Geofencing Advertising 101: A Beginner’s Guide to Location-Based Marketing

    skycentral.co.uk | Geofencing Advertising 101: A Beginner's Guide to Location-Based Marketing


    Geofencing advertising is a powerful tool in the world of digital marketing that allows businesses to target potential customers based on their location. It involves setting up virtual boundaries around specific geographic areas, such as a neighborhood, city, or even a particular building. When a potential customer enters the geofenced area, they can be served targeted ads on their mobile devices, making this form of advertising highly effective for local businesses looking to reach nearby consumers.

    How Geofencing Works

    Geofencing technology uses GPS, RFID, Wi-Fi, or cellular data to create virtual perimeters that trigger actions when a mobile device enters or exits the specified location. These perimeters can be as small as a few feet or as large as several miles, depending on the needs of the business. Once a device crosses into the geofenced area, it can receive push notifications, targeted ads, or other location-based content from businesses within that area.

    Benefits of Geofencing Advertising

    One of the major benefits of geofencing advertising is its ability to target consumers at the right place and the right time. This allows businesses to reach potential customers when they are most likely to make a purchase, such as when they are near a storefront or attending a local event. Geofencing also allows for personalized and relevant advertising, as businesses can tailor their messages based on the consumer’s location and behavior.

    Types of Geofencing Ads

    There are several types of geofencing ads that businesses can utilize to reach their target audience. One common type is the “geo-conquesting” ad, which targets consumers who are in close proximity to a competitor’s location. This can be an effective way for businesses to steal customers away from their competitors by offering special promotions or incentives. Another type is the “geo-aware” ad, which is triggered when a consumer enters a specific location, such as a retail store or restaurant. These ads can be used to promote in-store specials or drive foot traffic to a business.

    Best Practices for Geofencing Advertising

    To effectively use geofencing advertising, businesses must carefully consider their target audience and the locations where they are most likely to be. It’s important to set up geofences in areas that are relevant to the business, such as near the physical location of a storefront or in areas with high foot traffic. Additionally, businesses should ensure that their ads are relevant and engaging to consumers, offering valuable incentives or information that will entice them to visit the business.

    Challenges of Geofencing Advertising

    While geofencing advertising offers numerous benefits, it also comes with its own set of challenges. One of the main challenges is privacy concerns, as some consumers may be wary of having their location tracked for advertising purposes. To address this, businesses must be transparent about their geofencing practices and obtain consent from consumers before targeting them with location-based ads. Additionally, businesses must be mindful of the potential for ad fatigue, as bombarding consumers with too many location-based ads can lead to annoyance and a negative perception of the brand.

    Measuring the Success of Geofencing Campaigns

    To gauge the effectiveness of their geofencing campaigns, businesses can use various metrics to track the impact of their location-based advertising efforts. These metrics may include foot traffic at the physical location, the number of click-throughs on geofenced ads, and the conversion rate of consumers who were served a targeted ad and then made a purchase. By analyzing these metrics, businesses can determine the ROI of their geofencing campaigns and make adjustments to improve their effectiveness.


    Geofencing advertising is a powerful tool for businesses looking to engage with their target audience in a highly targeted and personalized manner. By leveraging the technology of geofencing, businesses can reach potential customers when they are most likely to make a purchase, and deliver relevant, location-based ads that drive foot traffic and increase sales. With careful planning, effective targeting, and a focus on delivering value to consumers, geofencing advertising can be a valuable addition to any digital marketing strategy.