Geofencing make use of the GPS technology on mobile phones to define virtual boundaries within a selected geographic area (also known as a geofence). Each time an event occurs within the defined area, a specific action is automatically triggered. For example, an automatic message can be sent to the mobile phone of any registered user entering or exiting a geofence.
There are multiple practical applications of geofencing including the monitoring of children, employee vehicles, as well as for targeted marketing. This technology is at the heart of many mobile apps and it is commonly being used to send commercial messages (ads) to users entering or leaving a geofence.
How Does Geofencing Work?
Basic geofencing allows mobile applications to track the movement of registered users within a circular geographic area called a geofence.
A geofence is defined by two points: your location and the limit of your "fence." A geofence can extend almost infinitely from your location - it can be as short as a walk across the street, or halfway across the world (though in practice, this may not be ideal).
Geofencing and Mobile Marketing
In this article, we'll focus on the practical application of geofencing in the context of marketing and advertising. A recent study conducted by the National Syndicate of Communication (or SNCD, in French) revealed that messages sent using a geofencing method had resulted in 28% of targeted users to visit a store.
How Geofencing can Help Your Business
Geofencing allows businesses to deliver the right message at the right time to its customers, with unprecedented precision and in real time. Messages can be sent to the smartphone of a user, when he is near or inside a store (provided that he gave his consent). Geofencing can be used to improve web-to-store strategies, allowing retailers to establish a synergy between their physical and virtual store, and also cope with the new shopping habits of users.
The consumer is present in the store both physically and digitally. The buying process decision can be guided, thus limiting the risk of showrooming, which can be very bad for the businesses. Geofencing can also be used to locate a business on a map: e.g. a list of nearby shops is displayed on a map.
3 Geofencing Services
NAO-Campus® is a technology developed by Polestar for indoor geo-tagging along with 3D visualization. The Chongqing firefighters in China use this technology to ensure their safety in hazardous buildings.
iBeacon is a technology developed by Apple that detects the device through Bluetooth. With an activated, users can detect the nearby iBeacons and receive information from them. This innovative technology is a weapon against showrooming.
Fidzup specializes in micro location technology for shopping outlets. Fidzup use a unique sound technology (inaudible to the human ear) to detect nearby mobile devices and send advertising messages.