Geofencing is no longer just a buzzword—it’s becoming a crucial part of digital marketing strategies. The ability to target potential customers within a specific geographical area has opened new doors for businesses, offering precision that traditional marketing can’t match.
The State of Geofencing: Who’s Buying and How Much?
Recent data from Borrell’s August 2024 survey reveals that 20% of businesses are using geofencing to enhance their marketing efforts. On average, these businesses are investing around $12,200 annually in this technology. This growing investment shows that geofencing is becoming a powerful tool for advertisers looking to reach consumers where they are—literally.
Where Businesses Are Turning for Geofencing Services
So, who’s helping these businesses take advantage of geofencing? It turns out, digital agencies are leading the way, with 41% of businesses opting to purchase geofencing services from them. Their ability to seamlessly integrate geofencing with broader digital strategies makes them a top choice.
But they’re not alone. Local media companies are close behind, providing services to 33% of businesses. With a deep understanding of local markets, they help brands tap into the potential of targeting specific regional audiences—making them a trusted partner in this space.
Interestingly, specialized geofencing companies and individual consultants each hold an 11% share of the market. These smaller, more tailored services are perfect for businesses seeking a custom approach to geofencing without the commitment of working with larger firms.
DIY Solutions and the Road Less Traveled
Despite the availability of DIY geofencing software, only 5% of businesses manage their geofencing in-house. This low percentage suggests that most businesses prefer to leave this highly technical task to the experts, rather than juggle it themselves.
Another interesting trend is the relatively small market share of mobile app marketing agencies, chosen by just 3% of businesses. This niche group might be on the rise as mobile usage continues to surge. Meanwhile, gig platforms like Fiverr or Upwork barely register in the geofencing space, with only 1% of businesses turning to these sources for help.
What’s Next for Geofencing?
As more businesses embrace geofencing, we can expect shifts in where they buy these services. For now, digital agencies and local media companies are dominating the market, but with the demand for hyper-local targeting on the rise, specialized agencies and freelancers might gain more ground.
Businesses that haven’t yet tapped into the power of geofencing should seriously consider its benefits. The ability to target potential customers within precise geographical boundaries could give your marketing strategy the edge it needs.
At Atomic Creative, we believe in letting the research guide us to the best solution for your business. If you’re curious about how geofencing can elevate your brand, let’s connect and explore whether this innovative strategy is right for you.
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