What is Geofencing Marketing?
Translation by Elisavet Kechagia
We are all aware of marketing as an important strategy towards product and service promotion. There are plenty a different types of marketing such as Digital (SEO) marketing, email marketing, content marketing, the list goes on. All of the above have advantages, and when combined they offer a rather powerful strategy, that of Geofencing Marketing.
What is it exactly?
Geofencing Marketing utilizes location knowledge. When a potential client is within a set geographic region such as a neighbourhood, a shopping centre, or a store, they automatically receive brand related content in their portable device (smartphone, tablet). This content usually takes the form of an automated message or an ad, either popping directly to the device, or as a notification in the client’s social network account (Facebook, Instagram, Snapchat, et cetera.).
How it works
Thanks to the extension of GPS and Bluetooth usage in portable devices, technology has advanced greatly. Depending on the user’s preferred settings, this technology is able to share their geographic location and by extension set a geofence, in other words digitally mark an area of interest and collect information and data relevant to the movements and characteristics of those that enter the geofence.
One of the biggest advantages of Geofencing Marketing is that it targets clients within a specific area. It is extremely important for a business of strictly local, small radius activity to invest its funds in the attraction of local clients and not campaigns that aim for bigger geographic coverage and doubtful success.
Data collection is also necessary, since it assists in organizing a better campaign and more successful advertisements. What is noteworthy, is that with the location-based technology utilised in this marketing strategy, one can evaluate the strategy’s success, such as traffic.
Geofencing Marketing can prove to be an asset against competitors. More specifically, the geo-conquesting method has to do primarily with the analysis of the competitive businesses within the radius of interest, such as marking the area close to the competitors. The next step is the detection of the brand’s strongest points and their display through the above-mentioned ways. All these demonstrate in the best way the brand’s excellence, especially if it is the only one in the area that utilises this strategy.
The challenges posed
An issue that is most likely to arise is personal data processing. So as for the General Data Protection Regulation to be complied with (GDPR), the following criteria should be met:
- Informing the user on the collection of their data
- Restriction of data usage to the mentioned use
- Access given to the individual to their personal data
- The right of erasure at any given point
Some companies state however, that a person’s pinned location is often inaccurate and thus might wrongly appear within the geofence.
Even though Geofencing Marketing counts a couple of years in existence, its true value has just begun unravelling, and it is definitely worth being utilised in the interest of one’s business at earliest convenience.