What is geofencing? How do I set up a geofence? How much does geofencing cost?

If you found yourself asking these questions, you’ve come to the right place! We’ve taken the top geofencing FAQs to help you get the answers you need!

Keep reading to get answers to all your questions!

Geofencing FAQs: Everything you need to know

Need answers about geofencing? Check out these FAQs on geofencing:

Q1: What is geofencing?

A1: Geofencing involves creating a virtual perimeter around a real-world location to help you target people interested in your business. It enables you to deliver tailored ads and app notifications to users interested in your business and what you offer.

 

Q2: Who uses geofencing?

A2: When you look at geofencing FAQs, you’ll find a common question is: Who uses geofencing? Hundreds of companies use geofencing to reach people interested in their products or services. Brick-and-mortar, as well as online businesses, can use geofencing.

Some famous examples of companies that use geofencing include the History Channel, North Face, and BMW.

Q3: Why use geofencing?

A3: One of the top geofencing FAQs is why should I use it? Geofencing provides your business with an excellent opportunity to do location-based marketing. You can reach people when they’re near your store or a competitor’s and get them to engage with your business.

There are numerous benefits to geofencing, including:

• Getting to know your audience better: With geofencing, you can collect information about your audience as they enter and exit your geofence. As a result, you better understand who your audience is to create more relevant ads.
• Reaching your audience at critical points: Geofencing enables you to target your audience at the right time to reach people at critical points in the shopping experience. You can drive people into your brick-and-mortar store and get them to buy your products.
• Reaching your audience in real-time: Geofencing enables you to make quick and actionable attempts to get prospects to engage with your business. When you can reach customers in real-time, you can get more of them to visit your business.

Q4: How does geofencing work?

A4: One of the most essential geofencing FAQs we’ll answer next is how does geofencing work?

The first step to geofencing is setting up your virtual fence. Your fence can use the stereotypical circle with a radius, or you can have more control through creating a polygon. Your fence size can vary, too, from being the size of your store to as big as a city.

You can choose to have your fences work off:

• Cellular triangulation
• Wi-Fi triangulation
• GPS

Cellular and Wi-Fi triangulation are the most recommended options because they’re less draining on a user’s battery.

Once you create the fence, users will get added to your audience when they enter the fence. Once added to your audience, you can deliver an ad or notification to the user and get them to visit your business.

You can do geofencing through:

• In-app notifications
• Social media ads
• Search ads
• Display ads

 

 

You can deliver these ads or notifications when someone enters, exits, or stays within your geofence.

Note: For your geofencing to work, people must enable location services. This step can be tricky, as many people don’t enable this setting.

Q5: Where can you use geofencing?

A5: You can use geofencing in multiple scenarios.

The most common place people build a fence is surrounding their business. It’s an easy and effective way to get people to think about visiting your company when they’re near it. You can share a promotional offer or sale to get people into your business and check it out.

Another common use is to put a geofence around your competition.

Placing a geofence around close competition is a great way to get prospects to visit your business instead of your competition. Someone may be more inclined to visit your location if you’re having a sale, but your competition isn’t.

Many companies also use geofencing at events or trade shows related to their industry. This tactic is a great way to reach people interested in what you offer.

Lastly, you can also opt to build a geofence around “hotspots.” For example, if you’re aiming to target college students, you could create a geofence around a local college to reach those students with your promotional offer.

Q6: What can geofencing do for my business?

A6: When you peruse through geofencing FAQs, you may wonder what geofencing can do for your business. How can you use it to help your business?

There are multiple ways to use geofencing to help your business grow, including:

• Increasing foot traffic to your business to earn more customers
• Increasing brand awareness to earn more future sales
• Increasing engagement with your app to build brand loyalty
• Increasing knowledge about your audience to target them better

Not to mention, geofencing is excellent for pulling customers from your competition. You can build a geofence around your competitors and drive customers from their business to your company.

Q7: How big should my geofence radius be?

A7: Next on our list of FAQs on geofencing is how big should my geofence radius be? This question is prevalent with geofencing — geofencing allows you to create small enough fences to wrap around your business and big enough to encompass a city.

It leaves you wondering, what’s the right size for my geofence?

When you’re building your fence, you want to consider your audience and how they’ll get to your “fence.” For example, if you opt to put a fence around your business, you must consider if people walk or drive to get there.

As a rule of thumb, you want to stick to a four-to-five-minute walk or drive.

So, if you’re located in the city, creating a radius that’s a four-to-five-minute walk is best. If you’re in a more suburban area, a four-to-five-minute drive will work best.

Generally, you want to keep your fence close enough to your business that it’s convenient for people to see your ad or notification and visit. If someone is a 15-minute walk away and receives an app notification for a sale, they’re less likely to pop in than someone who’s a three-minute walk away.

Q8: How much does geofencing cost?

A8: The last, and perhaps most important of the geofencing FAQs, is how much does geofencing cost? Geofencing can range in price, costing anywhere from $1000 to $30,000 per month.

You may also incur additional fees, like campaign management, which can be an extra $250 to $1500.

Got answers to all your geofencing FAQs?

We’ve covered some of the FAQs on geofencing that you need to know. Now that you have all your answers, you can start launching your geofencing campaign! But if you need help with geofencing, WebFX can help.

We have a team of over 300 marketing experts ready to help you launch your geofencing campaign. Our team of experts knows how to craft campaigns that drive results — we’ve driven over $2.4 billion in revenue and over 6.3 million leads over the past five years.

Ready to grow your business through geofencing? Contact us online or call us today at 888-601-5359 to speak with a strategist about our geofencing services!