If there’s one thing that the past year has taught us, it’s that technology has become more embedded in daily life than ever before. Our article The Best Work From Home Tools 2020 is a great example of this – technology has progressed to the point that we can work comfortably and efficiently from home with the right tools.
Greater advances in technology have led to a number of changes in other parts of society as well. Take industries like marketing, for example. Digital marketing has exploded since the invention of the Internet, and it’s only getting more and more sophisticated today. Below, we’ll talk a little bit about how marketing has been transformed by technology — specifically through location-based marketing, also known as geofencing.
Why does location matter?
One of the greatest advantages of digital marketing is that it’s something that can be done anywhere. No longer do companies have to think about where to invest in advertisements or billboards— now, algorithms determine how and when to send the most effective promotional materials straight to users’ mobile phones and laptops. In a world that’s quickly going online, why does location still matter?
The answer is simple. B2B marketing publication Twice explains it succinctly: in marketing, what matters is messaging that lands at the right place and the right time. In that case, sometimes the prime opportunity for showing a customer an ad is dependent on where your customer is. That’s where geofencing comes in.
What is geofencing?
Triadex Services describes geofencing as a new technology that allows businesses to send out ads according to a certain trigger. This trigger is linked to location, thus the name. Location info from customers’ mobile devices can be used to prompt a response from a campaign.
For example, when a customer enters your store or a competitors’ location, they immediately get sent your banner ads on popular websites like CNN, ESPN, and more. Because recipients of the ad are likely about to make a purchase, this makes them perfectly primed to receive your message.
Why should businesses use geofencing?
Geofencing presents a ton of advantages for businesses large and small. Marketing Land reports that geofencing is tied to consumer behavior, meaning that not only does it allow you to send out your ads at the right time, but it can also help you better understand consumer habits. Research also shows that 72% of customers will respond to an ad when they’re near or around a retailer’s location, which means huge returns for businesses.
According to a Location-Based Marketing Report sponsored by Factual, U.S. companies spent $17.1 billion on location-targeted mobile marketing in 2017 alone. Location-based marketing techniques like geofencing present an essential opportunity for businesses to more effectively market to their customers.
As the number of smartphone users in the world continues to rise, mobile marketing and geofencing become more essential for marketers and businesses alike. There are over 3 billion smartphone users in the world, and that number is only going to climb. Within a few short years, geofencing may become one of the go-to marketing techniques for companies all over the world— and all because of growth in technology.