Geofencing, a location-based advertising tactic, allows advertisers to target an audience by geography on mobile devices. To identify that a mobile device is in that “fence,” an app or software program must relay the phone’s physical location. This typically means the enabling of a device’s GPS. 

When this occurs, those in the designated area may see ads for nearby retailers, restaurants or any other business while visiting apps and websites on their smartphone.

The primary way of targeting for this ad type is by location, not demographics. Thus, the approach for the ad needs to be relevant to where someone is, not who someone is. That changes the messaging or offer to be geo-specific. 

So, how does this create a competitive advantage for advertisers?

Target Users in Competitor Stores

One of the best ways to position geofencing to gain consumer attention away from competitors is to serve ads while consumers are in those locations. When someone enters that store, they can receive ads promoting similar merchandise and how it compares by price and quality. 

You could also relay a special promo to those within this geofence. It could drive consumers back to your customer’s business, leaving the competition behind. 

Push Ads While Shoppers Are In-Store

Consumers can also receive ads while inside the geofence of the actual store. For example, if a shopper is in a store and uses their phone to check a website or app, they could receive ads for the brand. This could incentivize them to take advantage of special offers, which could increase their spending.

Curate the Most Relevant Offers by Geography

If you work with advertisers across different geographies, they likely have different products and customers. For example, some states have multiple climates. A home improvement store wouldn’t want to push ads for lawn mowers in the desert, but another store a few cities away may have a greater need for them.

You can create these “zones” to customize the type of ads one receives in certain areas with geofencing. So, it’s lawn equipment for some and artificial turf for another. Such personalization can drive higher conversions from digital ads.

Retarget Customers

You can also pitch your advertisers on retargeting geofencing. The target is then those who previously visited the geofence. If a shopper interacts with a geofence notification, you can follow up with a retargeting plan across other digital mediums. 

Those consumers already know your advertiser’s brand and may have an intent to purchase. By re-engaging with them through other advertising tactics, you can reinforce messaging and offers. 

Help Advertisers Create a Competitive Advantage with Geofencing

Geofencing should certainly be in the advertising mix that you recommend to customers. When executed well, it can drive big results, which are all trackable and measurable. 

Learn more about geofencing and best practices by reading our post, What Is Geofencing?