Geofencing technology could be the reason why you’re so amazed by local ads lately. Geofencing Competitors, a popular marketing strategy, has taken businesses to new heights.

Geofencing technology allows businesses to target qualified customers by creating virtual boundaries. Customers can then activate push notifications and ads for that business whenever they cross the boundary. Potential customers are encouraged to visit the storefront.

It sounds fantastic, but it is a reality. What does it mean?

This article will walk you through the world of geofencing technology and how it can benefit your business.

What’s geofencing technology?

Geofencing uses GPS signals to determine when customers cross a boundary. 

Geofencing enables businesses to target customers by determining their location relative to their business. This all depends on the business.

One example of geofencing could be used to notify customers about a sale. A geofencing example could be used to notify potential customers of a sale.

What’s a Geofence?

Geofencing allows businesses to target specific audiences. The boundary is created by GPS technology.

It’s easiest to imagine it as a fence because that’s what it looks like on a GPS.

Geofencing is a way to target specific audiences. 

Geofencing lets you target your most qualified audience with advertisements for your products and services. 

Geofencing with push notifications

Let’s say you open a boutique for women. You also created an app that allows you to send push notifications to your phone whenever you are nearby. Push notifications can be received even if the app is not opened.

When you advertise a sale on jeans, and someone walks past your app to tell you about it, a push notification is sent to them.

Example geofencing with text messages

Targeting customers with text messages is another way to reach them. This could be used to remind them of a sale or new products.

Geofencing with PPC ads

A typical PPC campaign is a great way to reach your target customers. The ads can only be seen by potential customers who cross into one of the geofences.

Let’s say you own a seafood restaurant. You target “crab legs”, so your ads will include that keyword. 

Geofencing technology allows you to place a box in a radius of 3 blocks around your restaurant. However, it doesn’t guarantee customers will see your ads if certain keywords are included in your campaign.

First, decide how much you will pay to click on an advertisement that targets a specific keyword. Your ad will not appear to the public if it is lower than your competitors’ ads. If your competitors are more competitive for the keyword, this is possible.

Does geofencing work well?

You can be precise up to a few hundred meters in rural areas with Wi-Fi. 

How much is geofencing technology?

Many businesses want to try this new marketing strategy. However, they often ask the question “How much does it cost?” Geofencing is still relatively new and many businesses are eager to adopt it. However, one of their first questions is “How much does it cost?”

You can help to determine the cost of a geofencing campaign in your company.

What do YOU think the monthly advertising cost is?

Determine how much you can afford to spend on PPC ads for geofencing campaigns. 

This is due to more competition for keywords. The average monthly advertising expenditure for geofencing campaigns ranges from $1000 to $10,000 depending on the industry.

In which locations can you operate your business?

How many locations your business has can impact the cost of geofencing. If you have five locations to geofence, you’ll need to pay per location.

Campaigns are usually less expensive if there are fewer locations.

Do you need geofencing services?

Kobe Digital can be a great resource for geofencing services that will help your business.

Contact us online or call to get more information!