How To Grow Your Business With Geofence Marketing In 2021 [Ultimate Guide]

upqode | Jun 29th, 2021

Does your business serve people in a particular location? You should know that targeting the right people for your marketing message at the right time is very important. However, it can also become a challenge as well. The good news is that with the increased use of smartphones, this essential yet challenging task is becoming easy, allowing you to target the right people at the right time. And this strategy is known as Geofencing Marketing. 

Do you want to know more about what is Geofencing marketing and how it can help the growth of your business? 

We’ve created this guide for you. Let’s dive right into it!

What is Geofencing Marketing?

Geofencing marketing, also known as geofencing advertising, is a new approach to marketing. It includes location-based marketing allowing organizations to send targeted advertisements to the target audience. 

Basically, it will enable you to connect with smartphone users in a particular geographic area that can include a live store, mobile applications, or even through mobile webpages. This gives you an idea about the people that visit a particular store or restaurant. So you can send them push notifications or SMS, as they were the only sort of advertising sent in the past. 

Investing in geofencing advertising can help one to create a very personalized experience for their customers present nearby by targeting with the right kind of ads. 

These geofence marketing campaigns highly rely on various technologies that include Wi-Fi, GPS, Bluetooth, and radio frequency identification (RFID), which allow it to identify the people in a particular location and then send them the advertisement. 

Previously something like this was not very imaginable, but geofence advertising has become famous and well known with the advent of new technologies. There are insights supporting geofencing advertising. 

Different industries happen to use geofence marketing very actively, and that is very helpful for them. 

That includes retail shops where the owners use the geographical location around their shops and even of their competitor’s locations to send ads to their potential customers.

Car dealerships want people to buy a new car from them by looking at the various deals that they might be offering. These are just some of the types of industries that use geofencing marketing, and there are many other industries using this technique. 

Where are the Geofence Ads Displayed?

There are two places where the geofence ads display. One is the internet browser, and the other is through various mobile apps. 

geofencing marketing

While using an internet browser, the individual using it is able to see the company’s advertisement on their screens. 

The second is through mobile applications. When people download mobile applications, they get a notification for any deal or promotion that the company might be running. Moreover, the people who play games also happen to play advertisements while playing. 

Time When the Ads are Displayed 

These specific geofence ads are shown to people when they enter a particular geofence area. However, it is possible that an individual might see an ad after they have left the geo-fenced area for up to thirty days while they are using an application. 

Reasons to Adopt a Geofencing Marketing Strategy

Adopting new technologies faster than your other competitors will always give you an advantage. It helps you make more impact than them. If you have not applied geofencing in your business, then below are the reasons why you should try and adopt this marketing strategy as soon as possible. 

To compete with your competitors

This should be one of the most important and top reasons you should adopt geofencing technology. 

Imagine if they have not implemented it yet, you then have a competitive advantage, but if they have and you have not, it is alarming. Use various powerful geofencing marketing tools to make your business grow and increase your brand awareness among your audience.

You can get the data from the users directly

To run your digital marketing campaigns through different geofencing marketing tools, it is essential to have the correct data to target them easily. 

However, the percentage of customers that are willing to give their data is very low. Still, on the contrary, with location-based data, customers are able to share it without resisting.  So when a good percentage of customers is ready to share their data with you, it is believed that they will get something in return, like coupons, exclusive deals, and alerts that can help you grow your business. 

You have your customers using the right tool 

For your various geofencing marketing campaigns to work, your audience must be using the right kind of tools. Now, that is possible as people are now actively using mobile phones. 

This can act to your benefit since you can share all the necessary data regarding ads on their smartphones which is the actual screen they are more focused on. Using other advertising tools can help get the message across, but you cannot miss out on this digital device which is extremely useful. 

Moving forward, we also discuss why companies should opt for geofencing marketing at all? Well, it is because it offers a lot of benefits to them and they are mentioned below:

Benefits of Using Geofencing Marketing 

Several benefits can be reaped by using geofencing marketing. From increased brand awareness to engagement, it can turn out to be very helpful when trying to grow the business revenue. It has undoubtedly become a part of every digital marketing agency’s work. 

Instant Advertising

This is a very notable benefit of geofencing marketing. As soon as a person enters a geographical location, they will get an instant advertisement of that particular brand and see an ad based on their physical location. 

Real-time data analysis 

Geofencing marketing helps provide real-time data analytics on the campaign and offers valuable insight that can help make noticeable changes to the geofence marketing campaigns. 

