Next in Location-Based Advertising: Geofencing

Geo-fencing Location Based Advertising“If Foursquare and Groupon had a child, it would look a lot like geofencing,” says Ann Sherber in her DigiDay Blog.

Geofencing is essentially an invisible fence set up around a location where users who have already opted in can receive special deals and coupons via text message when they enter said location. A huge advantage to geofencing over other location-based services is that people don’t need to have Smartphones. The technology uses the network’s cell phone tower rather than a smartphone app. Marketers are getting ever-closer to reaching consumers at the point of sale and meeting needs with immediate content and information.

Some consumers are a little nervous, not liking the idea of feeling “watched” or “tracked” where they’re going. Companies who have started testing this technology are treading lightly because of these concerns. As I mentioned, this is an “opt-in” service so far, and most companies are limiting the number of texts a consumer can receive per month.

I’ll be in NYC, one of the test market cities, in a few weeks, so it might be something fun to test out! If the texts are┬árelevant, based on preferences I’ve selected, I see how this would be a helpful service. Who doesn’t like coupons? Especially when you’re already out somewhere?

 

 

LWT is a full-service Interactive // Advertising // Social // Media // Content agency located in Montgomery, AL and concentrating on destination marketing for tourism, real estate and retail clients. For more, visit lwtconnect.com

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