Unlocking the Power of Geofencing Marketing and OTT Advertising: A Comprehensive Guide

So let’s delve into the concepts of geofencing marketing and OTT advertising, explore their benefits and study examples of companies successfully implementing these strategies.

What is Geofencing Marketing?

Geofencing marketing is a location-based marketing technique that uses GPS or RFID technology to create virtual boundaries or "geofences" around specific physical locations. The geofences vary in size, ranging from a few metres to several kilometres in radius. Once a user carrying a mobile device enters or leaves the geofenced area, it automatically prompts the delivery of marketing messages or advertisements to their mobile device.
 

Benefits of Geofencing Marketing:

• Hyper-Targeted Marketing:
  Geofencing allows businesses to target consumers based on their real-time location, which helps in the generation of highly personalised and relevant marketing messages.
• Increased Engagement:
  Delivering timely and contextually relevant messages can significantly organically increase user engagement and get better response rates.
• Improved Conversion Rates:
  Geofencing is a great way to experience higher conversion rates as users receive offers or promotions when they are in close proximity to a business location.
• Enhanced Customer Experience:
  By delivering relevant information at the right time and place, businesses can provide a better customer experience overall.

Examples of Geofencing Marketing:

Here are a few examples of geofencing marketing that showcase how brands and marketers can get excellent responses by using it the right way.

• Starbucks:
  Starbucks uses geofencing to deliver personalised offers and relevant persuasive messages to users when they enter a certain radius around their stores. This helps drive foot traffic and increase sales.
• Sephora:
  Sephora sends push notifications to customers when they are near a Sephora store, offering discounts or rewards to incentivise in-store visits, which work incredibly well for the brand.
• Target:
  Target uses geofencing to send reminders to customers who have added items to their online cart but haven't completed the purchase when they are near a Target store.

What is OTT Advertising?

OTT advertising refers to ads delivered to viewers through Over-The-Top platforms, which are streaming services that deliver content over the internet without requiring a traditional cable or satellite subscription. Examples of OTT platforms include Netflix, Hulu, Amazon Prime Video, and Disney .

OTT advertising can take various forms, such as pre-roll or mid-roll ads that play before or during a streaming video, banner ads on the interface, or sponsored content integrated into the programming.

Benefits of OTT Advertising:

• Wide Audience Reach:
  OTT platforms have a vast and diverse user base, allowing advertisers to reach a large pool of audience.
• Targeted Advertising:
  OTT platforms collect data on user preferences and behaviour, making way for highly targeted and relevant advertising.
• Non-Skippable Ads:
  Unlike traditional TV advertising, many OTT ads are non-skippable, ensuring higher exposure and engagement.
• Detailed Analytics:
  Advertisers receive detailed analytics on ad performance, providing valuable and reliable insights for optimisation.

Examples of OTT Advertising:

• Hulu:
  Hulu offers a variety of ad formats, including pre-roll and mid-roll ads, which significantly helps advertisers seeking to reach its large viewer base.
• YouTube:
  YouTube offers advertisers the opportunity to deliver targeted ads to viewers based on their interests and viewing behaviour, this way, even the viewers stay engaged and even find most of the ads to be valuable or relevant.
• Amazon Prime Video:
  Amazon Prime Video incorporates sponsored content, allowing brands to integrate their products seamlessly into popular shows.

Combining Geofencing Marketing and OTT Advertising:

By combining geofencing marketing and OTT advertising, businesses can create a powerful marketing strategy that targets consumers based on both their physical location and streaming habits. For example, a restaurant can use geofencing to target users in close proximity to their location with special offers, while also running OTT ads on streaming platforms to reach a broader audience with their brand message.

Marketers nowadays can embrace the power of geofencing marketing and OTT advertising to create personalised and relevant content for their target audience. They can certainly leverage location-based technology and the popularity of streaming services to boost user engagement and achieve remarkable business outcomes. Consider exploring these dynamic strategies to propel your brand to new heights and outshine the competition seamlessly. Seize the opportunity to innovate, captivate and conquer!