Benefits of Geofencing

Location-based advertising is taking the digital marketing world by storm. The benefits of geofencing have the potential to increase sales revenue and brand awareness for virtually any brick and mortar business. When assessing your marketing options, here are five ways geofencing could drive more traffic to your business.

1. Precision Audience Targeting

Geofencing allows you to focus on an audience that are in a specifically chosen proximity to your location or another relevant location of your choice. This keeps you from overreaching your campaign to people who are unable to interact with your business, making your ads irrelevant to that demographic.

2. ROI (Return on Investment)

The ads generated and disseminated through geofencing are highly targeted and timely. This means that your customers have the ability or are in the correct mindset to react to them. The conversion rate for relevant ads is much higher than those that are distributed to a wide demographic. Less targeted ads may have their place in creating brand awareness, but the ROI takes much longer.

3. Competitive Advantage

One of the benefits of geofencing is that you can also target the customers of your competitors. A fence can be constructed around the proximity of local competition and once a potential customer enters that fence you can deliver a customized add with an incentive for them to turn around and come to your establishment instead.

4. Increased Engagement

When you advertisement is delivered to the right person at the right time, the stars align and conversions happen. Ads delivered to people within a short radius from your business should alert them of your presence and entice them to walk through the door. They are already in the proximity to do so. Delivering a advertisement around a complementing or competitor business increases the odds that they are in the mindset of looking for what you have. These factors make it much more likely that a customer will engage with your business.

5. Better Data

Getting to know your potential customers is another of the benefits of geofencing. The data collected from your parameters will help determine the actions of your specific demographic. Information such as where they live, shop and how they spend their time can help immensely in determining how you market to them.

Don’t Miss Out on the Benefits of Geofencing

It is easy to see how important geofencing can be to your location-based business. Contact the experts at Tree Ring Digital to build your fence and get clients in the door.