Geofencing is not a particularly new concept. How it is being used is causing a bit of a stir this week, however, so lets take a minute to review.
http://en.wikipedia.org/wiki/Geo-fence
The Wikipedia entry states:
A geo-fence is a virtual perimeter for a real-world geographic area.
A couple of options are available using hardware to send a signal covering a particular space. A central point can generate a radiated fencing signal. Or a custom area can be defined. Both are illustrated in the image below. As a user with a device capable of GPS triggers enters the area the designated event is triggered.
So what is geo-conquest?
What if a company used geo-fencing to tag a competitor's area with information that would drive possible customers away from that site and towards their own locations? Sound science fiction? Hardly. Outback Steakhouse has recently engaged in a campaign to perform exactly that way and the results were very strong.
http://www.mobilemarketer.com/cms/news/advertising/15950.html
Here is a snippet from the article:
Outback was looking to increase intent to dine for lunch and dinner. At the same time, the chain wanted to drive traffic into restaurant locations from both loyal customers and those considering other casual dining restaurants.
To achieve these goals, Outback worked with xAd to put a 10-mile geo-fence around Outback Steakhouse locations and a five-mile geo-fence around other casual dining locations, which is known as geo-conquesting.
This does seem to beg the question, are we engaged in a marketing arms race? Is this a "game theory" question where the initial benefit is outweighed once your opposition begins using the same methods? For now the results are definitive.Happy reading,
J.W. Gant
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