What Is Geofencing In Precise Terms?

Geofencing is a location-based technology service in which a mobile, desktop or cloud-based app or other software uses GPS, RFID, Wi-Fi or cellular data to trigger a pre-programmed action when a mobile device or RFID tag or mobile device enters or exits a virtual boundary set up around a geographical location, known as a geofence. There are other forms of geofencing that can use multiple creative including programmatic video, static ads, and ctv ott advertising. That geofence can be as small as a building or home and as large as a mile or even a zip code. But it’s the placing of that defined boundary that makes geofencing possible.

Geofencing can be utilized in a plethora of ways and the triggers can vary including:

• mobile push notifications

• trigger text messages or alerts

• send targeted advertisements across multiple digital channels including programmatic display

• allow tracking on vehicle fleets

• track your pets and even your spouses

• track smart phones

• disable certain technology

• deliver location-based marketing data for research purposes

As another source and according to Techopedia, geofencing is described as “A technology that defines a virtual boundary around a real-world geographical area.” While Wikipedia defines it as “Virtual perimeter for a real-world geographic area.” It’s not some complicated programming language or complex development tool.

Geofencing technology (geofences) are set up to monitor driving and walking activity in secure locations, allowing senior manager to see alerts when anyone enters or leaves that specific area that was drawn by the geofencing technology. You’re starting to see many businesses use geofencing to monitor employees in the field working for time tracking, automating time cards, and even keeping track of company property such as vehicles, fleets, tractors, etc.. And of course, many many brands are using geofencing to market to people in precise areas.

How Geofencing Truly Works?

In order to ensure geofencing is set up property, there are a few steps that’s needed to have geofencing work.

First, a virtual boundary around a specific location must be drawn via a GPS or RFID (Radio-frequency identification) enabled software. This can be using polygonal geofencing software to identify points on a map to define the boundary that you want to capture people or devices in. One can also use certain geofencing software to simply draw a circle of 100 feet or less on a platform such as Google Maps using API’s when developing a mobile app. The virtual geofencing will then trigger a response when the device enter or exits that area or is in very very close proximity of the virtual boundary that was drawn by the developer or the administrator.

A geofence is commonly defined within the code of the mobile application, especially since users of the smart phone devices need to opt-in to the location services on their devices for the geofencing to work (pick up the mobile device ID via GPS, Cellular, or Wifi networks). If you go to a concert venue, you might have a mobile app you can download that will deliver information about the event regardless of whether those event attendees are inside of your virtual fence or not. Or, a retailer might draw a geofence around its outlets to trigger mobile alerts for customers who have downloaded the retailer’s mobile app. In these cases, a geofence that is managed by the retailer is programmed into the app, and users can opt to decline location access for the app.

A geofence can also be set up by end-users using geofencing capabilities in their mobile apps. These apps, such as iOS Reminders, allow you to choose an address or location where you want to trigger a specific alert or push notification. This is called an “if this, then that” command, where an app is programmed to trigger an action based off another action. For example, “If I’m five feet from my front door, turn on my lights.” Or you might ask a reminder app to send you an alert once you reach a specific location.

Geofencing isn’t just for mobile apps – it’s used to control and track vehicles in the shipping industry, cattle in agriculture industry and – you’ll see this topic pop up in drone discussions. Nearly every drone is pre-programmed to accommodate geofencing, which are usually set up around airports, open-air venues and even the White House. The FAA can set up these drone-resistant geofences upon request – some barriers will stop a drone in mid-air, while others will trigger a warning message to the user. Some drone geofences will ask for a users’ authorization – a process that ties the user’s identity to their drone – so that law enforcement can keep track on unmanned drones.

Different Uses & Applications Of Geofencing

• Marketing Your Business – As mentioned above, businesses and enterprises can use geofencing as a marketing tool to serve ads to people across 100,000’s of mobile apps and websites after that individual walked inside the geofenced location and even see the ads long after they left the geofenced location (30 days or longer). It can also be used to trigger alerts by retailers to people who downloaded the retailers app and that individual walked nearby or inside the geofenced location set up by the retailer.

• Asset Management – Owners of assets can install geofencing technology into their assets (cards, truck, tractors, computers, etc..) to track when those assets are taken outside of a geofenced location.

• Fleet Management – Many trucking and fleet based companies are using geofencing to track their vehicles based on where they’re going. The HERE Fleet Telematics Geofencing is a REST API that allows you to track whether or not mobile assets are located within the specified geographic areas. An asset is any kind of trackable object, such as a person, car, smartphone, or delivery package.

• Human Resource Management – Companies such as Quickbooks and other software companies are beginning to incorporate geofencing technology into their solutions to allow employees to not only track their time, but to determine if someone has truly left a geofenced location after clocking out.

• Drone Management – Drones are becoming a big deal with delivery but also for taking imagery, videos and more. RFID’s and GPS tracking for the use of geofencing allow drones to be pinpointed on maps. And the use of drones can be better managed when a geofence is drawn thus ensuring that drone doesn’t leave the said geofenced area.

• Law Enforcement – Law enforcement is using geofencing to track people who may have committed a crime. It does require law enforcement to issue a warrant to a judge. These warrants compel a technology company (so far, only Google) to disclose anonymized location records for any devices in a certain area during a specified time period.. Some say this is in violation of the 4th amendment, but the area is still grey for now.

• Tracking Spouses – We are seeing people who may not fully trust their spouse implement geofencing by placing and installing tracking technology on their spouses smart phones and even vehicle to track their location and their physical behavior.

• Tracking Animals – A number of pet owners are also using geofencing to track animals such as dogs, cats, cattle, and such. Those pet owners will place a geofence around a particular boundary and when the pet wanders outside of that boundary, an alert or trigger is set off to ensure the owner to quickly locate and find the animal. Also, pet owners use it to slightly shock the animal to change their behavior and ensure the pet doesn’t leave a particular boundary.

• Security Geofencing – Similar to animal tracking, security companies are deploying geofencing technology in the security space. This is available on modern, high-tech smart home security systems, and set up is very easy. Using the system’s free, compatible app, you can choose a location, distance, and variety of actions. The distance and location work together to define a perimeter, or fence, around a set point. Then, the app constantly monitors your location.

  • Lighting (via Smart Outlets or Bulbs)

  • Thermostats

  • Door Locks

  • Alarm Arming System

  • Television

  • Appliances

  • Lawn Speaker Systems

  • Garage Door Openers

  • Water Shut Offs

  • GPS Trackers (Great for kids!)

  • Sound Systems

• Market Research – Geofencing technology can also be use for market research purposes and to determine where people are going and the types of people based on demographic and psychographic data where they are frequenting.

Geofencing Statistics

Given the mobile centric nature of geofencing or white label geofencing, it is growing both in its adoption and effectiveness in driving its purposes across many industries. There are many uses of geofencing and there are statistics that back up the power of hyper local RFID tracking and marketing.

• Geofencing is compatible with 92% of smartphones. That includes IOS, Andriod, Google and other smart phone software systems.

• The average consumer spends 5 hours a day on their mobile device.

• 3 out of 4 consumers complete an action after receiving a message when approaching a specific location

• 53% of shoppers visited a retailer after receiving a location-based message

• The number of smartphone users is over 220 million

• 22% of businesses say they use hyperlocal targeting

• 71% of consumers prefer a personalized ad experience.

• 80% of shoppers use their mobile devices inside physical stores

• 77% of customers will follow through with a purchase if a CTA is included in the ad

• Mobile ads with geofencing have double the click-through rate. This is due to the hyper local nature and granular targeting allowed for geofencing.