The geofencing market has exploded in recent years. According to a study by Global Market Insights, the size of the geofencing market is projected to grow to $1.7 billion by 2024. As mobile devices become ever more inundated in our day-to-day lives, geofencing is poised to become the dominant paradigm in marketing.
As a nod to the successes of the geofencing industry, we have put together this list of important statistics related to geofencing and mobile advertising. Incorporating these statistics into your next marketing campaign will help you achieve the optimal ROI on marketing costs.
Important Geofencing Stats
The number of smartphone users is over 220 million
As of 2017, there were an estimated 224 million smartphone users in the US. This number is projected to reach over 270 million by 2022. Younger people are more likely to use a smartphone for internet access and the average American spends about 3 hours per day on their phone.
22% of businesses say they use hyperlocal targeting
Despite the buzz surrounding it, relatively few companies are making the most of geofencing potentials. According to one survey by Search Engine Watch, only 22% of survey respondents said they used precise location-based targeting tactics. That means almost 88% of companies are not making the most of location-based advertising.
80% of shoppers use their mobile devices inside physical stores
According to data from Outerbox Design, 80% of shoppers surveyed said they used their phones while shopping in physical stores to search for products and compare prices. Since so many people are using their phones in physical stores, they create great hotbeds of geofencing activity. Your customers may already be on their phones, so you can set up a geofence to target in-store customers with specific deals and promotions.
51% of customers discover a new company or product while using their phone
According to Reach Local, about 51% of smartphone users report having discovered a new brand or product while using their phone’s search capabilities. In that sense, geofencing data just reinforce what we already know: targeting users through geofencing tactics helps them through the buying cycle when it comes to making purchasing decisions.
77% of customers will follow through with a purchase if a CTA is included in the ad
One of the best features of geofencing is that it can be combined with a traditional call-to-action to boost sales. Data indicates that 72% of customers will follow through with a purchase pushed to them by an ad if it has a powerful CTA. Your geofencing ad campaigns should include strong CTA’s to incentivize customer conversions.
Geofencing has come so far in the little time it has been around and shows no sign of stopping soon. In order to succeed in the cutthroat marketing world your brand needs to be ahead of the curve. Geofencing is one way to make sure you have that competitive advantage.
