What is Geofencing?

What is Geofencing?

Are you a marketing manager or business owner looking for new and innovative ways to get your message to the market? or are you searching for Geofencing Marketing. By the way before start I want to tell you that lot’s of companies uses this technology for increase their sales or you can say traffic. If you want to know that what is geofencing?  and how geofencing works? then, in this article today, We are going to be talking about amazing technology & one of our favourite marketing services, geofencing. I’ll be covering the basics of geofencing and how your business can utilize this great service.

Source: Reach Local

What is Geofencing?

Geofencing allows you to form a virtual fence around specific locations that your business wants to target by using GPS technology. When someone steps inside this fence, they’ll be added to your audience and will be eligible to start seeing your ads for up to 30 days.

Geofencing utilizes location data to establish a virtual territory. When a user crosses the virtual geofence into the established boundary. it triggers a location-specific push notification, in-app message, SMS text, or another medium to contact the customer. Now when I mention geofencing to business owners it’s often confused with “geolocation” or commonly known as “location targeting”. Just like you’d find inside your Facebook Ads Manager or you know, your Google Ads dashboard.

Now the principles are similar but geofencing is truly location targeting on steroids. So geofencing is what we call Direct to Mobile location based advertising It’s a bit of a mouthful, I know, but it allows companies to serve ads to people based on the physical activities and the actual places they visit.

Forms of Geofencing.

  • One of the most common ways that we see businesses doing this is through location and competitor targeting. You can target competitor locations or locations where your target audience frequently visits. When visitors enter the location, they’ll be eligible to see your geofencing ads. In conjunction with these geofences, we can also create conversion zones, which enables us to track the number of people who saw you ad and then visited your location. Conversion zones are not required but can be helpful for businesses such as restaurants, or stores who want to drive in-store purchase and visits.
For example, say you own a wedding boutique. You could target a competitor's store and serve ads that offer a private fitting or consultation, and highlight affordable dresses from top designers. This would work by setting virtual fences around your local competitors' store locations, and once someone enters that fence, they are now a part of your audience and will be shown your ads for up to 30 days.

If they see your ad and then come to your boutique, a.k.a. the conversion zone, we are able to track that.

Another Example, as a customer nears a retail store at the mall, they cross the company’s established geofence triggering a push notification offer for a limited-time discount.

Competitor geofencing is great for businesses like retail stores, law offices, casinos, hotels, construction equipment dealers, Pet Animals website and landscapers, for example. Another type of geofencing is event targeting. This targets users who attended a specific event, such as conferences, trade shows, concerts, etc. A virtual geofence is traced around the event location during a set, scheduled time frame. Anyone who enters the fence during the event will be compiled into an audience. This audience can then be re-marketed to for up to 30 days post-event.

A geofence makes it possible to target customers in a specific proximity to any physical location, whether it’s near a retail store or within an airport terminal. This hyper-targeted location-based marketing tactic can be a key driver to funnel business through the door.

Another form of geofencing is addressable geofencing, where we can take a set of business or home addresses and target specific people

who live or work somewhere, based on those addresses. This works great if you already have a mailing list of customer addresses and want to get the word out about a current special or offering that you have. The cost of geofencing will depend on which tactic you would like to use, along with how many target zones or locations you are targeting. We recommend an ad spend budget of at least $1,000 for a campaign. Geofencing is an excellent way to ensure your business gets in front of your target market by pinpointing specific locations.

Another useful strategy when utilizing a geofence is to track when and where users were messaged within the geofence, giving further insight into customer receptiveness and behaviour. Geofencing can not only signal when a user enters the perimeter but also how long they remained within the area and when they left.

A definition of geofencing in 2021

So nowadays  geofencing can be described as the best marketing technique to capture the valuable customer base for their business. In today’s era geofencing is not just location based marketing. It is much more than that. Geofencing has many features like retargeting, attribution, and other location-based insights.

Now unlike standard location targeting which uses things like your postcode, radius or city-wide targeting. Geofencing is the ability to serve ads to people that walk inside individual buildings event locations, convention centre’s conferences, retail outlets, even car yards. Or even, if you cheeky enough, your competitors locations so being able to really pinpoint these precise locations gives your marketing more focus and minimises the waste that you typically experience with traditional marketing such as you know, billboards, radio and TV you know, where you’re reaching people you never really intended to advertise to but you still end up paying to reach them anyway.

How Geofencing Works?

Mobile app marketers can establish a geofence using parameters including latitude, longitude, radius, and duration within a mapping service like Google Maps.1 When creating a geofence, it’s also common to include specifications for monitoring behavior such as entering, dwelling, and exiting the geofenced area.

Once the geofence has been “built,” the app can take action when an installed device enters the perimeter, initiating a message or sequence of messages to deliver information, offers, or reminders of the business or service. When implementing a geofencing strategy, it is important to consider the time-sensitive nature of a customer’s presence within a geofenced area.

The goal of geofencing is to provide useful and valuable messages that will enhance the user’s experience in real-time. If uninterested, overwhelmed, or otherwise prompted, the user can disable location-based services or uninstall the application entirely.

So with geofencing, you’re now able to place a digital fence immediately around the building or location you want to target and begin capturing the mobile device IDs of people who trigger the fence by you know, walking into that location Now, once they’ve triggered the fence you can then serve your ads to those individuals while they’re at that location, and for up to 30 days after they leave the geofenced location. Now a common question we get is, you know, don’t people have to have an app open in order to catch the mobile device ID? And the answer is no, you don’t They just need to have their phone turned on and their location services turned on for you to be able to capture their mobile device ID


If you want to reach your targeted customers at right time, then Geofencing Automation Marketing is best for you. You can contact us via contact us page for any queries. We will surely help you for getting your customers.


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