The Power of Location Targeting – Are we finally there?

Over the years we have talked about the great potential and the power of geofencing and how marketing companies can target users based on their exact location. Geofencing has the ability to micro target and promote related and relevant products to consumers, supposedly, when they are most needed.

If you are looking for a more detailed definition of Geofencing and its potential, we have provided an article a while back that can give you a more thorough insight. Marketeers are still struggling to determine the value of Geofencing and whether has progressed over the years. And they are right! Geofencing as we knew it with ports and fences that trigger a users position has not evolved as we would have liked. SMS is still an expensive way of reaching your audience since it requires a constant connection with the carrier and a very often user location refresh. Users can enter a geofence and leave it  without even identified. Or worst, they can receive the offer when they are far gone from the preferred location and/or geofence.

The Location based Advertising era

However, thanks to the smartphone and mobile data advancement over the last couple of years, marketeers have turned to data location aware techniques such as Location Based Service (LBS). The power of locating your exact audience when they access the internet over their phones has given marketeers the ability to advance their geofencing techniques.

Traditionally, a geofence would reach anyone that entered the predefined location giving us little to no knowledge of the audience. Presently,  brands are able to identify their target audience before they reach out to them with a personalized and customized message. Through LBS, marketeers are in position of knowing who to target and with what message to do so. Additionally, geofences are now even more easy to “set up” since data is now-a-days the king. For instance, if a sports company wants to promote their line of football jerseys, they set up a geofence at a stadium location. Knowing people who access webpages and applications from the particular location at a given time, are sports fans, male skew and supporters of the home team who is currently playing, they can customize and personalize their message accordingly encouraging greater conversion rates at the store.

Some might think that such activities raise privacy issues and personal data infringement. That is true when a marketeer aims at locating users without their permission. However, the power of always accessible data and the actions taken by the users such as website visits and application browsing, allows us marketeers to locate our audience according to their performed activities. To locate a user is an action driven by the individual accessing their phone at a specific location at a given time.

The Industry

During the past couple of years, companies implementing Geofencing campaigns shifted from hard-core aggregators and being SMS focused, to mobile advertising and media agencies. Today mobile advertising agencies like Blis Media and are able to effectively target consumers based on their current location, likes, age and personal characteristics. All through push messaging, mobile ads and promotional campaigns taking place on users’ phone without the need of further interaction. Simply by visiting a geofence and interacting with their phones online.

However, numerous location-based advertising companies pop-up on a daily basis. As with mobile advertising, location-based and geofencing companies aim to differentiate themselves from competition by developing platforms and services based on user-centric data and personalization.

Even though geofencing as a term is not as trendy and as heavily used by marketeers lately, it is however employed  on a daily basis by retailers or companies with physical locations. And to answer the question at the beginning; Yes! Gofencing has evolved and it actually now works better than ever.


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