What is Geofencing?

Geofencing is a location-based service in which an app or other software uses GPS, RFID, Wi-Fi or cellular data to trigger a pre-programmed action when a mobile device or RFID tag enters or exits a virtual boundary set up around a geographical location, known as a geofence.  

Depending on how a geofence is configured it can prompt mobile push notifications, trigger text messages or alerts, send targeted advertisements on social media, allow tracking on vehicle fleets, disable certain technology or deliver location-based marketing data.

Some geofences are set up to monitor activity in secure areas, allowing management to see alerts when anyone enters or leaves a specific area. Businesses can also use geofencing to monitor employees in the field, automate time cards and keep track of company property.

To provide a geofencing example, if a business has a sale, and they want to let potential customers know, they could set up an automated text message for when that customer enters the geofence.

How Much Does It Cost?

Being that geofencing is a newer strategy to the market, it’s difficult to put an exact price tag on the service. Not to mention, every agency is different and tends to charge different amounts for services.

However, there are a few things that can help you determine how much a geofencing campaign will cost your company.

How much do you want to pay per month for ads?

If you’re opting to use PPC ads for your geofencing campaign, you’ll need to decide how much you’re willing to spend on ads per month.

If you’re targeting keywords that are more specific and long-tail, you’ll likely pay much less than you would if you want to target more general keywords. That’s because there’s a much higher concentration of general keywords, which means more competition and a higher cost-per-click.

A good estimate for monthly ad spend for a geofencing campaign is anywhere from $1000 to upwards of $10,000, depending on your industry and competition.

Are you new to the world of geofencing marketing or do you have some experience? If you’ve worked with the strategy before, we’d love to hear about your tips and experiences!

Source Credit: https://www.cio.com/article/2383123/geofencing-explained.html#:~:text=Geofencing%20is%20a%20location%2Dbased,location%2C%20known%20as%20a%20geofence.

https://www.webfx.com/blog/marketing/how-does-geofencing-technology-work/