Geofencing Marketing: Why Your Business Needs To Get On Board

Geofencing is a location-based service in which a mobile, desktop or cloud-based app makes use of GPS, RFID, Wi-Fi, or cellular data to trigger a pre-programmed action when a mobile machine or RFID tag or mobile device enters or exits a digital boundary set up round a geographical location. The three methods often used in geofencing are geotargeting, geofencing, and beaconing. 

Whereas geotargeting is centered on turning in centered advertising to computer users based on location, beaconing focuses on transmitting centered messages and records to nearby cell devices. Geofencing is centered on the virtual perimeter you construct around a specific geographic region to deliver focused messaging. 

Depending on how a geofence is configured it can enable mobile push notifications, trigger textual content messages or alerts, send targeted commercials on social media, permit tracking on automobile fleets, or deliver area primarily based marketing data. The time-honored function of geo-fencing is that it uses place services to discover a user’s gadget within the predefined quarter of the geofence to trigger a notification.

Geofencing Applications

  • Fleet management – Geofencing can alert a dispatcher when a truck driver breaks from his route.
  • Marketing – A small commercial enterprise can text an opt-in consumer a coupon code when the customer’s smartphone enters a defined geographical area.
  • Asset management – A community administrator can set up alerts so that when a device leaves they can follow its location.
  • Law enforcement – An ankle bracelet can alert authorities if a character under residence arrest leaves the premises.
  • Social networking – Most notably, Snapchat. Location-based filters, stickers, and other shareable content are all viable with geofencing.
  • Marketing – Besides social networking, geofencing is additionally a popular way for groups to deliver in-store promotions, alerting you properly as you step in the range of the store.
  • Audience engagement – Geofencing is used to have interaction crowds at organized events, like concerts. For instance, a live performance venue may use a geofence to crowdsource social media posts
  • Human resources – Some companies rely on geofencing for monitoring employees who spend time off-site. It’s additionally an effortless way to automate time cards, clocking employees in and out as they come and go.
  • Market Research – Geofencing can also be used for market lookup functions and to determine where people are going and the sorts of people based totally on demographic and psychographic data of the place they are frequenting. 

How Is Geofencing Being Used by Marketers? 

• Brand apps – A geofencing plugin can be without problems delivered to an app to allow entrepreneurs to ship notifications when an app user enters or exits a geofenced area.
• Web ads – Location-based ads can be saved on search engines such as Google when users go beyond a boundary.
• Text messages – Text messages can be sent to cell users when they set off a described area.
• Social media ads – Social media ads can be served to customers who cross a geofence. Through these platforms you outline your radius, and ads are dispatched to consumers when they enter that geofenced area.
• Brand Application – Many groups have developed their app, which buyers download, and of which entrepreneurs use to ship in-app notifications when a consumer enters a geofenced area.
• Third-Party App – You can utilize third-party functions to send your notifications. For example: a coupon app can be utilized via a restaurant to ship coupons as soon as a patron enters a geofenced area.

Main Benefits Of Geofencing

What is it about geofencing that gets marketer’s excited and how can it help your advertising and marketing efforts? 

1. Easy client reach: When it comes to reaching out to your customers, geofencing is a choice you shouldn’t overlook because it notifies your client about your product/services whenever they’re close to your business place via their cell phone.
2. Geofencing attracts customers passing nearby – When a geofence is set up around your business, you can reach people with in-app smartphone signals or SMS pushes when they come within a safe distance of your business.
3. Geofencing is personalized – Customers tend to pick advertising and marketing that is personalized in some way. With geofencing, it is possible to customize your advertising to any one based totally on their location, increasing their probabilities of enticing with your advertising message.

4. Geofencing can encourage competition – You can set up round your competitor’s business.
5. Geofencing generates information – Geofencing additionally makes it easy for you to collect information on consumers. Over time, you can start to see patterns in which geofenced areas are most popular.
6. Instant consideration – Through geofencing, you can set off on the spot messages that could pick a customer’s pastime and nudge them to come take a look at today’s offers in your store.
7. Great when coupled with other advertising and marketing channels. Even better, when you’re coupling geofencing advertising and marketing with other digital advertising channels such as Google Adwords, Facebook Advertising and YouTube, you tend to create an omni channel marketing solution.
8. Produces Great Data – With geofencing, you can attain exceptional insights into the target market entering specific geofences and those who are leaving.
9. Track People & Employees – Geofencing is now being used via fleet management, HR, security, and even regulation enforcement to improve music for humans and employees. 10. Spend Effectiveness – When your advertising is hyper-targeted, and dispatched at the right time and place, your engagement numbers go up. With geofencing, you’re spending advertising dollars on possibilities that are most likely to take action, and spending much less money on those that are not.
11. Personalized Customer Experience – Geofencing additionally lets you customize the customer experience. If you’re marketing to a precise area, you can utilize the demographics of that neighborhood population and customize your promotions accordingly.

How To Implement Geofencing In Your Marketing Strategy

1. Don’t go too big – A rule of thumb is to keep the geofencing radius inside a four-to-five travel radius. If you make your geofence larger than this, it’s extra probable your advert can lose relevance.
2. Be transparent – If your app makes use of GPS tracking services, your customers have to be knowledgeable of this and recognize what to expect upon downloading your app. Users are more likely to opt-in if an app’s messaging explains the advantages of having their vicinity tracked.
3. Retarget and retarget – Retargeted commercials boast a click-through charge that’s 10 instances higher than show ads. Take this statistic and observe it in your geofencing cellular advertising and marketing strategy.
4. Limit Your Scope – Limit your geographic scope. You don’t favor having a geofence that is too large, or it will lose its effectiveness. The widely wide-spread rule is to keep your geofencing to a four- or five-minute tour radius (walking or driving).
5. Clear Call to Action – You’ll without a doubt desire to have a clear call to action that requires instant action.The reason geofencing is so effective is because you’re concentrated on folks presently in your demographic area—so give them a clear and instantaneous reason to stroll via your front doors.
6. Multiple Marketing Techniques – Make certain to utilize a couple of target advertising methods for fine results. Mix geofencing with content material marketing, remarketing, search engine advertising, show advertising, and video advertising and marketing in order to personalize and goal multiple, unique audiences. 


Challenges Of Geofencing

The benefits of using geofencing technology are many. However, there are few challenges confronted through the customers and the management. Here are a few

1. Geofencing is not 100% accurate. Some inaccuracies have been reported.
2. Privacy Concerns – As the customers need to reveal some of their records in order to avail the advantages of this technology, there is a scope of their information being saved by the so involved apps/companies
3. Irrelevant messages to incorrect persons – If outlets do not have a completely updated document of particular users, then other customers who are no longer applicable at that factor in time will get hold of communications that are not necessarily relevant to them.
4. Like any technology, geofencing has its bugs.
5. It can drain cell battery life real quick.



With the rising reputation of mobile phones, geofencing has turned out to be common. Once a geographic limit has been defined, the opportunities are seemingly infinite for what businesses can do in advertising, marketing and social media with this tech. This is why every business should strive to adopt this technology in 2022.


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Gladys is a marketing pro with years of experience in content marketing management. She enjoys strategic thinking to make sure all proposed marketing efforts are in line with company objectives and meet the desired success metrics. Her forte includes copywriting, art direction, and social media management. Specializing in brand activations and event promotion events, she approaches each campaign with an entrepreneurial mindset and a passion for growth. Outside of work, she enjoys spending quality time with her family and trying out new recipes.

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