BlogMarketingWhat Is Geofencing Marketing and How to Get Started with It?

What Is Geofencing Marketing and How to Get Started with It?

Geofencing marketing is a powerful tool for businesses looking to target customers with location-based services. It enables businesses to target their advertising efforts and reach users in specific location who are most likely to respond to their message.

From understanding what geofencing is, to learning about messaging effectiveness, creating campaigns, setting budgets and measuring success, dive into all you need to know about geofencing marketing and start utilizing it to acquire more leads and engage your customers.

This article provides an overview of how geofencing marketing works, its benefits, how to get started and strategies for making the most of it. With the right knowledge and tools, you can make geofencing marketing work for your business.

What Is Geofencing Marketing?

Geofencing marketing is a location-based marketing strategy that encompasses targeting customers, prospects and users within a specific geographic area. It uses GPS, RFID (Radio Frequency Identification) or Wi-Fi to create a virtual boundary (also known as a ‘geofence’) around an area and allows marketers to send messages or notifications to mobile devices that are located within the area. Geofences can be small (with radius of up to 200 meters) and large; they can target locations such as competitor locations, convention centers, retail locations, malls, event centers, neighborhoods, and even crosswalks.

Geofencing is often used for several purposes such as targeted ads, sales notifications, deals, directions and information to potential customers, tracking customer behavior in a certain area, leads and influencing brand consideration, and strengthening brand recognition. Marketers rely on both location and data analytics due to geofencing delivering content within an established geographic area. This helps businesses reach out and connect with mobile smartphone users within a particular geographical area, extending the reach of their marketing campaigns and gathering valuable insights about user behavior when mobile users enter or exit a geofenced area.

In addition context targeting, geofencing can also provide valuable data regarding user interaction and reach with a geofenced location so that companies can measure the effectiveness of their campaigns. As a form of location-based digital advertising, this type of marketing strategy lets marketers target audiences based on their current location and mobile device location.

Overall, geofencing provides a powerful marketing tool to target local customers, collect data, and deliver personalized messages targeting users in order to capture potential customers while they are close by certain physical locations. It’s an effective way to engage customers, enhance user experience, and increase brand visibility.

What Technologies Does Geofencing Marketing Use?

Geofencing marketing is a form of location-based marketing that uses GPS, radio frequency identifiers (RFID), beacons, IP addresses, Wi-Fi, Bluetooth, and latitude and longitude coordinates to draw virtual perimeters around a physical location. Geofences can range in size, from as large as 1000 meters to small areas such as 200 meters. By using geofencing for marketing efforts, businesses are able to interact with potential customers within a designated geographic area.

Geofencing can be used in various ways: healthcare organizations can use them to monitor patient care, manufacturers can keep track of assets and stores can develop targeted campaigns in order to filter target audiences. When setting up a geofence marketing campaign, marketers must lay out the boundaries of their designated marketing space. Through GPS targeting, marketers gain insights into user behavior when they enter or exit this space. Notifications, push messages and exclusive offers are then sent to any mobile devices entering the geofenced area as part of the geofencing marketing.

Currently, about 76 percent of US smartphones are compatible with geofencing technology and the data marked can be incredibly valuable to marketers. Data collected through geo fencing helps companies learn more about their customer’s interests, preferences and behaviors. In turn, this valuable information can help marketers tailor their messaging and advertising efforts to appeal to their target audience. Thanks to geofencing, businesses can also use digital advertising methods such as banner ads and retargeting to further reach their potential customers.

Moreover, geofencing allows companies to effectively optimize their ad spend by directly targeting potential consumers within a defined geographic area. It also enables businesses to measure the effectiveness of their marketing by tracking foot traffic and measure the success of their marketing campaigns. By measuring how many users entered a retail location after seeing in-app ads, businesses are able to understand their messaging potency too. Geofencing technology in mobile apps can therefore be a tremendous aid to the marketing team, helping to increase ROI and better retain customers.

