Geofencing and Its Effect in Marketing

Category: Others/ Misc

Presentation Description

This geofencing mobile technology is leveraged by the market researchers, retailers, CPG companies and advertisers to gain various insights in the market effectiveness.


Presentation Transcript

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Geofencing and Its Effect in Marketing

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Mobile marketing is growing faster than ever and as a result it almost covers the market of desktops. Lot of companies are now integrating in mobile marketing and the amount will most likely increase. Competition in the mobile market is very fierce and location base technology is now becoming the main strategic point of the market. Using this location base technology a company can create unique engagement for each of their customer which is based on their proximity to a shop or area. The worldwide impact in the business is proving its effectiveness to bring more profit.

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This location base marketing is a technology where a company or brand can interact with their customer using a physical location through a mobile device. In this interaction the company or brand mainly sends coupons or any advertisement through email or SMS and the process that execute this called geo-fencing. This geo-fencing mobile technology is a location base service. This technology creates a virtual fence which is also called geo-fence around a physical location such as a store or a building or even a city where a potential customer may visit throughout the day. And once a customer enters the fence, it generates an action prompt by the brands.

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For example say a coffee shop have set a geo-fence of 10 mile perimeter around it. When a customer enters the fence will receive a coupon automatically generated by the fence if the customer has opted in for their service. This technology is leveraged by the market researchers, retailers, CPG companies and advertisers to gain various insights in the market effectiveness and some of them are: Effectiveness in the out of home ads: By setting geo-fence out of home such as a business rival, market researcher can compare the store visitation by the customer with those who are exposed to their ads and those that are not.

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Effectiveness in feedback: A feedback is most effective when the experience is fresh in the customers mind. With the help of geo-fence market researcher can gain an effective feedback from their customer which is very vital for the growth of the business . Monitoring behaviour: Retailers and advertiser can use geo-fence to track store visits, time-on-site and other key metrics that are very vital to their business. Help to analyze the competitor: Setting a geo-fence around a competitor can help the market researcher to analyze their competitor. They can compare the difference in customers’ visitation from one store to another and collect the fact that made the difference.


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