Geofencing allows online businesses to restrict access to products within certain geographical lines. By utilizing numerous technologies, these systems are an essential way to adhere to local content licensing deals and protect the integrity of platforms. But how does it work, and which industries need it to operate? In this guide, we’ve explained geofencing and its numerous applications.
Understanding the Technology
In simple terms, geofencing works by creating a virtual accessibility zone around a set geographical area. This area can be as small as a house or building or as large as an entire nation. The tools combine GPS tracking, radio frequency identification, Wi-Fi, and cellular data to track when a device has crossed the threshold of a geofenced area.
The accuracy of the tools can be as minimal as a few meters, giving businesses the ability to be incredibly precise. This is important when it comes to meeting local content laws. For example, anyone wanting to play the retro Cash Volt to win up to 2,500 times their bet must be located in an area where online gambling is permitted, and the slot is approved. The entertainment market, therefore, is a primary user of this tech.
Entertainment and Media
Anyone who has ever traveled internationally and attempted to access their streaming services will have noticed that in each new region, different content is available. This is because each country’s services will have its own licensing deals with distributors, creating inconsistencies in what is available where.
Geofencing has also been used to combat password sharing at Netflix. This recognizes the Wi-Fi details of subscribers’ primary locations and blocks access at different addresses. Not only does Netflix protect its deals with local distributors in each region with geofencing enforcement, but it also protects its bottom line.
E-Commerce Websites
The online retail sector has also benefited from geofencing technology in various ways. The clearest reason for this is that it ensures local retailers are pricing and shipping their products to a local customer base. International sales may require additional dealing with hidden procedures and costs such as tariffs.
In marketing terms, promotions can also be tailored to suit customers in restricted regions. These could coincide with local events, or award perks based on a user’s proximity to a location. Retailers like Amazon have leveraged the technology to refine their offers and improve their logistical processes, proving the multifaceted benefits of geofencing.
Logistics and Town Planning
Unlike its application in entertainment and commerce, geofencing in logistics and town management is rarely recognized by customers.
This can see location data collected in real-time that tracks movement trends and traffic, which can then be utilized to improve transportation, logistics, and the design of roads and cities.
For example, the Waze for Cities program benefits customers by sharing up-to-date information about road closures or incoming weather events. It also partners with government agencies to help improve infrastructure plans, providing valuable insights and solutions to pressing logistics problems.
Geofencing: An Integral Tool for the Modern Age
With geofencing technology continuing to evolve, it has become apparent that the tool is essential in the digital age. Its various applications benefit industries in media, commerce, and logistics, among many others, helping businesses to align with the needs of consumers and governments.
