Most consumers today are suffering from fatigue. The time they’re spending online is becoming increasingly filled with digital advertising. With ads coming at them from every direction, many consumers have become annoyed or even numb due to the constant bombardment on social media, through email or the super pesky ones that pop up on their browsers.
To illustrate their growing frustration, all we need to do is look at the social media giant Facebook, and see how they’ve committed to focusing on presenting users with real content that sparks engagement, instead of lining the pocketbooks with brand advertising on the platform.
This doesn’t mean that digital advertisements are dead in the water, but instead, we really need to be looking at the best ways to reach out to consumers. Small businesses have an amazing advantage in doing this, and it’s called geo-fencing.
What Is Geo-fencing?
Geo-fencing is a location-based strategy in which a perimeter is set up around a physical location that serves as a boundary for a marketing zone. When a mobile consumer enters the area, an automatic ad or notification is sent. For example, a car rental company that sends a discount incentive to users entering a certain perimeter around a major airport.
For small businesses that rely on local traffic, geo-fencing can be a great way of getting the attention of local consumers. Whether you’re a new business they’ve been wanting to try, or you presented an offer that was just too good to pass up, geo-fencing gets customers through your door. In fact, 53% of shoppers say that they’ve visited a retailer after receiving a location based notification.
The Role of Geo-fencing in Mobile Focused Digital Advertising
When optimized, geo-fencing can be a powerful tool for building brand awareness and great way to increase engagement with local customers through a location-based marketing strategy. But, for this to work, your customers need to be on the move – with their mobile devices in their hands.
Mobile customers are more likely to stop and shop at retailers near their location. Geo-fencing amplifies this consumer behavior. Here are three ways that geo-fencing is beneficial to your mobile marketing strategy.
- Geo-fencing immediately boosts local sales. With other forms of marketing, the results can be slow to see. For example, you might be waiting around a while to see the results of paid advertising on social media, but geo-fencing is different. Results are faster because you’re connecting to customers when they’re closest to you.
- You get new insights into customer personas. Another great thing about geo-fencing is that the analytics help you learn more about your real local customers. Learn about more than just the general demographics of the area, but the behaviors and shopping patterns of those most interested in your brand, allowing you to personalize offers to your unique clientele.
- You reduce wasteful ad spending. As a small business, every dollar of your marketing budget needs to perform. You simply don’t have the resources to wait around to see if your paid ad campaign was successful enough to justify the costs. Geo-fencing eliminates a big unknown in marketing, and that’s location. With ads that are targeted to location based mobile customers, you see a more immediate, more impressive ROI.
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