Geofencing is a location based digital marketing tool used to pinpoint specific advertising and/or messaging to consumers based on their location. The technology utilizes GPS or RFID to define a virtual boundary (the fence) around a physical location or area (the geo). Once established, this radius of interest can trigger an action in a cell phone or electronic device. For example, an email, text message, or app notification can be generated and sent to a user’s cell phone when that person enters the defined set of coordinates.
Hyper-targeted, location based marketing is taking personalized marketing to the next level. Geofencing ads are ideal for finding consumers based on their location and serving them hyper-local advertisements or messages. It is a powerful way to engage consumers across various types of online marketing, triggering sales and immediate interaction. Geofencing campaigns can be used in social media campaigns, search engine advertising, display advertising, and retargeting.
Builders can use geofencing to enhance their digital marketing efforts in a variety of ways. Through third-party applications, builder ads or messages are delivered to consumers via that platform. Social media and web ads can also be delivered as a consumer enters a geofenced area. Once the boundary is crossed, the geofencing campaign is triggered and the targeting ad or message is served. For example, a builder could create a geofence area around a competitor’s community and deliver promotional ads or inventory hot sheets to consumers who enter that area. A geofence could be set up around a school zone with ads highlighting the builder as offering homes in that school zone. Builders could also set up geofenced areas around their own communities to deliver promotional or informational ads to consumers as they tour the area.
The fundamental benefit of geofencing is that it provides relevant, timely messaging to people who are in the specific area you have identified as being relevant to your business. By layering in other targeting criteria, you are more likely to engage and convert consumers. Geofencing also makes the most effective use of your budget as you are able to target and reach an audience that is more likely to take action on your message or advertisement.