What is Geofencing?

Geofencing is the use use of a geofence, which is a virtual perimeter for a real-world geographic area. In other words, the use of RFID or GPS technology to create a virtual geographic boundary, which enables softwares to trigger a response when a mobile device enters or leaves a particular area.
Geofencing is used in marketing to trigger a targeted marketing action (such as a text, email, social media advertisement, app notification)

One example is, a young man walks by a Nike store and receives a notification saying: “Today only! Buy 1 pair of sneakers, get 1 free tshirt!”

Geofencing is a location-based technology that creates virtual boundaries around specific geographic areas using GPS, RFID, Wi-Fi, or cell data. When mobile devices enter or leave this defined zone, geofencing triggers predetermined actions, such as sending notifications, ads, or alerts.

Geofencing technology empowers marketers and app developers to engage users based on their real-time physical location, thus offering powerful ways to deliver contextually relevant content.

Geofencing offers mobile marketers an excellent tool for targeting consumers with hyper-localized advertising, such as retail stores using it to offer promotions to shoppers near or in their stores. At the same time, app users could receive notifications about discounts at nearby restaurants via geofencing notifications – driving foot traffic while improving customer engagement.

 

How geofencing works

Geofencing technology is relatively straightforward. Businesses or app developers establish an area, often called a “fence,” such as an individual building or, in some cases, an entire city. When users’ devices enter or leave this area, an action programmed into this geofence can trigger. These actions range from customized notifications to in-app content updates designed to engage the user.

 

Geofencing’s benefits in mobile marketing

Personalization: Geofencing allows brands to deliver highly relevant content based on an individual user’s location, creating an experience tailored specifically for them and increasing the likelihood of engagement.

Increased foot traffic: By offering promotions or sending offers that encourage customers to visit physical locations, businesses can drive increased foot traffic, which can increase offline conversions and enhance offline conversion rates.

Data insights: Geofencing provides marketers with valuable data about customers’ behavior and preferences. Marketers can assess patterns such as visit frequency or dwell time to optimize campaigns more effectively.

Real-time engagement: Geofencing allows marketers to engage with users immediately when it matters most, increasing chances of successful conversion.

 

Applications beyond marketing

Geofencing has many uses beyond digital marketing. For example, it is utilized by industries including logistics (to monitor vehicle movements), retail (in inventory control), and security (by creating restricted zones).

Geofencing adds value to marketing campaigns by offering localized, real-time interaction between brands and users, making it an essential tool in today’s mobile-first environment.