Mobile is a challenging marketing channel to master. On average, only 4% of your mobile users will continue to use your app after one year. It’s unique – always at consumer’s arm’s reach, but delicate in that it is very personal and does not tolerate spam.
For this reason, the world of mobile marketing is moving towards more relevant, contextual targeting. Location and time are among the most important elements when it comes to mobile and its context. Mobile is (as its name indicates) always on the move and therefore an inherently location-based channel.
As a result, technologies that tap into location-based marketing, such as geofencing and beacons, are getting more and more popular with businesses.
Geofencing is a technology that enables mobile apps to take advantage of location-based marketing. This technology can help marketers collect information and engage app users as they enter, leave or stay in certain geographical areas, also known as geofences.
A geofence is a virtual fence around a real-world location, like a restaurant or an airport. Geofences can vary in scale and shape – they can be as small as a store or as big as a city; they can be round for more straightforward use cases or polygon-shaped for more complex situations.
There are a lot of different ways a marketer can use geofencing. To simplify, we’ll say that the majority of geofencing use cases boil down to either interacting with app users within a defined area or learning about their offline behaviors from location data.
Here are a few examples of how marketers can get the greatest ROI from geofencing tactics:
Locations services: To locate a user’s device within a geofence, geofencing uses cellular triangulation, WiFi tower triangulation or GPS. Cellular and WiFi are advised for their reliability as GPS-based solutions have proven to be extremely battery-draining.
Format: Geofencing doesn’t require hardware. It comes in the form of a software that can be integrated into a mobile app and managed through an online dashboard or API.
Target Range: Geofencing is more beneficial for large-range outdoor targeting. This usually translates to an area between 50 and 50,000 meters in radius, for example, a shopping mall or a neighborhood.
Privacy: A mobile app using geofencing requires user permission to monitor location and send notifications. If you want to learn more about how to target successfully, check out this guide on How to Ask for Location Permissions in iOS11: Recommended Approaches & 10 Examples.
Geofencing, geotargeting and beacons are all used for location-based marketing. They mainly differ in the way they generate location data and establish a target range. To decide which one is more suitable for your app, you can use the comparison table below.
(state, zip code)
(store aisle, bus stop)
|Medium to large (store, neighborhood)|
|Best for||Browser marketing||Mobile & app marketing||Mobile & app marketing|
|Location data collection||No||Yes||Yes|
|Hardware and maintenance||No||Yes||No|
If you’re interested in employing geofencing technology and want to hit the ground running, here are 5 very practical steps to help you get started:
Geofencing is a profitable tool for connecting with consumers. By developing an app with geofencing technology, you give your business a competitive edge. If done properly, this marketing tactic can build loyalty, generate real-time engagement, and maximize path-to-purchase conversions.