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The Importance of GeoFencing


Geofencing is The Newest Marketing Technique For Businesses


Targeting the right audience is important, but what if you could do just that even when they are shopping with a competitor? What if you can market to that audience as they browse your online and offline store? You want to make sure you are marketing to them even if they are about to use your service.

Decades ago, the very idea of this being possible seemed unlikely, but now it is a reality for owners of many businesses.

You are able to give your profits a boost to record highs with geofencing marketing. It is compatible with over 90% of smartphones in the U.S., and it allows you to reach your target audience in a new way. The way geofencing marketing works is by advertising to users based on their current location. You are able to make that range very specific, even down to 1,000 sq. ft.


Geofencing Marketing: What is it?


You are probably wondering what geofencing marketing is exactly. Put simply, it is a location-based marketing strategy that allows you to connect with users of smartphones in a specific geographic location. This connection comes through mobile apps and webpages. Geofencing, since it is location-based, will rely on the technologies of Wi-Fi, Bluetooth, GPS, and RFID (Radio-frequency Identification).


How much is the Geofencing Marketing going to cost?


This kind of campaign can cost up to several thousand dollars. As an example, the geofencing ad will range up to $30,000 a month. When it comes to campaign management, those services could cost you almost $1,500 a month. There are also charges for specific ad platforms, like Snapchat.


How it Works


Sounds complicated at first, doesn’t it? Well, fear not, it is more straightforward than it seems. Especially when you have a company/team of experienced geofencing experts helping you.

We provided you with a quick summary to give you an idea of how it works:

  • First, There is a geofence that is created in a designated area.
  • Second, an ad campaign is created for that geofence.
  • Users step into the geofence, then are added to the targeted advertised audience.
  • Those users will then receive ads through in-app advertisements, searches, display ads, or notifications.

To simplify, when someone crosses your geofenced area, they are added to a list. This list qualifies them for ads for up to 30 days, but they must have a smartphone. They just have to be within the geographic area that you specify.



There is virtually nowhere you can’t place your fence. Even if you just want it placed around your business or the location of a competitor, it is possible to get your target audience’s attention with this marketing technique. Example: You are selling hats, you can place your fence around your business, around other hat shops, or even near hairstylists and barbershops to advertise head accessories.


You are able to get a fence in almost any location in the U.S.


The ads that you send out when geofencing could be a promotion, like a discount on your hats, or a simple invitation to your shop. If you have your fence set up around a competitor’s location, you are able to invite your targeted audience to your shop for a buy 2 hats get one free special.

Businesses are able to deliver ads through apps on mobile devices. These ads will come up on searches or displayed elsewhere. In a few cases, app notifications will be triggered by geofencing.

One of the best aspects of this type of marketing is the freedom to choose where you have your ads appear. If you notice that foot traffic picks up around a certain time, then you can customize these ads to trigger during that time of day.

Here are 6 locations that are ideal for geofencing marketing:

  1. Stores and Streets Nearby
  2. Trade Shows or Events
  3. Your Location
  4. The location of a Competitor
  5. Households (Addressable Geofencing)
  6. Colleges

You are not limited to the six locations. However, this list is a great outline of places you can set up your geofencing marketing campaign.


Geofence Marketing Benefits


Now that you have a better idea as to what Geofence marketing is, and exactly how it operates, we want to give you a look at three major benefits to this campaign strategy:


Shopper Loyalty Increase



Earning a new customer can cost you so much more than just maintaining existing customers. That is why it is a must to build shopper loyalty. Geofencing helps your company do just that, without constantly offering promotions or discounts each time.

You could have mobile users complimenting your company for being better than your competitor.

If you want to make the above statement real, what do you have to do? Well, simply put, you must share relevant promotions that don’t feel like spam. Then you absolutely have to follow that up with a customer experience that is amazing and products that are exceptional. You want to leave them no reason to go anywhere else for the services that you provide.


Data and Analysis


Analytics is a core part of the marketing campaign, geofencing. The data that it runs on will give your marketing team/provider information that they can act upon for your following campaign. This data is delivered in real-time for your team/provider.

Measurable factors include:

  • Visits to Conversion Zone
  • Views or Impressions of Ads

Modifying your campaign while being on the go is another wonderful geofencing benefit. In the event you get no response from users with your promotions, you are able to determine what is failing to work in your geofencing marketing campaign. It could be something as simple as targeting the wrong timeframe or area.


User Engagement Improvements


The gathered data can show you how you are able to boost and improve the campaign’s user engagement rates. It is a simple process of refining your audience in order to have better results generated. It is also a chance to change up and discover proper calls-to-action (CTA) and copy content that works the way you want them to for the targeted audience/market.

If someone is looking for a new cowboy hat, instead of offering a free hat for purchase, you can easily offer a discounted price on the hat they choose to buy. You analyze the responses you get through this promotion, and from that, you are able to generate more leads.

This new data will allow you to refine what ads you are using while boosting the engagement of the audience.