How Does Geofencing Marketing Work?

Geofencing is a location based marketing technique that uses software to create a defined virtual boundary or perimeter around a physical business location. This boundary is known as a geofence and it typically covers a geographic area chosen by the marketing team. By tapping into the location data of potential customers’ mobile devices, advertisers can target users with ads and offers when their device enters within the confines of the geofence. Geofencing utilizes the power of GPS, RFID, and geolocation tracking technology to define a virtual boundary around a business’s physical location. Through this, marketers can send push notifications to a specific group of target users who are within the boundaries of the geofencing campaign.

When utilizing this digital marketing tool, marketers are looking to drum-up foot traffic by targeting individuals in their desired area. With these geofencing marketing tips, they can target a wide geographic area or a single building—whatever they determine will meet the demands of their marketing campaign. Two factors heavily dictate the success of a geofencing marketing strategy—the size of the geofencing campaign and the time duration it runs. Though the size of the geofence is obviously dependent on the type of business and its regular customer base, it is important to keep in mind what kind of data collection you are looking to obtain. Additionally, when setting a time duration for the campaign, it is important to consider the best times that could be used to attract potential customers.

Not only does geofencing allow marketers to collect valuable information about the interactions of their target audience, but it also helps to filter out unwanted customers in order to maximize their return on investment (ROI). Geofence marketing can help track how often customers visit particular retail locations, compare the actions taken by customers who are exposed to certain ads versus those who aren’t, and measure the amount of time a user spends inside the geofenced area. All of this information can be used to pinpoint a customer’s behavior and habits towards a store, service, or product.

Furthermore, geofencing allows marketers to set up multiple geofences within a location targeting a single business or event. Here, businesses can track various activities such as visits near competitors’ locations, entrance/exit of customers from a retail location, and more. When used correctly, geofencing marketing campaigns can bridge the gap between advertising to an action. In other words, it helps to measure the tangible impact of its reach beyond just impressions.

For small businesses or retail locations, geofencing can be an effective way to reach the right target audience and maximize ROI. Setting the right size and time duration for the geofence, finding the right offer for the target audience, and creating multiple geofences for different events or locations can all help ensure a successful geofencing campaign. Digital marketing and advertising methods are evolving every day, making new and efficient ways to connect with customers and collect data; geofencing is among some of the most powerful tools for marketers today.

What Do Your Geofencing Advertising Ads Look Like?

Geofencing marketing is a powerful and useful tool for businesses. It allows marketers to send targeted messages to customers within a particular geographic location. Geofencing is becoming increasingly popular among companies as it offers a way to increase customer engagement and reach, while also enabling highly personalized mobile marketing campaigns.

When creating geofencing ads, it’s important to ensure that the ad includes all necessary elements such as an image, copy, calls to action and other relevant information. The message of the advertisement should be tailored to the target audience, in order to maximize engagement and conversions. Marketers can use geofencing to send different types of messages, depending on the goal of the campaign. For example, they may choose to send promotional messages to encourage customers to take advantage of discounts or special offers, or serve up content about the product or service.

Geofencing marketing can be used for not only promoting a product through ads, but also offering exclusive offers and experiences to app users. For example, marketers can use geofencing to create games, allowing users to interact with their brand digitally in a physical setting. Additionally, market-specific targeting techniques provide marketers with the ability to tailor messaging based on the user’s whereabouts. This not only ensures that the right message is being sent – it also helps a business better understand their target customers’ behaviour.

Geofencing has several different forms. Push notifications are usually sent when users enter the specified area defined by the geofence. Display advertising and prompted notifications are common tactics used for geofencing advertisements. Banners ads and sponsored listings can also be used to promote a product or service to users who are near a particular physical location.

Here you can learn other types of marketing!

For businesses that plan to attend a tradeshow, geofencing can help them capture foot traffic from conference attendees as well as new customers. Marketers can through analytics platform create digital campaigns designed to encourage tradeshows attendees to check out the website of the ecommerce store. In addition, they can track performance thanks to analytics platforms, allowing them to understand which ad spend yielded the most clicks and purchases.

