What is Geo-Fence Marketing?

What is Geo-Fence Marketing?

Have you gotten into your vehicle after work when an instant traffic report for your commute home suddenly pops up on your cellphone?  If this is not a phenomenon you’ve experienced yet, you will. Look for useful insights and numerous other types of ads to start showing up on your mobile device out of the blue.

It’s called geo-fence marketing or geo-targeting. Studies demonstrate this locally optimized way of reaching customers boasts double the click through rate of normal mobile advertising. If you are a big or small business owner, you need to get on board with this marketing marvel immediately.  It’s an easy and affordable answer to engage your customers and grow your bottom line.

Mobile marketing has been taken to another dimension with geofencing/ It enables companies the ability to advertise specifically to potential customers within a specific geographic location.

Technologies that enable Geo-fence Marketing

Geofencing builds a virtual boundary around a business location utilizing a blend of technologies, including:

  • Wi-Fi

WIFI is a standard feature in all smartphones, giving it a good potential reach. Customers need to keep their Wi-Fi on which will keep them updated with the local sales and promotions.

  • GPS

The Global Positioning System is a network of satellites orbiting the earth that can triangulate an individual’s location to an accurate degree.

  • Radio frequency identifiers

Bluetooth technology contains small computer chips that use radio waves to connect with one another.

  • Beacons

It works with location services in smartphones and alerts applications when you approach or leave a location. It uses a Bluetooth signal that can tell when you’re close to a beacon, like a checkout counter in a retail store.

While geofencing has been around for a sometime, the popularity of smartphones and mobile devices presently makes it extraordinarily valuable as a marketing tool for business owners.

Geofencing offers universe of potential outcomes for mobile users. From interactive shopping lists to home security systems, garage door openers, automatic coffee pots, limited-time offers for your favorite restaurant, or a suggestion for a new restaurant haven’t tried before. For marketers, the focus is on push notifications and mobile advertisements that can be tied to a business location.

There is no uncertainty that hyper-targeted, location-based marketing is going to be the next big thing in digital marketing. Let’s have a look at the benefits of geofencing for your business:

Benefits of Geofencing for Businesses

Geofencing is a powerful tool, perhaps one of the greatest beneficiaries is online marketing, since it enables marketers to take their efforts to a new, localized level. Here are some of the benefits of marketing with geofencing.

  1. Improve Local Sales

Local optimization is greatly profitable for most businesses. If you want to enhance your local performance, you must investigate geofencing. Since it is a location-based system, you can target local customers in a characterized geographic zone. You send promotions via push notifications to customers in your area and easily change promotions each day or have limited-time offers that will prompt increased sales from local customers.

  1. Increase Analytics and Tools for Metric Analysis

Local sales can be measured if customers are coming in with your promotions from geofencing, there are several metrics you can measure. Sales, how long a customer is in your store, and how frequently they visit your business. All of this can be significant data that adds depth to your analytics and helpful in expanding your business.

  1. Give Personalization to Customers

Geofencing enables you to gather data to personalize customer offers. It gives you demographics about the local population, including what sort of offers interest them and get them in your store. If you look at purchase history and understand that local customers prefer a certain product, you can alter your promotions accordingly.

Types of Advertising & Consumer Communications that utilize Geo-fence Marketing

  1. Display Advertisements

The use of geofencing in display advertising is being used most commonly by the well-known organizations. The ads are released in a controlled way to people based on their specific, real-time location, hence letting you target them better.

  1. SMS or Push Notifications

Geofences can directly communicate with a device based on its location. When the mobile device owner gives their authorization, the marketer can send an SMS or a push notification via their mobile application. This message could be a marketing message or general alerts for activities including deliveries or pickups like in case of e-retailers or food delivery services.

  1. Content

The media industry is making good utilization of geofencing technology and the creativity of the media industry is being put to good use in delivering relevant content using geofencing.

  1. Social Media Advertisements

Social media ads can make good use of geofencing, use the location information to display suitable social media ads to the appropriate audience. This comes in especially convenient for platforms like Twitter and Facebook. On these platforms 80% of the users are interacting with the platform through their mobiles.

Examples of Brands using Geofencing

  1. North Face uses geofencing to boost sales with innovative alerts
  2. BMW uses geofencing to offer quality customer service
  3. Walgreens uses geofencing as a methods of customer retention
  4. Uber uses geofencing for proactivity
  5. Subway uses geofencing to text consumers discount food coupons when they were near a location.
  6. Taco Bell reaches the right crowd with its geofence


Geofencing is powerful and affordable way to reach your consumers.  Your growing business can easily learn to keep up with the big brand competition. By paying attention to how their marketing experts are embracing geofencing into their mobile marketing plans it can give you great insights to what your business can achieve.

Geo-fence marketing is affordable. Although somewhat limited, neither Facebook nor Google Ads charges any additional expenses to set up geofencing campaigns. You add more specific targeting layers to local online marketing campaigns, which boosts performance. For local businesses, the more locally targeted your message is, the better it will perform when your customers are nearby.

While using FB or Google Ads can be a solution, Business Nucleus can provide more specific Geo-targeted ads to any location you choose. This allows for better radius targeting then you will achieve with Google or Facebook.

Business Nucleus is a premier provider of Geo-Targeted and Geo-Fence Marketing campaigns. Visit our Geo-Fencing Marketing Page or contact us directly for details at [email protected]

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