What is Geofencing? – Geofencing is a marketing tactic that utilizes the Device ID on a cell phone to locate and identify a target audience. Geofencing can be utilized to target competitor locations and/or locations where your target audience would be located. Once the geofence is enabled and the Device IDs are collected advertisements will then be shown to those cell phones. Geofence Example: A protein powder company geofences every gym in the United States. The Device IDs of anyone who entered those gyms are collected and targeted with advertisements for the protein powder. Geofence Example (Target Competitors): A new gym just opened in Los Angeles, California. The new gym geofences every gym within a 30-mile radius and shows advertisements for 10% OFF new memberships. This campaign enables the new gym to target an exact customer match, show a more competitive offer than the competition and effectively grow by targeting existing businesses within the same industry. Geofencing is a feature in our software program that uses the global positioning system, or the GPS, of a mobile device to define geographical boundaries.

Geofencing is a tactic that can be used to put targeted display ads in front of users based on a very specific geographical boundary or boundaries. BENEFITS: 

9 Basics a Marketer Needs to Know

  1. What is Geofencing?

Geofencing is use of a virtual perimeter using Wi-Fi, GPS, or RFID (radio frequency identification) to trigger a response on a mobile device, like targeting consumers for advertising. In advertising, when a mobile device enters this “virtual fence,” the technology can be used to automatically trigger display ads or SMS messages, directly to the user’s smart phone via apps. And, you can define an amount of time, usually up to 30 days, after a prospect enters your Geofence to target them with mobile advertisements.

  1. What is a Geofence?

Now, what is a Geofence, you ask? A Geofence is a virtual perimeter marking a real geographic area. You can see it as a virtual fence. The area it surrounds can be as big as a city, or as small as one building. Geofences can take different shapes. For more straightforward use cases it could be round. For complex situations, marketers could build polygon shaped Geofences.

  1. What can marketers do with Geofencing?

On average, a mobile app loses 96% of its users within a year of its initial download. Keeping users engaged is difficult – due to the overload of commercial messages they receive, users filter out the noise. They only respond to what’s really relevant to their current mood and setting. Geofencing can provide a lot of insights about user’s context and surroundings, which can help marketers, adapt their communications accordingly.

It can help marketers:

Collect location insights about user’s offline behaviors for audience segmentation, personalization, retargeting, competitive intelligence, and online-to-offline (O2O) attribution.

Send location-relevant content to mobile users based on their current or recently-visited location, in order to drive their engagement with the app.

4. Here are some examples of how marketers in various industries already get creative with Geofencing:


Sending promotional messages as shoppers pass by a store to drive visits.


Proving the ROI of coupons using location data to track store visits initiated by coupons.


Retargeting users that have visited a car dealership (yours or competitor’s).


Geofencing international terminals within international airports


Geofence feeder highschools and community colleges.

Coffee Chain

Geofence other coffee stores within a specific radius.


Geofence locations where customers visit prior to visiting restaurant.

Online Retailers

Geo-coquesting competitor’s locations with deals to lure customers away.

  1. What location technology is used for Geofencing?

The general functioning of Geofencing is that it uses location services to detect a user’s device within the predefined zone – the Geofence – in order to trigger a notification or track visits. Now, which location services are used to do this can vary depending on the provider? Geofencing can use:

  • Cellular
  • Wifi
  • GPS

While Cellular and WiFi are recommended for their reliability, GPS-based solutions are not. They are accurate, but this technology has proven to be extremely battery-draining (remember those times you used Google maps to get somewhere and ended up with a half dead phone? Yeah, so do us). If you’re looking for a Geofencing provider, check out this list of most important features a Geofencing provider should have.

It is important to note that your app users will have to opt in for location services in your app for Geofencing to work. Similarly, your users can later opt out. Read our blog on convincing users to opt in if you want to know how to make sure as many users as possible give your app permission.

  1. How does Geofencing compare with beacons and geotargeting?

Geofencing, geotargeting and beacons are all used for location based marketing. Different providers choose to rely on either one or several of these technologies. However, the difference lies in the way they generate location data and their target range. The table below addresses the differences between the technologies and highlights how they are best used.

  1. How Does One Create a “Geofence,” Exactly?

With Geofencing technology, a map is used to draw a boundary around the area(s) you want to target consumers in, such as your own business, a competitor’s business, a common area like a park or shopping center, or even a specific event.  Using the Geofence platform, shapes are created around the areas you wish to target to create your Geofences.

  1. How Does the Geofence Reach Your Consumers?

When someone enters and leaves your targeted perimeter, an action is triggered, like an ad that draws consumers to click on your ad or walk into your business.

For example, a donut shop sets up a Geofence around a police station to advertise their tempting coffee and donuts to its target consumers. The technology can now display ads to the people in the police station, like a buy one get one free coupon, to encourage them to buy breakfast for the whole station.

  1. What are the Benefits of Using Geofencing Ads?

By utilizing Geofencing to advertise your business, you are able to target your audience based on their proximity to your business or competitor locations and reach local consumers when they’re on their smart phones. This helps pinpoint an exact target audience. This kind of percision in advertising helps to minimize wasted ad impressions.

• Unlimited geofences • Customizable • Targets users within the geofence …And we can target the consumer for up to 30 days after they have left the geofence. HOW IT WORKS:

TARGET YOUR OWN LOCATION: CUSTOMERS IN LOCATION ARE TARGETED: SHOW ADVERTISEMENT TO INCREASE PURCHASES: TARGET LOCATIONS WHERE YOUR CUSTOMERS ARE | TARGET YOUR COMPETITORS’ LOCATIONS: Geofencing is a great way to reach the right person, at the right time, with the relevant offer. In marketing we refer to this as the 3 R’s. When a business is able to accurately identify the 3 R’s the marketing campaign will have the highest likelihood of success! Learn more about Geo Fencing today!

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