencing that you must be aware of in order to ensure that you are using it to the fullest potential.
- Utilizes new technology – As we improve technology every day, marketing and advertising must change to keep up with the improvements. Geofencing advertising is a way that you can utilize the newest smart phone to help your business. Geofencing can be used on computers, tablets, and smart phones.
- Proximity marketing – This is beneficial in geofencing advertising because it can be highly personalized. Because you know where your potential customer is located, you can tailor the message to personalize it to them. This will make the advertisement more meaningful.
- Narrowing your target audience – Being able to narrow your audience will give you better chances at reaching out to your customers in a more direct manner. Being able to connect with them on a more personal level will increase the chances they will shop with you.
- Can be highly effective when the customer is using their phone – While a customer is stationary or walking, they will get the advertisement on their phone. This will ensure that they have seen the ad immediately.
- Users must be on their phone – If the user is not on their phone they will not get the advertisement, even if they are in the area you are sending it. If their phone is in their purse or pocket, they will not be able to capture your advertisement.
- Potential customer must have access to technology – A target for a geofencing advertisement must have access to a phone, tablet, desktop, or computer. Without these digital technologies, you will be unable to reach them.
- Must be in an app or on a web browser – If a potential customer is calling, text messaging, or checking email does not allow for these persons phones to be targeted while they are busy. Similar to local tv advertising, they must be looking at their devices.
- Zones may overlap – Geofencing zones where you want to market may be overlapped with others. This could interfere with the ads you are sending. For example, if you were trying to send a video advertisement in another geofencing zone, they may not receive it.
Geofencing is a great, digital marketing tool. However, it must be used effectively in order make it work the way it’s intended. Understanding the pros and cons of geofencing marketing can make sure you are using it correctly. Geofencing marketing sends out add to particular individuals in a certain area who are on their phones. This can be great for tourists, visitors, or just potential customers in general.