Geofencing as a Marketing Strategy

how geofencing works by building an invisible fence

how geofencing works for a business with map and description

How many times have you thought about a cost-effective and practical advertising tool which can help you gain customers, boost revenue, and build your business? Probably countless, right?

Well, we have The Solution for you and it is called Geofencing.

First time hearing about this?  No worries, we will tell you how to use geofencing in your marketing strategy.

What is Geofencing?

Nowadays we are living in an era where people spend most of their time on their cellphones. This fact or we can even say the usage of mobile phones, literally revolutionized the way we are living.  It also opened new marvelous doors when talking about marketing and engaging mobile users.

You are probably guessing, it’s where Geofencing comes in.

Geofencing is a powerful marketing tool that is all about location! Geofence marketing is all about utilizing the real-time location data in order to target users and potential customers within an established geographic area, or simply said, a fence. Geofencing can be versatility configured meaning versatile pre-programmed actions such as mobile targeted advertisements on social media, apps and the customers mobile web browser.

Make no mistake by underestimating this location-based marketing tactic, location data is a mysterious beast! Learn how to tame it, and you are looking into incredible results. Geofencing will allow you to showcase the right ads to the right people whenever they are in real-time. Imagine it as an invisible fence around a location of your choice which will welcome certain suitable people into the world of your business.

Don’t be scared to grab your customer’s attention and create a unique customer’s journey. Be creative and engage them uniquely and memorably.

How Does Geofencing work?

Now that we’ve “tackled” your brain with this extraordinary marketing strategy, it is only fair to explain how it actually works.

When talking about Geofencing, in order to make use of it, the first step is setting up the virtual boundary (the geofence) around a particular location.  This step can be easily done by a developer or an administrator.

Thanks to the built-in mobile services such as GPS and cellular data, each mobile phone radiates signals which give out the user’s location. With the help of these location-based services and the virtual boundary (the geo-fence), when someone enters or exits the specific area a pre-programmed response is triggered.

However, one of the most used and most practical options are display ads which are delivered to your potential customers mobile device.  This means it is a crucial step to connect your business with the customer. This way, you will be able to deliver relevant notifications to your users within the ranges of your geo-fence. Geofencing is practical not only when delivering promotional data to your users, but it can also provide you with relevant analysis which will help you measure how effective your campaign was.

If you are on the verge of whether or not to try or skip this location-based marketing, we are here to provide you with a few must-read benefits which will surely “push you over the edge”.

Try something new and actually seize the tremendous potential to engage your customers with targeted campaigns.

Here are the top three advantages that come with this type of marketing:

how geofencing works by building an invisible fence with map and multiple locations

1.    Better Targeting and Return of Investment

Personalizing your marketing messages based on the location equals narrowing down and targeting specific people. This will allow you to target the people who are relevant to your business.

For example, a person walking into your geo-fence (your bakery is a hundred meters away), you are sending this person a targeted display ad to try out the freshly baked cookies or a promotional offer. Who can say no to an offer like this? This is definitely a smart move or we can even say a bite. The chances are most of the people will come for the promotional cookies but buy something along the way. In translation, you are sending advertisements directly to a person who is near meaning greater chances to come along and Geofencing will provide you with this. This will keep you at the customers top of mind awareness for the next month.

Because of the razor targeting, Geofencing as a marketing strategy will allow you to have a higher return of investment too. Geofencing will allow you to outside the box and engage with your customers in a non-traditional way. Think about displaying coupons, promotions, and limited-time offers which will lead to increased sales from local customers.

2.    Deeper Metrics and Better Data

Another great advantage of this strategy is the access to a lot of data which equals valuable insights.

Insights about patterns of behaviors of your customers which will allow you to directly control the outcome/the sales. Over time, you can learn about what your customers want and need, and deliver even something better to them. You could also learn about which stores perform better and why. Easily getting the feedback you need will allow you to grow your business and evolve.

 Yes, Geofencing is as powerful as it sounds.

3.    Efficiency and Creative Engagement

Try focusing on quality over quantity and on creativity and raising brand awareness.  Instead of using your location only, you can be innovative and choose locations that are related to your business. For instance, if you own a gym, you can use Geofencing marketing in the nearby park where people are running and exercising and offer them a winter-suitable package.


The truth is geofencing as a  marketing strategy has taken the world by storm.  Geofencing is that it is a powerful advertising tool that allows businesses to personally target customers in strategic geographical areas of interest.

Although Geofencing as a marketing strategy is useful for large companies too, when talking about small businesses – it is remarkable. It can help increase revenue, the number of customers, and raise brand awareness!

Ask us more about this today!


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