What is Geofencing Marketing? How to Do It?


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The speed of world evolution has increased significantly because of advanced technology. As a result, today, things are getting changed daily.

The same applies to the marketing field. As technology develops, so is the marketing world incorporating the latest changes and trends.

Geofencing marketing

Geofencing is a recent development in the marketing field, which defines marketing in a completely new sense. If you want to know how and why you should choose geofencing marketing, you are at the right place.

Here we will discuss what is geofencing marketing and its implications.

What is Geofencing Marketing? Core Concept 

As you can guess from the ‘geo‘ word, this is related to spatial features in marketing. Well, your guesses are correct. Geofencing marketing differs from traditional marketing because it focuses on geographically accessible people.

However, this is a simple answer to what geofencing marketing is, and there is more to it. 

Earlier in traditional marketing, the focus was on reaching a mass of people, even globally, to maximize the approach. In this way, marketers show relevant ad campaigns to their target customers.

What is geofencing marketing

This is where geofencing marketing differs from traditional marketing. In geofencing, a particular field is fenced for marketing purposes, and marketers only focus on customers in that area.

They will initiate ad campaigns and other policies to attract customers in that specific area to maximize their lead generation. In this form of marketing, a virtual boundary is set up around a focal point, and a push notification is sent to it whenever a mobile pass that point.

A company can advertise its products to anyone who crosses its focus area. In short, geofencing marketing uses a person’s spatial information to advertise.

All the techniques used in geofencing marketing require GPS technology and radio frequency.

Why did Geofencing Marketing emerge?

After answering what geofencing marketing is, now a simple question that will strike your mind is why geofencing marketing emerged. The answer is pretty straightforward for this question.

Although we have had GPS technology for decades, its use for advertisements has gained momentum only recently. Why? Because there are good reasons for it.

Why geofencing emerged

Firstly marketing strategies must evolve with time and incorporate the latest changes. Second, traditional marketing requires time, money, and effort. And in proportion to the resources used, the result could have been more satisfactory.

Thus, plenty of resources could have been spent without getting the required results as Cross-Channel Marketing.

Also, marketers are looking for unique ways to minimize the resources and augment the results. Marketers look forward to such methods to reduce costs and increase lead generation in marketing.

Geofencing marketing offers them all these things, which is why marketers use it today.

Why is Geofencing Marketing useful?

In the above section, we have discussed geofencing marketing and how it emerged. Again, you can ask if choosing it over all other marketing strategies is necessary.

Well, the reasons for doing so are as follows:

Advantages of geofencing marketing

1.    Focus on local sales

To understand this in a better way, first, let’s take an example. You will want to attract customers from nearby areas if you are a restaurant owner, and it will be your prime focus because the nearby people will be your potential customers.

However, people from another country or city will be someone other than your potential customers. So, you can focus on them less than you need to on your local customers.

Geofencing marketing helps in that only. Whenever a person that can be your potential customer reaches a certain point near your restaurant, he will get your business as a suggestion, which will help you enhance your local sales.

2. Time-saving

In the geofencing form of marketing, you only need to pay attention to your potential customers. So, you don’t need to formulate marketing strategies for people worldwide.

Also, you know your target audience, which is your local people, and what they are looking for. Thus, you can focus on deriving those services they want instead of wasting time on advertising.

Hence by using the geofencing model, you can save your precious time and concentrate on other things.

3.    A scope for personalization

You can personalize your services when you know your target audience and your locality. The geofencing method uses data collection to provide relevant ad campaigns, and thus you can personalize your advertisements and product promotion.

4.    Budget-friendly

Geofencing marketing with time also saves you money. In traditional marketing, you need to pay even for those who are not interested in your business and are not your potential customers.

However, in geofencing, only the potential customers are considered, and the ad campaigns only focus on them. In this way, you need to waste your resources for nothing.

Things to Keep in mind

You need more than just knowing what geofencing marketing is; you need more. To get the most out of it, you need to focus on some points, like,

Geofencing marketing

  • First, you are collecting data from your nearby people. And nowadays, the laws regarding data privacy are becoming very strict. So you need to make sure that you use only the spatial information of customers and not any other confidential data.
  • You need to ensure that you make your data collection policy transparent so that your customer can trust and be with you for a long time.
  • Although geofencing helps you advertise in front of your potential customers, only you need to conduct research. Before setting up your geofence, this is a step where you must collect data on the area’s demographics.
  • This will help you understand what people seek in your locality.

When working with demographics, you must decide what geofencing you will use. As mentioned, there are many ways to geofencing marketing, so you need to select one.


What is an example of geofencing marketing?

There are many examples of geofencing marketing. For instance, a café can notify people crossing its geofences about the offers that it is offering.

It will leverage the potential customers to café, and in this way, it can increase its sales.

Is geofencing worth trying?

Yes, well, there are many reasons why geofencing is worth trying once. The results it offers are great, time-saving, affordable, and targeted.


The above sections discussed geofencing marketing, how it emerged, and its benefits. 

Whether it’s marketing or any other corporate sector, everything changes quickly. With its benefits, geofencing marketing provides businesses with a new way to advertise and augment their sales. Now with the help of geofencing, they can focus on their target customers, save time and resources, and personalize their promotion campaigns.

Geofencing requires data collection that can further help in analyzing. This differs significantly from traditional marketing, where various analytical tools are used. While setting up geofencing, a wide range of data is collected, like how many people responded to the push notifications and how much time they spent counting a few.

Thus, businesses can work on their products and services based on the data collected and improve their ad campaigns.