Introduction
More and more businesses are looking for ways to reach their target audience exactly where they are. This is where geofencing advertising comes into play, an innovative form of localised marketing that allows you to deliver relevant content to individuals as they move around a specific area[1][2]. Imagine your shop is located on a busy street, but only a few passers-by become customers. Geofencing advertising uses digital „fences“ to reach exactly those people who are in the immediate vicinity[1][2]. The result: greater relevance of your message and the opportunity to activate the immediate neighbourhood.
How does geofencing advertising work?
Geofencing advertising is based on the idea of defining a virtual area around a specific location. Technologies such as GPS, WLAN or Bluetooth are used to recognise the movements of mobile devices[1][2]. As soon as a person enters or leaves this area, an action can be triggered in real time - such as sending a push message, an email or a voucher directly to a mobile phone[2][4]. The implementation is extremely simple and can be customised, for example for individual shops, trade fairs or major events[1].
This technology is now used in a wide variety of sectors. For example, local retailers often report that they have been able to significantly increase awareness at the point of sale through targeted campaigns with geofencing advertising. Event organisers also rely on this method to provide visitors with relevant information or special promotions in the vicinity of their locations. Service providers in the catering sector also benefit, for example by sending lunch offers to office workers in the vicinity.
Geofencing advertising in practice: three examples from the industry
A fashion shop in the centre of a large city sets up a virtual fence around its branch. When a passer-by enters this area, they immediately receive a push message with an exclusive early bird discount on the current range. The shop's capacity utilisation increases and customer numbers rise noticeably.
Geofencing advertising is also particularly effective in the trade fair environment. A company uses targeted messages at a trade fair to invite visitors to its stand. Anyone who is in the vicinity is given a tip about a free consultation - and many spontaneously take up the offer.
Geofencing advertising is also playing an increasingly important role in tourism. For example, a tourist attraction activates a voucher for the online shop as soon as visitors are near the checkout. Many use the offer on site - satisfaction increases and local added value is enhanced.
Actionable tips for successful geofencing campaigns
In order for geofencing advertising to be optimally effective, companies should consider a few aspects. Make sure that your target group has activated location sharing in the respective app, as this is the only way to ensure a targeted approach[4]. Choosing the right time is crucial - if you offer a coffee in the morning, you should focus your campaigns on the time between 7am and 10am.
The design of the message must be clear, short and valuable. A convincing call-to-action increases the likelihood that interested parties will respond directly. And finally, continuous monitoring pays off in order to measure success and readjust the campaigns. Many companies use the data obtained to better understand their target groups and to make targeted subsequent deliveries.
Successfully implementing geofencing advertising together with experts
BEST PRACTICE with one customer (name hidden due to NDA contract) A medium-sized company in the food retail sector wanted to increase the attractiveness of its market stalls. Together with iROI-Coaching, a concept was developed that focussed geofencing advertising on the city's central weekly markets. Interested parties received a push notification with seasonal offers and a digital discount extra as they approached. The response was so positive that several locations were able to significantly increase sales compared to the previous year and target new customer groups.
Another example shows how an international hotel chain in the city centre used geofencing advertising to precisely target hiking maps and last-minute offers to tourists. The demand for bookings increased because the relevance of the message was particularly high.
Geofencing advertising is also being used in the education sector. A modern language school set up virtual zones in several neighbourhoods to advertise suitable courses. Parents who were in the vicinity of the school immediately received an invitation for a trial lesson.
My analysis
Geofencing advertising is no longer a niche instrument, but a central component of successful local communication[7][8]. The technology makes it possible to place content exactly where it has the greatest impact - directly on site. Companies that use this channel in a targeted and creative way not only reach more people, but also create more added value and customer loyalty.
If you plan carefully from the outset and keep an eye on your target group, you can use geofencing advertising to create tangible momentum. iROI coaching helps you to strategically align your projects and make the most of the opportunities offered by modern, location-based communication.
Further links from the text above:
Geofencing marketing: the guide to local customer acquisition
Geofencing marketing: localised advertising for mobile users
What is Geofencing Marketing and How Does it Work?
Geofencing as a marketing tool - Ryte Magazine
What is geofencing and how does it work? - Velco
What is geofencing marketing? - Neil Patel
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