When creating geofencing ads, marketers should consider the most popular ad sizes for geofencing, such as 6 second, 15 second, 30 second, and 60 second clips. To ensure that the ad captures the attention of their target audience, marketers should ensure that the video is creative and informative, and the call-to-action (CTA) is compelling enough to drive people to act. By combining the power of video content and geofencing, businesses can effectively engage their target users and start generating more leads.

Benefits of Geofencing Marketing

Geofencing marketing is an effective way for businesses to gain a competitive edge. By leveraging location-based ads, marketers can take advantage of the technology to target consumers at the right time and place. It offers many potential benefits such as better data collection, increased targeting accuracy, improved marketing efforts, and personalized experiences that bring new people to a business.

Geofencing can be an powerful marketing tool, however there are potential problems. For example, large geofences may include devices not actually nearby or even inside competitor stores; this lack of precision limits the audience scale. Geofencing also requires businesses to build campaigns without knowing how effective each geofence is – whether it engages customers or drives purchases.

Therefore, understanding user behavior and preferences are key components to developing a successful geofencing ad campaign. Marketers need to design the ad correctly and use their budget efficiently. The elements included in a geofencing ad should include types of push notifications, content, offers and messages delivered when users enter a geofenced area. Collecting data on consumer behavior is also important so that businesses can accurately target potential customers in the right places.

Creating multiple geofences within a business can extend the reach of a geofencing campaign and help organizations maximize its potential. Utilizing a geofencing strategy in conjunction with other marketing strategies such as online marketing, digital advertising and mobile marketing campaigns can further help drive considerable foot traffic or online engagement. Companies like Walgreens, American Eagle, Burger King, and Mazda have all successfully implemented geofencing into their marketing strategies. Industries such as hospitality, automotive dealers, retail stores, and home security systems are expected to have major growth in geofencing marketing due to the very nature of their business and location-based targeting.

Overall, geofencing marketing provides businesses with four major benefits: more efficient spending, higher quality leads and engagement after store visit, and increased customer loyalty. By using accurate data collection to learn about their target audience, marketers can gain actionable insights about people’s behaviors and preferences and improve their overall marketing strategy. Furthermore, since the majority of the population owns a smartphone, geofencing offers an unprecedented overlap between physical and digital worlds that can potentially generate new opportunities for businesses marketing companies of all sizes.

Tips for Successful Geofencing

Geofencing marketing is a powerful tool for businesses to reach their target audience in a specific geographic area. By creating virtual boundaries, or geofences, around certain locations, companies can send out targeted messages and advertisements to users who enter the designated areas. To ensure that these campaigns are successful and provide value to their customers, there are five strategies that businesses should follow when implementing geofencing solutions.

The first strategy is to create multiple geofences. Companies should think of each fence as a metaphorical net – the more nets they cast over an area, the higher chance they have of catching potential customers’ attention. It’s important for marketers to take into account population density when constructing these fences so that they don’t miss any opportunities with potential buyers.

The second strategy is using data collected from geofencing campaigns to determine which areas and demographics convert best to advertising audience. Marketers need to pay close attention to how people interact with their ads within different regions in order maximize ROI on their campaigns. This information can be used as a guide for future marketing efforts by helping them identify where it makes sense financially for them invest more resources into targeting certain audiences or locations.

Thirdly, businesses must think carefully about using geofencing technology if they want maximum return on investment (ROI). Geofencing requires careful planning and execution in order for it be effective; otherwise companies may end up wasting money on ineffective campaigns without seeing any results from them at all.

Fourthly, businesses must pay attention user experience when utilizing this technology; push notifications sent out through geofence-triggered messages must actually provide value if companies want users engage with them positively instead of ignoring or deleting them altogether . Companies should use similes such as “a gift basket full of goodies” or “an invitation you won’t want refuse” when crafting push notifications so that users feel like they’re getting something special just by being part of the campaign itself .