Geofencing Marketing Strategies


You could be trying to figure out a way to bring geofencing benefits to your business. If that is the case, these 5 strategies are ideal for geofencing marketing:


 Size the Geofence Properly



It is easy to become over-excited about geofencing, in many cases, that could be an issue. You don’t want to have oversized geofences. You just won’t have driven results that way. Look at it like this, if you receive an ad on your computer for a store that is about 40 minutes away, you aren’t likely to make that trip the same day.

The answer to this is to limit your ‘fenced in’ location. As a general rule, make your target area only about 4 or 5 minutes away from your store. Depending on the situation, this could be a 4-5 minute walk or a 4-5 minute drive.

The idea is to be convenient for users. You want them to not feel like they are going out of their way to use your services, or visit your store.

Conversion zones may not be a worry for your company. If you are running a store that is strictly based online, then the goal changes to trying to get traffic funneled through your website rather than an in-store location. That is when your geofence is set up around a relevant event or tradeshow to drive traffic.


Do Your Research


Researching your target audience is important. In fact, it is essential to geofencing that your target audience is identified correctly. Understanding your audience, as well as their needs, will allow you to create a fenced-in area that will drive the results you need. Also, you are able to develop the right kind of ads that will encourage engagement and transactions through your store.

If you are still trying to determine your target audience, or you are trying to adjust it appropriately, then your existing data is all you need. For example, if you run a blog, make sure you maintain your presence by interacting with the viewers who comment. Get their feedback and use it to improve your business.


Actionable Ads


You want ads to be actionable from the start. Which is more appealing? “Buy a hat today and get 50% off!” Or, “Stop by to check out our hat sale!” While they both promote traffic, and they are straightforward, the first one encourages more action now. The CTA in the first one is much more specific.

It should go without saying, your ads shouldn’t come off as self-serving or spammish. If you just got a new style of hat, encourage users to try it on rather than purchasing it downright. You want to use this approach to encourage them to move through the buying funnel in a more natural way, rather than just shoving a product in their face with a ‘Buy Now!’ CTA.


Routinely Review your Data


Routinely reviewing your data will help you drive your geofencing marketing campaign to success. This will also help aid your digital marketing efforts. If you don’t do this, how will you know if your campaign is effective?


Utilize All Techniques for Targeting



There are many different techniques that you are able to use with geofencing marketing. Such as:

  • DayParting- Targeting users at specified times of day, this targeting technique is more commonly known as ad scheduling. For example, if your target audience shows more activity on Mondays and Thursdays, then those days are when you want to advertise.

  • Retargeting- Retargeting s a strategy that targets users viewing a product on your business’ website. This ad can encourage them to buy something similar or visit your storefront.

  • Context Targeting- This is a technique that shows ads that are relevant to the page’s content. If they are reading an article about hats, your ad will show up alongside it for your hat shop.

  • Content Targeting- Content targeting is when keywords that are commonly used in searches are targeted. This also means that the keywords’ intentions are targeted as well. If you have content that has the keyword, “Fine Hats for any occasion,” you can rest easy knowing that your content will be presented, and users will be informed of your fine hats.

Geofencing marketing operates similarly to other digital marketing tools. It helps mold your digital marketing strategy. It also helps to inform you of information about your audience like when they are most active and how you should properly market to those who visit your store.


What Kind of Companies use Geofencing Marketing?


Geofencing marketing is used by all sized companies, those of which specialize in different fields. For businesses with an on-location store, this tool is the ideal marketing companion. However, it is still amazingly effective for stores that operate solely only as well. We will be providing you with examples of businesses that effectively use geofencing to grow.


Geofencing Examples


We have decided to compile a list of 5 businesses that have used geofencing to grow. Use the following information to inspire your marketing campaign:




As a basic example, HotelTonight uses geofencing to provide its app users with offers and information involving the best accommodations. It uses GPS data from mobile phones, then it takes that data and delivers location-based content.




Waze is a navigation app, and another basic example of geofencing success. This business is known to work with top brands like:

  • Shell
  • McDonald’s
  • Adidas
  • AT&T

These brands almost quite literally put them on the map. Waze’s slogan on their ads says everything it needs to, “Location marketing, with context.”




The ‘store companion’ for Sephora geofencing feature is another wonderful example of a smart solution for location-data. As soon as the customer enters the store, the companion is activated. It informs them of previously purchased items, recommendations based on that information and the reviews, special limited offers, and more information.


Dunkin Donuts


Dunkin uses personalized Snapchat filters to have its Donut Day celebration. This geofencing marketing tactic is a great example of what a geofence can do to improve business. These filters allow brands to show off their creative personalities and abilities. It also provides users with a shareable, cartoonish experience.


Burger King


One of the most impressive examples of geofencing is the “Whopper Detour” from Burger King. They built a 600-foot fence around the McDonald’s chain, encouraging customers to leave the restaurant and visit Burger King with an offer that was only redeemable if they traveled to one of the McDonald’s locations that have a fence built around it.

There are many other examples that prove the success rate of geofencing, but the bottom line is, it will help your business grow in a way that other strategies fall short on.

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