Mobile marketing trends: Geofencing and Proximity marketing

Why this trend is so important for new marketing strategies? And what does combining Geofencing, Beacons and IoT mean for companies?

Using Geofencing and Beacons is becoming increasingly popular in the field of mobile marketing. This technology depends on smartphones which, as you know, are part of modern everyday life. Let’s look at the past. The current 20-30-year-olds grew up in a time when the mobile phone industry was born. Fifteen years ago no one knew how much smartphones would change our lives in such a short time. However, this fact goes beyond smartphones. Experts predict that by 2020 there will be over 30 billion devices connected to each other. This network of devices is called Internet of Things, which can affect our lives even more. In this entry, we will look at IoT from a different point of view – referring to the technologies of Geofencing and Beacons.

What is “Geofencing”?

Geofencing is literally a virtual fence that allows you to register objects (such as smartphones and smartwatches) or people within a previously selected area. This allows you to recognize when the device enters and exits this area. This technology depends largely on smartphones, because geofencing will register users by using location services on their phones. As soon as the user enters a specific area, certain actions can be started, such as push, email or SMS notifications, so that smartphones can be routed and contacted for marketing purposes.

What are “Beacons”?

Beacons are an alternative to Geofencingu, which works better in an area where more accuracy is important or if we want to observe what is happening in closed rooms. These transmitters are able to communicate with Bluetooth-enabled devices in the range from 2 m to 70 m. A beacon device is equipped with an independent source of energy so that we are free to place it literally anywhere. The restriction is the need to have the consent of the owner of the premises. The battery of such a device can guarantee up to three years of full functionality.

It is these devices that define the zones in which we want the user to receive a notification or so we can receive information about users appearance in the area.

Geofencing, Beacons and IoT merger

Beacons and geofencing have the same goal because both technologies are used to send push notifications to a specific target group or to collect presence information. The idea of ​​Beacons was developed on the basis of geofencing technology, but they differ in their functioning. Beacon signals are more accurate and can only be used to a lesser extent. Nevertheless, Geofencing and Beacon can be used simultaneously by the same seller as a marketing tool.

Let’s look at another example: Business A is a sportswear store that uses Geofencing / Beacons technology. Business B is another sports shop in the same city. Theoretically, it is possible that the consumer will be detected in the geofencing zone while passing through store B, and two hours later through shop A. When Beacony detects this type of behavior, the consumer receives a push notification. In this way, the owner of company A not only knows when a potential customer enters and leaves the target area, but also which stores have gone through at this time. Therefore, the combination of geofencing and beacons can be extremely effective for the company. There is also the possibility to download the advertising ID of this person, thanks to which he will be able to reach that customer at a later time using online advertising (social media, mobile banner campaigns).

Digitization using new technologies

Nowadays it is becoming more and more difficult for marketers to create a competitive advantage when it comes to digital marketing. Companies need to constantly adapt and innovate to meet consumers’ needs and behaviors. Geofencing and beacons can help create a stronger strategy to reach the right target group.

Their use is mainly used for location-based marketing. Both technologies are a huge potential for mobile marketers. It is important, however, to take into account the legal aspects with regard to the security of personal data and privacy.

The use of this type of technology can strengthen B2C marketing and can be used as a tool to make strategic decisions. The digital world develops and improves every day. Imagine how innovative our purchases and marketing strategies will be in 10 years…