Since the time in which people began to transition to mobile devices actively, location-based marketing has become a significant potential for the advertising business. This great strategy is built on technology that makes brand-user communication relevant by using current user geolocation and journey history.
With that being said – there are two mechanisms of location-based marketing: geo-targeting and geo-fencing. Each covers aspects of location marketing via mobile – Not to be mixed with other digital location advertising methods, such as motorway advertising.
But the question on your mind right now is probably ‘what the difference between geo-targeting and geo-fencing is? Well, we will explain the difference between these two location-based marketing strategies – just read on.
What is Geo-Targeting?
Although the terms geo-fencing and geo-targeting are frequently used interchangeably, they each have separate meanings. Geo-targeting is an extension of geo-fencing. Rather than creating a ‘fence’ in a specific area, you can choose a country, a city, or a larger area. It defines the IP address of a consumer’s PC or GPS and works out the demographic targeting characteristics to supply targeted ads to consumers.
What is Geo-Fencing?
Geo-fencing is a location-based service in which a mobile device or RFID tag enters or exits a virtual geographic boundary, known as a geofence. An app or other software programme uses GPS, radio frequency identification, Wi-Fi, or cellular data to initiate a targeted marketing activity.
For businesses, it is a form of location-based targeting. They establish a ‘fence’ on a geographic map instead of using location details to target consumers in one location.
What Are the Differences?
Purpose
Although geo-targeting and geo-fencing have a lot in common, the brands that use them typically have different goals.
The main purpose of geo-targeting is to create a personalized advertising experience for the consumer and increase brand awareness to improve future conversions.
On the other hand, the main purpose of geo-fencing is to deliver hyper-relevant advert experiences to consumers to convert leads in a certain region quickly.
How They Work
While geofencing works by setting a narrow virtual ‘fence’ around specified geolocation, geo-targeting works by setting a larger and wider geographical location, such as around a city, district, or country.
Who Needs Them?
Geo-targeting is a method required by just about every brand and business, regardless of the kind of business – every business can benefit from what geo-targeting offers. Geo-fencing, however, is most often adopted and utilized by event advertisers and brick and mortar business owners.
Final Thoughts:
In geo-fencing, every lead that enters the virtual fence can be tracked. It will see an ad in the mobile browser, mobile app or receive a push notification once logged in. Only geo-targeting leads that fall into a given category are targeted with geo-targeting. These categories can be broader and include leads from a certain district, city, or even a whole country.
