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How Geofencing Enhances Business Outreach


April 9, 2024


6 mins



Mapping Your Market: How Geofencing Enhances Business Outreach In today's digital world, businesses face a constant challenge: reaching the right customers with the right message at the right time. Classical marketing methods like billboards and TV ads can be costly and often reach a broad audience that may not be interested in what you offer. This is where geofencing comes in. But how does geofencing work? Why should you care? And how can it enhance targeted marketing efforts? Let's explore the benefits of geofencing and learn the best practices of geofencing marketing.  

What is Geofencing?

Imagine drawing an invisible boundary around a specific location, like your store or a competitor's location. Geofencing is a technology that uses GPS, cellular data, or Wi-Fi signals to create virtual fences around real-world areas. When a mobile device with location services allowed enters or exits this geofence, it can trigger a pre-programmed action, such as sending a targeted advertisement or promotion.

Geofencing Examples

Uber draws invisible fences around busy places like airports. When you land at the airport and walk out, your phone might be inside one of these fences. Knowing this, Uber can send you a message saying they have drivers nearby ready to take you wherever you want to go. Uber uses geofencing technology extensively for simple reasons, such as more rides, faster pickups, and convenience.

Arlo is a home security company that wants to make things easier for you. They use geofencing, which is an invisible fence around your house made with your phone. When you leave the house with your phone, Arlo can automatically turn on your security cameras. When you come back home, Arlo can turn them off again! This saves you the hassle of remembering to turn them on and off yourself.

Why Use Geofencing for Business Outreach?

Geofencing offers a powerful and innovative way for businesses to link with potential customers who are already in their target market. Here are some key benefits:
  • Hyper-local Targeting: Unlike traditional marketing methods that cast a wide net, geofencing allows you to target customers with precision. You can define your geofence to confine specific areas like competitor locations, shopping malls, sporting events, or even your store. This ensures your message reaches the most relevant audience, maximizing the point of your marketing spend.
  • Increased Engagement: By targeting people who are already near your business or a location relevant to your product or service, you're more likely to capture their attention and spark interest. Think of it as a restaurant sending a discount alert to hungry customers entering a nearby mall – that's geofencing.
  • Personalized Marketing: Geofencing is more than just ads. You can customize your message based on the location data. Like, if you're near a gym, they might remind you to work out or give you a discount if it's not busy. This makes people feel closer to the brand and want to return.
  • Measurable Results: Geofencing helps businesses know if their ads are working. They can see how many people saw the ad, how many clicked on it, and if they visited the store later. This data provides crucial insights into campaign effectiveness, allowing you to refine your strategy for future success.

Best Practices for Effective Geofencing Campaigns

While geofencing offers immense potential, it's crucial to use it strategically to maximize its effectiveness. Here are some best practices to keep in mind:
  • Set Your Target Audience: Who are you trying to reach? Understanding your potential customers is essential for creating a successful geofencing campaign. Consider factors like demographics, interests, and location. Choose the Right Locations: Select geofences that are suitable to your target audience and business goals.
  • Craft Compelling Messages: Your message needs to be clear, concise, and relevant to the location. Highlight a special offer, promote a new product, or simply remind customers about your business. Think of it like a mini billboard that appears directly on a potential customer's phone – grab their attention quickly and make them want to know more!
  • Respect User Privacy: Be transparent about how you're using location data and obtain user consent before sending geofenced messages. Many users are privacy-conscious, so building trust is essential. Clearly explain the benefits of opting into location-based marketing and assure them that their data will be used responsibly.

The Future of Geofencing

Geofencing technology is constantly evolving, offering exciting possibilities for businesses. Here's what to look forward to:
  • Integration with Other Marketing Channels: Geofencing can do more than just show ads on phones. It can also help send personalized emails, give rewards in loyalty programs, or even send messages on social media. When all these things work together, customers feel more connected and committed to the brand.
  • Advanced Location Targeting: As geofencing gets better, it can target people even more precisely. For example, it could know which part of a store someone's in and send them messages just for that area. This means ads can be customized to each person's wants and likes.
  • Beacon Technology Integration: Beacons are these little devices that send signals to phones nearby. When you pair them with geofencing, you get precise location zones. For example, a museum uses beacons to make exhibits interactive or give info to visitors near certain displays. This combo opens up tons of options for location-based marketing strategies.


Getting people to notice your business online is tough. Geofencing is like a shortcut, it lets you send messages straight to people's phones when they're nearby, reminding them you exist. It's a clever way to get more customers, and it works great!

Frequently Asked Questions

Q: What is geofencing used for? A: It helps businesses send special messages to people when they're near certain places, like stores or events, making marketing more personalized. Q: What are geofencing platforms? A: Geofencing platforms like Google Maps or GeoQpons use GPS to set virtual boundaries, triggering actions when a device enters or exits the designated area. Q: What is the cost of geofencing? A: The cost of geofencing varies based on factors like platform (Google, Facebook) and size of the targeted area Q: What is the difference between GPS and geofencing? A: GPS shows where you are, while geofencing creates invisible lines around places to send messages when you enter or leave those areas. Q: How can you implement geofencing? A: You can set up by using technology to create boundaries around places, like shops or restaurants, and then send messages to people nearby using platforms like Google Ads or social media. Q: Is geofencing marketing worth it? A: Yes, because it helps businesses talk to customers when they're close, which can make them more likely to visit and buy things, boosting sales and building loyalty.