Finally , businesses need make sure that all aspects of their campaign come together seamlessly in order achieve success . From setting up accurate location tracking systems , designing attractive visuals , writing engaging copy , testing various versions before launch – every step needs be taken seriously if companies want see positive results from their efforts .

In conclusion , following these tips will help ensure that your small business” geomarketing efforts are successful and meet your desired goals . With proper planning and implementation , you’ll be able set yourself apart from competitors while providing valuable experiences your target audience members .

Who Uses Geofencing Marketing?

Geofencing marketing is a great way for businesses to target consumers with a tailored message based on their physical location. Geofencing makes use of beacon technology, GPS tracking, and cellular data to draw virtual boundaries around a particular location so companies can reach their target audience accurately and efficiently. This type of location-based targeting has become increasingly popular with marketers in various industries such as travel and logistics, retail, hospitality, real estate, automotive, healthcare, and finance.

Some of the key benefits of geofencing marketing include the ability to capture customers who may be on the move, measure customer behavior, create engaging content tailored to particular locations, and obtain a high return on investment (ROI). There have been several successful examples of businesses that have used geofencing marketing, including Walgreens, Taco Bell, American Eagle, and BMW. Companies can also leverage geofences to target customers near their physical locations or close to competitor stores by offering exclusive deals or discounts.

When creating a geofencing marketing campaign, marketers should consider various strategies to maximize the potential of geofencing. For example, geofences should be placed close to relevant stores in order to entice customers to visit, battery drains should be minimized, and the format should be adapted for different devices. Additionally, marketers must bear in mind that the cost influences for geofencing marketing will vary depending on things like scalability issues, ad spend per month, and cost per walk-in (CPW). It is important to measure and analyze metrics in order to track ROI and demonstrate the success of the campaign.

Geofencing marketing can be further optimized with the help of third-party providers with services such as geo-fencing, programmatic display, reporting, and analytics. By leveraging the potential of geofencing marketing, businesses can effectively reach their customers and increase ROI.

Real-Life Examples of Geofencing Marketing

Geofencing has become an increasingly popular location-based marketing tool over the years, and there are numerous successful examples of companies utilizing this technology in their marketing campaigns. Uber, Walgreens, and American Eagle are among the most well-known brands to have used location services and geofencing for their advertising campaigns, but companies such as Taco Bell, History Channel, and Rahil Chaudhary have also leveraged this technology to great effect.

Geofencing can be a very powerful tool for real estate agents, who can use it to spread the word about listings and open houses, as well as automotive dealers who can use it to granularly target car buyers in certain locations. American Clothing Retail uses geofencing to prompt users on app to discover their outlets when nearby. Qny Creative implemented geofencing strategies across high volume sales sites such as Amazon. Burger King launched the “Whopper Detour” campaign to promote their product through geofencing, while Sephora sends push notifications to customers nearby store locations. BMW leverages geofencing as a unique selling point to customers as they notify drivers if their vehicle moves without car keys.

The advantages of geofencing don’t just stop at businesses. For consumers, they provide greater convenience and peace of mind: alerts that tell them when something happens outside the usual parameters, such as their vehicle moving without the keys, and notifications when they enter the city borders or when their items are taking longer than expected to arrive.

When considering the cost influences for geofencing marketing, it should be noted that pricing is typically determined by tractions, where a typical price range is $2-$25 per 1000 impressions. The cost can also be influenced by factors such as geography or the size of the geofence, scalability issues, and ad spend requirements. It’s important to measure ROI with metrics such as ad impressions, per location and cost per walk-in (CPW) too.

Overall, geofencing marketing is an effective location-based marketing tool that offers numerous advantages to both businesses and consumers. With advanced technologies like beacon technology, geofencing campaigns have become even more powerful marketing tools, reaching thousands of potential customers. The success stories of companies like Uber, Walgreens and American Eagle show how well geofencing marketing companies can help businesses gain valuable insight into the behaviour of their target audiences, and build strong marketing campaigns that give them good returns.

