What is Out of Home (OOH) Geofencing?

What is Out of Home (OOH) Geofencing?

CTR for ad campaigns with geofencing are up to 70% higher than traditional campaigns. Here's why.

December 10, 2021

In our fast-paced digital world, there are endless options of Netflix shows to watch and social media apps to scroll. On those platforms are a load of ads — all with brands trying to make themselves stand out, connect with users and grab their attention.

In a world where technology gives people constant access to the internet in the palm of their hands, it’s crucial for brands to find ways to leverage that to capture audiences’ attention and engage them with unique experiences.

Successful brands may already have a successful profile of their target customer and be connected to them through app notifications and targeted socials. But how can you go a step further to connect with consumers?

One way brands can leverage technology to connect with consumers is through out of home (OOH) geofencing.

What is Geofencing?

Geofencing is a service that uses predetermined geographic locations to complete an action. These geofences encompass a location-specific area.

When a user enters that area, they may receive:

  • A notification from an app
  • Targeted advertisements on social media or another site
  • A text message or alert

The user receives an action based on their:

Geofencing can be used for a wide variety of reasons — including for marketing, sending emergency alerts and notifications in a geographic location or helping notify employees when to clock in and out of work.

Out of Home (OOH) Marketing

Out of home marketing is — as it sounds — a form of marketing that appeals to audiences outside their homes when they’re out and about in the world. 

OOH marketing includes things like:

  • Billboards (print and digital)
  • Subway and bus advertisements
  • Flyers

This kind of marketing appeals to consumers anywhere they’re not home — whether it’s on the highway on their morning commute to work, on a sign in a store while they’re shopping for groceries or on a digital display on the street as they’re walking by.

OOH Geofencing

Out of home (OOH) geofencing combines the two to create an encompassing digitalized marketing strategy to connect with users in specific, predetermined regions.

Brands may send notifications when consumers are near a store or other area as determined by marketers — even including areas attached to moving objects such as city buses that display ads. This targeted advertising based on location makes consumers more likely to click and engage — turning further sales.

Benefits of Geofencing

Click-through rates (CTR) have been as much as 70% higher with geofencing campaigns compared to standard ads — showing better conversion potential for businesses.

Media companies can leverage geofencing to give more contextual advertising, based on physical locations and when consumers are around them — rather than sending random ads when a consumer is at an undetermined location.

Increased Strategizing

By utilizing location services and capitalizing on the constant connectivity users have with technology, brands can be more strategic about when and how they target consumers and connect with them through ad campaigns. It can capitalize on consumers being within proximity of a storefront and having a higher likelihood of purchasing.

For example, if a consumer comes within a geofence set around a store, the company can send a notification to their smartphone — notifying them of sales, deals, or offering other information that may prompt them to take action.

It also takes away brands unnecessarily sending advertisements when consumers may be at home (or elsewhere), and busy doing other things  — when they’re not actively interested in shopping.

Build and Maintain Ongoing Relationships

Geofencing can not only be leveraged to increase customer engagement to convert them into sales — but they can also use it to further connect with consumers and build ongoing relationships.

Rather than sending a shot in the dark with digital billboards that millions of people in a bustling city will pass by, brand marketers can appeal to a select number that already have some level of investment in the brand — whether it’s through their app, a third-party application or a local WiFi network.

It’s another way brands can utilize technology to keep constant connectivity and boost their campaigns.

How Can Media Agencies Enhance OOH Campaigns with Geofencing?

Geofencing marketing allows brands to connect with consumers in a unique way that’s not limited to the confines of traditional OOH advertising.

By pushing notifications or information when a consumer enters a specific location, rather than sending them at random, companies can more effectively appeal to consumers at times (and places) when they’re more likely to engage — ultimately boosting the bottom line.

For example, companies may trigger alerts when a user who has location services enabled on the brand’s app enters the geofence around a competitor’s store.

Dunkin’ Donuts did this with geofences around competitor’s shops and sent consumers a coupon when they were near one. The brand saw a 36% action rate on the coupon — showing the success of mobile geofencing strategies.

While companies can be strategic and send notifications to try and surpass the competition, they can also:

  • Send app notifications when consumers are within a certain proximity of a store
  • Utilize third-party coupon apps to draw in consumers
  • Capitalize on shadowfencing (a geofence that moves with a mobile billboard)
  • Send a targeted advertisement through a social media platform when a consumer has been within that geofence

Agencies can also use geofencing to gather data on: 

  • When customers may or may not be shopping
  • Consumers’ shopping behaviors
  • When consumers are near competitors

Media agencies can capitalize on this marketing strategy to connect consumers and their brands in a more strategic, targeted way.

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