Looking Ahead: The Future of Geofence Marketing in 2022
Geofence Marketing:
With the rapid advent and adoption of RFID (radio frequency identification) technology and the use of GPS (Global positioning system) network, geofencing has emerged in the last few years, which Is a relatively new technology that creates virtual geographic boundaries in an area. When a GPS-enabled device enters or leaves such room, the geofence software activates the visitors’ smartphone, such as sending notifications, alerting, sharing promotional deals, etc.
Geofence Marketing in 2022:
It’s about time that we reconsider geofencing and think about the novel opportunities it can provide. The technology has demonstrated to be a very efficient way of reaching customers at the right place and at the right moment. However, as we move to a new decade, the capabilities have changed, and marketers continuously seek to find better ways of using location-based technologies to their benefit. Almost half of the business marketers are using location-based advertisements to give different offers to clients. As positioning (GPS and RFID) and mobile technologies continue to evolve, it is safe to say that geofence marketing will undoubtedly increase in popularity in the coming years.
The Division of Worldwide Geofencing Market:
The global geofence market, segmented by geofence services in Chicago, is based on the following:
Networks:
- Unlicensed Low Power Technology
- Cellular network
- Bluetooth
- RFID (radio frequency identification)
Components:
- RFID Tag
- Software Application
- Smart Sensors
End-use Industries:
- Retails
- Museums, stadiums
- Automotives and logistics
- Cafes and restaurants
- Healthcare and life sciences
- Aerospace, defence, and security
- Residential uses and many others
Regions of Operation:
- Latin America (Argentina, Brazil, Mexico, and so on)
- MEA (Middle Eastern states and Africa)
- Europe (Eastern European and Western European nations)
- Japan
- North America (Canada and US)
- APEJ (Asia-Pacific region excluding Japan)
Geofence Marketing Trends in 2022 and Beyond:
Geofence Marketing to Witness Rapid Growth with More Valuable Applications:
Let’s look! at some factors that show how location-based advertisement is going to evolve and reshape business advertisement in the future and how marketers can use it to their advantage
- As indicated by marketing specialists from TMR (transparency market research), the worldwide geofencing market is likely to acquire US$2 worth of revenue before the end of 2022.
- It is noted that the worldwide geofencing market comprises both small and large business units’ operating in it. Consequently, the competition has risen drastically and undergone successive fragmentation. The competition among potential businesses is expected to rise as they struggle effectively to capture their target market’s attention and bring cutting-edge solutions to address different users’ needs.
- Large sale retailers and new player vendors are using aggressive marketing strategies to poach customers from others. One such technique is ‘geo-conquesting.’ Players in geofence marketing try to outshine their rivals by constantly developing innovative products and presenting them to visitors at their location in real-time as they approach a geofence to make a buying decision. So the applications of geofencing are going to boost further to reap more benefits.
- Although many locating technologies are deployed in the geofence market, such as GPS, Wi-Fi, Bluetooth, and many others, the cellular network segment is the most widely used. It is expected to boost further in the coming years. The reason is better-rising network performance and their ability to facilitate several geofencing operations conveniently. Cellular networks have a wide range and perform better in comparison to low-power technology networks such as Bluetooth.
- Considering the regions, North America and Asia Pacific regions are likely to witness maximum geofence growth.
- North America is anticipated to have a leading share in geofence marketing. It is attributed to the pervasive presence of end-users, extensive penetration of smartphones, the presence of exceedingly advanced GPS framework, and the deployment of an efficient marketing tactic by stakeholders.
- Asia is also expected to account for a significant share in the global geofence market due to the supportive policies and the government’s investment in the related field.
Factors that can Hinder Geofence marketing’s growth:
Along with its various benefits, geofence marketing has a few opposing sides that can hinder its growth. These are:
Device Monitoring and Individuals Privacy:
- Geofencing requires user’s data plus location information to operate effectively. In recent times, there is a remarkable upsurge and concern among the users about their privacy. As geofence collects a lot of data about potential users and constantly monitors the device’s location, people have articulated and expressed worry about how an activated geofence app feels like an intrusion to their privacy. So, this might prove to be a hindering factor for geofence marketing.
- Another significant drawback to geofence marketing is the battery drainage the app causes to active devices. With dynamic and passive geofencing, the app operates actively and keeps running in the background, thus draining the phone’s battery faster. Therefore, it isn’t much liked by the users of battery-hungry devices.
Latest Geofencing Applications:
Here are some basic and some new applications of geofence:
- Marketing: Besides marketing through social networks, geofencing has become a popular method for businesses to convey in-store promotional deals to visitors as soon as they enter the geofence range. Besides, it helps business organizations to target audiences with particular ads based on their location precisely.
- Audience Engagement: Geofencing helps engage crowds at organized events like matches, festivals, exhibitions, fairs, seminars, etc., by sending related information, posts about those events to the visitors as soon as they reach the venue.
Banking and Finance: The finance and technology sector, also known as FinTech, sees some practical geofence applications in their field. So, the scope of geofence marketing is also likely to increase there. One such example is locating client’s position against their card transaction. It helps ensure that transactions made against the client’s card are made by the clients, hence reducing fraud chances. Bank visitors can also be notified of the latest policies, new banking services, and related counters as soon as they enter the bank premises.
- Social Networking Apps: Several social networking apps such as Snapchat make use of location-based information to display relevant stickers, frames, filters, and other content that can also be shared. Examples are custom-made photo filters for birthday parties or location-based stories. This is possible due to geofencing.
- Managing Human Resources: geofence can help organizations monitor employees, especially those who work off the field. Also, it can automate transaction cards, record check-in and checkout timings of employees, and much more can be done.
- Security Purposes: you can set your devices such as thermostats, garage shutters, phones, and gates to give alerts whenever they are opened, closed, switched on or off, and so on.
The Future Seems Encouraging:
With businesses and other users becoming confident and comfortable using location-based technologies such as iBeacon and geofencing, the future of geofence marketing seems bright.
Depending on your business’s specific nature or need, you can incorporate the features of location-based marketing in your overall marketing that you perceive will give the maximum output for you. Besides, in a market that is already saturated with competition, businesses must consider techniques that can significantly enhance the relevancy of marketing efforts and buyer’s needs.
Although there are some concerns about geofencing about client’s privacy and battery usage, geofencing does not seem to lose its importance any soon, especially in the post-Corona economy. As the world enters into another decade, you need to efficiently ride the waves of the latest technology-oriented marketing techniques to stay on top of the game.