What is Geofencing and How Exactly Does it Work?


86% of senior marketers want to create a cohesive customer journey for their customers. Learning how to connect your marketing strategies will help you guide consumers from one point to the next. Then, you can guide those consumers to become paying customers!

In order to create a personalized experience, you need to know as much about your target audience as possible. 

More companies are asking, “What is geofencing and how can it benefit my business?”

With mobile geofencing, you can use consumer insights to drive more conversions to your business. Better yet, you can attract those customers before they drive right by your store!

How does geofencing work exactly, and what can it do to improve your local marketing strategy? Keep reading to find out!

What Is Geofencing?

First, let’s ask the question on everyone’s mind: what is geofencing?

Geofencing relies on global positioning signals (GPS) and radio frequency identification (RFID). Using geofencing technologies will help you define a specific geographic boundary. Then, you can use that boundary to determine a virtual zone to focus your marketing efforts on.

Once a consumer and their mobile device enter that virtual zone, they’ll trigger a notification. These notifications include text messages, emails, and mobile app notifications. 


You can determine which customers you want to focus on by including and excluding specific demographics. These demographics include age, gender, marital status, and household income. 

Geofencing is an ideal marketing strategy if you want to capture consumers within a single area. Unlike geotargeting, geofencing allows you to target customers with more accuracy. 

For example, a retail store might want to use geofencing to capture potential buyers when they walk by the store. However, the store won’t want to target anyone. Instead, they can use demographics to focus their geofencing ads on the people most likely to become customers.

Focusing your ads on your target audience will help optimize results.

You can also use demographics to create specific buyer personas. Then, you can create personalized ads to send different messages to different personas. These personalized messages will ensure you appeal to each unique persona.


You can also use geofencing to engage customers who are within a local range.

This marketing strategy is great if you want to encourage immediate traffic to your store. Then, you can turn those in-store visitors into paying customers.

When your customers enter your geofenced area, the ads will display on their device as they’re browsing. This will help you optimize opportunities to engage customers who are already in the mindset to shop. 

Remember, these ads will only display when a customer enters your geofenced area. This will help you gather data about the consumers who are exploring your location. Then, you can use your ads to keep customers aware of local deals or about how far they are from your business. 

It’s okay if a geofencing ad doesn’t get you an immediate lead. In fact, you’ll still learn something. 

For example, you’ll learn where the consumer was when they received your message. How far were they from your store? You’ll also learn what time they entered the boundary, allowing you to optimize the timing for your ads.

Geofencing will help you learn more about the consumer’s mindset, too. 

Using this information, you can improve your ads and optimize your marketing efforts. 

What are the Benefits of Geofencing?

Now that we’ve answered the question “what is geofencing?” let’s discuss how it can benefit your business. Here are five ways mobile geofencing can give your marketing efforts a boost.

1. No Waste

Where are you spending most of your marketing dollars? Traditional marketing strategies, such as billboards and flyers, won’t let you optimize your timing. After all, most people toss a flyer aside and forget all about it.

This could cause you to waste time, effort, and most importantly money on your advertising efforts.

Instead of wasting your time, focus on the people most likely to enter your shop. Then, time it right so you can display your ads when they’re near your store.

Mobile geo fencing ads, allow you to time it right. You can focus on targeting your ads on the people who are already nearby. Then, you can attract locals who are most likely to become customers. 

Then, you can stop wasting your advertising spend on strategies that aren’t working. Instead, you can focus your advertising budget where it’s most likely to generate results.  

2. Keep Up with Competitors

What marketing strategies are your competitors already using? If you’re not keeping up with the latest geofencing technology trends, you could fall behind the curve.

Geofencing advertising allows you to market your business to customers before your competitors can.

Remember, geofencing ads appear when customers walk by your shop. This timing will make you more likely to encourage a sale. You’ll improve foot traffic to your business and build brand awareness. 

Make sure to design your ads so they appeal to your customers. Let them know you’re nearby and able to solve a problem they’re facing. By focusing on the benefits of choosing your business, you can appeal to your target audience.

You can also use your unique value proposition to stand out from the competition.

Don’t forget to brand your ads as well. 

Finding the right balance between design and messaging can help you appeal to your target audience. Then, you can boost your business one ad at a time!

3. Target Your Mobile Audience

Today, we’re accustomed to seeing people with phones in their hands. In fact, 95% of Americans now own a smartphone. Creating geofencing ads gives you an opportunity to reach those customers. 

By using geofencing ads, you can appear in front of customers who are nearby.

Every person who walks by your store can become a potential sale.

What is Geofencing?: Putting Your Company on the Map with Geofencing Ads

What is geofencing? It’s an opportunity for you to step in front of customers and draw them to your business. With geofencing, you can put your business on the map and get in front of your competitors.

Searching for more ways to build your business? Explore our latest Internet Marketing articles today! 



James Williams
James is our Lead Content Publisher here at Feeds Portal. He has worked with many top websites over the years, including BuzzFeed.

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