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Why Businesses Need To Leverage Geofencing Marketing

Have you ever thought about how you got a notification when you walked by a shop or a café and thought about buying a coffee? Have you ever gotten a discount for a phone cover soon after buying a smartphone? If these examples sound familiar, it’s because of geofencing marketing.

What exactly is geofencing marketing?

WHAT and HOW of geofencing marketing

Image Source: Quantamix Solutions

Geofencing marketing is a form of location-based marketing in which a virtual border is created around a predetermined area using GPS (Global Positioning System) via satellite.

The physical limits of a target place are referred to as a “geofence.” It might be a specific city, a zip code, a county, or a geographical region surrounding a real business.

Any smartphone user can enter or exit a virtual border known as a geofence, location target, or Geotargeting.

Numerous geofenced marketing channels can also be configured for firms with multiple locations. Marketers can better connect with the individuals who live in certain areas by using geofencing marketing.

With so many possibilities, it is important to narrow down the target demographic in order to send out appropriate alerts and marketing efforts.

How does it function?

Geofencing Marketing Process

Image Source: Propellant Media

The goal of Geofencing Marketing is to identify user presence within the fence. It works to attract customers in a certain location. When they are at least 50 meters away from the location, they may receive mobile notifications about it.

Setting up geofencing marketing campaigns is as simple as three steps:

  1. Set up your physical locations with Geofences.
  2. Contextualized alerts are sent when users arrive, depart, or remain in specified locations.
  3. Location analytics reports may be used to assess advertising effectiveness and enhance performance.

The Advantages of Geofence Marketing

What Is Geofencing Marketing?

Image Source: Slide Share

1. Easily reach customers

Geofencing allows you to reach out to your consumers at the appropriate time and in the right place. The technology’s distinguishing feature is that it interacts with consumers as soon as they reach the geofenced region. This implies you may deliver promos directly to your consumers at the precise moment they can visit your store.

2. Improved Targeting

By customizing your marketing messaging depending on geography, you may target people in your store’s area, boosting the likelihood of drawing more people to your shops. This ensures that marketing messages are better targeted and personalized.

3. Boost User Engagement

You can optimize your campaigns and increase user engagement rates based on the data you collect. In a nutshell, you’re honing your audience to get greater outcomes. You’re also learning which calls-to-action (CTAs) and ad text perform best for your target audience.

With your new data, you may fine-tune your advertising even more to increase the engagement of your target demographic.

4. Improve Data-Collection Efforts

When you tailor your marketing approach to a specific geofenced region, you get more comprehensive data from customers than you would from a larger digital marketing campaign. When a consumer enters your retail business as a result of a geofenced advertisement, you may collect information such as visit length, expenditure, messaging efficacy, and much more.

5. Low-Cost and Productive

If your marketing team uses the Google AdWords platform, your company already has the tools it needs to run a successful geofencing marketing campaign. Google allows companies to define location-based criteria for their sponsored advertisements and business listings at no additional cost. You may target your sponsored advertisements to show in foreign areas, the United States and Canada, a specific region, a single state, or a distance radius you choose.


Geofencing marketing may be a powerful tool for increasing traffic to your store, website, or social media platforms.

Remember that prospective consumers’ locations aren’t enough: you must also determine who your target audience is and design advertising to deliver specifically to them.

Author avatar
Arundhati Sensharma