Cost Influences for Geofencing Marketing

Geofencing marketing campaigns can be expensive, as the cost is influenced by many factors. Factors such as impression volume, features of the integrated app, other targeting features, number and size of the geofences, and advanced targeting features determine costs. Typical price range for services is $4 – $15 CPM (Cost Per Thousand Impressions). Companies must typically spend a minimum of $5,000/month to leverage Choozle’s geo-fencing technology.

Social media platform Snapchat also charges a fee to target specific areas, with a cost of $5 for targeting 20,000 square feet. Spatially offers self-serve options with a minimum spend of $5/day, and managed service with a minimum spend of $500.

To measure success of a geofencing campaign, Cost Per Walk-in (CPW) can be used to track overall return on investment. Services such as MarketingCloudFX help review return-on-investment from geofencing, but companies must have a minimum spend requirement of $20,000 per month to work with them.

In short, understanding the cost influences for geofencing marketing is essential for any company looking to invest in this type of marketing strategy.


Geofencing marketing has become an invaluable tool for businesses wanting to advertise strategically and efficiently. By utilizing modern technologies such as GPS, RFID and Wi-Fi, companies can create virtual boundaries around physical locations in order to better reach and interact with customers in the vicinity. Geofencing can also be used to track mobile device users and target them with highly personalized mobile campaigns.

This digital marketing strategy provides numerous advantages for both businesses and customers that make it a no-brainer for many marketers. Companies are able to measure their campaign effectiveness, optimize ad spend, produce higher quality leads and increase brand visibility, all while providing a great customer experience. On the consumer side, geofencing opens up opportunities to explore tailored content that might provide new value to them.

Despite its many advantages, geofencing is not a one-size-fits-all solution and requires careful planning. Understanding the costs associated with this targeted advertising will ensure success and help companies get the maximum return on their investment. Time and effort put into targeting customers correctly and creating personalized content should pay off and allow businesses to take their geofencing marketing initiatives to the next level.

Frequently Asked Questions

Which is an example of geofencing marketing?

Geofencing marketing is a powerful tool for businesses to reach their customers. By creating virtual “fences” around specific areas, businesses can trigger notifications, discounts or even ads that are tailored towards local customers which makes them an ideal example of geo-marketing.

Geo-marketing is a great way to target customers in a specific area and increase engagement with them. It can be used to send out special offers,

Is geofencing marketing effective?

Overall, geofencing marketing can be highly effective if it is used strategically. It allows marketers to leverage both existing and potential customers’ activity to tailor relevant ads to their needs and boost conversion rates.

Therefore, it appears that geofencing marketing can be a valuable addition to your marketing toolkit.

Can i do geofencing myself?

Yes, you can do geofencing yourself by creating a location-based notification in the Plot Dashboard and downloading our demo app ‘Geofencing by PlotProjects’ for Android or iOS.

Get started now and experience the power of location-based notifications yourself!

Which is an example of geofencing marketing?

Geofencing marketing is a powerful tool that businesses use to target potential customers by leveraging location-based services. Examples include setting up notifications for special discounts when customers enter an area or sending out deals when shoppers are at the local mall.

It can also be used for geo-conquesting campaigns, such as Burger King’s Whopper Detour.

What is geofencing and how does it work?

Geofencing is a powerful location-based technology that allows businesses to target audiences based on their physical locations. It uses GPS, RFID, Wi-Fi or cell data to define a virtual geographic boundary, and when a device enters or exits that area, a trigger action is initiated, such as sending a customized message or notification.

Geofencing can be used to target customers with relevant messages, offers, and promotions. It can also be used to track customer behavior, monitor employee attendance, and even to detect security breaches.

A data-driven professional with more than 10 years of experience in digital marketing, SEO, PPC, automation, and so on. Privately tea lover, gamer, tech nerd, and traveler. I love writing about marketing!

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