Geofencing is a targeting technique frequently used in advertising and marketing operations.
Geofencing is a geolocation practice that monitors the movements of objects or people within predefined areas, i.e., geofences.
By exploiting GPS data, this practice makes it possible to receive alerts or send notifications as soon as the virtual boundary of the predefined zone is crossed.
Geofencing is used in many fields. For example, this technology is used on the electronic bracelets worn by some people under house arrest. It can also be used to monitor a fleet of vehicles or a smartphone on loan from a company. If the targeted object leaves the defined geofence zone or enters an unauthorized area, alerts are sent.
Geofencing is an increasingly popular marketing practice. For example, it can be used to set up proximity or SMS marketing campaigns.
For example, a fast-food chain could define a location perimeter (100 meters around the point of sale, for example) and send promotional messages or discount coupons at mealtimes to every smartphone device in the target area.
Stores can also parameterize their actions by sending promotional messages to everyone who enters the store.
Geofencing makes it possible for a business to send different types of messages, such as SMS, push notifications, or advertising via the store’s mobile site or application.
To achieve this, the technology can be based on various channels, such as the GPS function of smartphones, WiFi hotspots, or beacons installed in-store.
This type of advertising targeting is widely used in the restaurant and ready-to-wear sectors. It can be very profitable for the company, as the open rate of an SMS as part of an SMS marketing strategy is around 95%.
To send promotional messages to the smartphones of people passing by in this way, however, a few rules need to be observed. The user must have authorized push notifications or activated Bluetooth, depending on the channel used.
For promotional messages sent via the retailer’s application, the user must also have downloaded it in advance.
