How to use Geofencing to Improve Foot Traffic

Feb 28, 2013

Reach More People With Geofencing Advertising

Geofencing is a type of advertising that is designed to reach a local audience. This was once done using magazines, and broadcast media for designated market areas. The goal was to reach an audience within a specific zip code, city, or state. Advertising using geofencing has evolved to the use of technology on mobile devices. The use of mobile technology has changed geofencing in a variety of ways.


Local Reach

Geofencing-advertisingPrior to target advertising provided by location-based applications a consumer was targeted by a business using a zip code or a geographic area. Mobile technology now allows businesses to offer advertising to customers who are in a certain proximity to their physical location. Advertising programs that are used by a business include online sites, such as SovialVibe and Placecast. Alerts can be sent to any customer who has previously registered with the program. This type of local reach works as a majority of people use their mobile device to research and shop for products or services. Users need to download a mobile app or opt in using a text message to receive alerts and offers from local businesses. This is a great way to generate foot traffic for a local business.


Personal Experience

Customer engagement at a personal level can be achieved via geofencing. One reason for this is people typically have a smartphone or mobile device with them for the majority of the day. This is good for an advertiser as customer data is being collected whenever a downloaded app is running. Consumers have the option to set parameters in an app for frequency of alerts by selecting a specific business or an area or location frequently visited. The options available to consumers allow them to determine the types of information that is received from a local business. A higher redemption rate for offers often result when the customer is given more control over information they receive.


Perishable Offers

Offers that are delivered to consumers via a mobile app or even a text message often need to be used in a set amount of time. This can be a specific day, a time range, or other criteria. Mobile geofencing for a specific business means that consumers need various types of enticements. The ability to deliver a wide range of offers to consumers is not available by using traditional forms of advertising, such as newspapers and billboards, as these are not time sensitive for redemption.


Reaching Consumers

The ability of businesses to deliver targeted offers means that foot traffic to a store will increase when the business set different redemption times. A business will typically see more in-store traffic if there is a customer nearby who receives a text message or alert on their mobile device.