How does Geofencing Advertising Work?

Here in early 2017, I was contacted by three clients asking about mobile ad marketing using geofencing advertising. Apparently there is a massive sales campaign hitting people who are doing Google ads. Unfortunately, none accurately explained how geofencing actually delivers your ad.

What is geofencing? The technology is simply a way to push out notifications on phones in your local “fenced in” region that you determine. Sounds great, right? But it’s not so easy. This isn’t something you can turn on and push to everyone walking by your business.

What Geofencing Marketing Companies don’t tell you:

1. Geofencing requires an app in the App Store and Google Play store

Geofencing only works with apps. It does not relate to Google AdWords ads or Facebook Ads.

2. Geofencing can’t use your corporate-provided app

If your corporate company built your app, you’ll likely be out of luck. This is a big expense and they’ll want to roll it out to all of your fellow franchisees at once. They’ll have to do more app development and design, and won’t want to do it just for you.

3. Nobody cares about your app

One reason jSinger Marketing focuses on web marketing and websites is that people don’t want your app. They have limited space on their phones and don’t want 500 apps, all giving them alerts. Your app has to be purposefully downloaded and kept on phones for Geofencing to bring in business. It’s very hard to get users to download your app. Google and Facebook ads, on the other hand, can be shown to users whether they opt in or not. That said, they differ from Geofencing because they don’t push notifications; they are only seen within other apps and websites.

4. Geofencing is only good for Business to Consumer companies

If you are a restaurant, store or other B-to-C business, Geofencing advertising can work really well. How nice would it be to have a 10% off coupon good for that day only when the person is within 3 blocks of your location? On the other hand, there’s no marketing sense behind a business-to-business app incorporating geofencing.

5. Geofencing advertising is more expensive than Google and Facebook ads

Geofencing also is more costly than local Google and Facebook ads, which charge by click. You can get 1,000 Google views for just a few dollars, whereas Geofencing costs by alert or as a service.

Geofencing can be a great tool in the right scenario. In fact, we at jSinger Marketing think it’s excellent. The problem is jumping upstream through the hoops required to make it work for your business. If you’re interested in Geofencing, or Google or Facebook geo advertising, reach out to jSinger Marketing. We can do a free phone consultation to help you determine the type of local advertising that’s best for your business.