It also helps in Search Engine Optimization, and they can make the changes in the geofencing advertising campaigns as required.  

Provides with better Return on Investment (ROI)

When you target people in specific locations, considering that they already would be interested in your products and services offered, that guarantees you that they will make a purchase. 

This also means that not much persuasion will be required to make them buy your products or services. 

Moreover, while using geofencing marketing tools while creating geofence marketing campaigns, the marketers will not have to invest money in targeting areas and audiences where it is not required. It eventually increasing your return on investment.

Provides Better Engagement

It is presumed that the audience you are targeting for your ads is already interested in your brand. Therefore, a higher level of engagement is predicted. This ensures that a higher engagement will lead to increased conversion rates. 

More brand awareness

The more engagement you have and the more ads people see of your brand, the more likely they will be interested in doing business with you. Therefore, geofencing marketing is considered beneficial because of its location-based ads feature. 

It allows the brand to earn from increased engagement and conversion rates, more brand awareness leading to more sales. 


Now, we have talked about the benefits of geofencing marketing; specific geofencing marketing tips can help you improve the marketing campaigns that you create using different geofencing marketing tools. 

Geofencing Marketing Tips

We have now discussed the different benefits of geofencing marketing campaigns and how they can help one increase their business. There are, however, some tips that can be helpful for the companies while they plan out their geofencing marketing campaigns. 

Here are some of the most important tips to help you:

Ensure to set your parameters

This tip can be very helpful as it can help you be as precise as possible. First of all, set a proper parameter regarding how much of a geographical area you wish to cover.

Hence, you only have to spend that limited amount of budget instead of spending extra money on it. 

Create more local campaigns

Try creating more local campaigns. This means that geofence shows the best results when it is done targeting a small geographical area rather than a larger one. You might be targeting a smaller number of people, but at least they will be the ones genuinely interested in your brand.

Always make sure that you establish a targeted audience

Randomly showing people your advertisements is not going to help the brand. Instead, it will use up a lot of your budget, and most of your efforts will go to waste. The best way to handle this is to establish a targeted audience. 

Set up a filter based on the demographics and interests of your target audience. This is way more beneficial than wasting time and effort on other audiences. 

Ensure that you deliver the relevant content 

The content that you will be sharing with your audience will contain content and messages related to your brand, but try to create more geofencing digital marketing content more precisely and connect it with various events and days celebrated in the particular region. 

This helps to make your content stronger. 

Try using A/B testing in your geofencing marketing campaigns 

You might have created multiple ads and copies, and now you can use them and test on your target audience to see which content serves the best. Test with the difference in color, content, type of deal that you might be advertising. 

This will help you improve your content game and see what more can be done to make it better and eventually the best.

Marketing Analytics

Keep learning about your customers

If you want your geofence marketing campaigns to be successful, then the best thing is that you keep on learning more and more about your customers. Gather all the data you get and use it to understand more about your audience and their behaviors and buying patterns. 

Location will further specify for you about the interests and the kind of content and deals that your potential buyers might be interested in regarding your brand. 

Make sure to add a call to action

Adding a call to action to your marketing campaigns is very important. It helps people that are interested in acting immediately and increasing your sales. Moreover, it should be engaging and exciting to keep your audience’s interest and persuade them to take the right action that will support your brand. 

Types of Geofencing Advertising Techniques 

You want to send a message related to your brand to your potential customers but based on the different types of geofencing advertising techniques present, and you can use anyone of them to send the message. 

Display advertising

This is the most used technique of all the other techniques. Although big companies and brands majorly use display advertising, they are known to be very effective. They incorporate mobile locations and IP addresses into their geofencing digital marketing campaigns to show ads to people in a particular area. 

They are displayed on specific websites, so you can also align your ad, and they will be shown on certain websites according to the location. 

SMS geofencing 

SMS geofencing is when an SMS is sent out to the customers that urges them to take action. Usually, these actions encourage them to visit the online e-commerce website that you have maintained or visit the physical store to avail the various deals and offers you might have. 


Social media marketing

Social media advertising is also efficient since it uses location information to display social media ads to the audience. 

Since now, a large percentage of people are getting benefits from social media through their mobile phones. So now targeting them through social media is easy and convenient. 

Key Takeaway

Geofencing has undoubtedly become a robust marketing tool in digital marketing services that is helping brands to reach their target and complete the goals they want to achieve. 

Small and big brands are now using geofencing marketing to promote their products and services. It’s helping them to increase their reach and increase the rate of their conversions and return on investment. 

Filed under: Marketing

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