Geofencing vs. Beacons: What's the Difference?

When it comes to beacons vs. geofencing, it’s important to know what they can do so you can pick the best option for your business. Find out how beacons and geofencing work and which you should choose for your next ad campaign. 

WHAT IS GEOFENCING AND HOW IS IT USED? 

Geofencing establishes a geographic region using GPS and creates a digital fence. Any user with a mobile device within that fenced area is targeted by the geofencing campaign and served an ad. Alternatively, you can use demographic information to narrow the ads to a specific subsection of users within the area.

Geofencing isn’t limited to those currently within the geofenced area. It’s also possible to target anyone who has been in the defined area within the past 30 days. 

GEOFENCING VS. BEACONS: WHICH SHOULD I USE?

When deciding between geofencing and beacons, the most significant determining factor is your goal. Different goals require different tools.

WHEN TO USE GEOFENCING

Businesses choose to use geofencing for broader targeted area advertisements. This can be as small an area as your store's footprint but can also be used to target larger areas within your city. 

While geofencing has a larger targeting footprint and is less accurate than beacons, it requires no additional hardware, Wi-Fi, or Bluetooth to function (although Wi-Fi and Bluetooth can both make geofencing more precise, especially in buildings and other areas where cell signals may be weak). Geofencing leverages GPS services in mobile devices, which means any company can quickly use it without additional installation or setup costs.

Additionally, while geofencing can be used in conjunction with an installed application, it can also target consumers within geofenced areas through advertisements on websites and social media, even if they don’t have your app installed. 

WHEN TO USE BEACONS

Beacons are best used to target and interact with customers in your store. Beacons can help improve the overall shopping experience by providing hyper-specific personalized messages to customers but are limited to the distance of the physical network established by the beacons. 

Unlike geofencing, beacons must be bought, installed, and set up to function properly. Furthermore, customers must activate Bluetooth on their mobile devices. They may keep it off to preserve battery life unless they use it frequently.

Beacon programs also require customers to download and install an app and allow access to their devices from the Bluetooth network. While this may work for dedicated customers, these requirements may turn off first-time or skeptical customers.

HOW DO YOU DECIDE?

For most companies, geofencing is a better option than beacons because it is more cost-effective. With Agility, even small companies can quickly make and manage multiple geofencing campaigns without buying and installing beacons in their store or worrying about forcing customers to download an app.

AGILITY MAKES DIGITAL MARKETING EASY

At Agility, we help brands meet their goals and spend advertising dollars efficiently. Contact us today for more information about geofencing and digital marketing.