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  • Writer's pictureVikki Sicaras


What is geofencing?

Geofencing is a term referring to a “virtual geographic boundary defined by GPS or RFID technology” according to the Oxford dictionary. A geofence can best be described as an invisible fence, that when a mobile device crosses it, the geofence triggers a response. The geofence is essentially using virtual GPS points to trigger responses that will send alerts to mobile devices when a user enters or exits a geofence territory.

Geofencing can be used for a variety of reasons, including social media marketing, workplace time tracking, ridesharing services and nearby deals for retail and restaurants.

Businesses use geofencing technology to offer incentives to consumers in the area. An example of geofencing could be a business setting a geofence around a competitor encouraging shoppers to go elsewhere for a better deal. Geofencing for marketing can allow businesses to target consumers from a mobile device at colleges, events, trade shows and more. Studies have shown that geofencing alerts are effective and up to 53 percent of consumers say they have received a geofence alert with an offer or discount and acted on it.

How does geofencing work?

Geofencing is a location-based marketing strategy that typically works by drawing a geofence around a competitor, event or anywhere you think a target customer might visit. When the target customer enters the geofence, their device gets stored in a database, and when the customer uses the internet or social media on their devices, they will see your ad.

Geofencing targets your audience by showing them ads for your specific products and services when they enter your geofence. The advertisements can be push notifications, text messages or ads in a web browser. A push notification is a message that will appear on your smartphone screen through an app, without the app having to be open. Text message notifications can be used if you have your customer’s contact information. When they enter your geofence, an automated text message will be sent notifying them they are near your location or reminding them of a sale or promotion.

How do you implement geofencing?

Mobile marketing is challenging to master, but with the right tools and the use of geofencing, it can quickly become successful for your business.

ROI from implementing geofencing tactics include:

  • Increase foot traffic by sending promotional offers to shoppers as they pass by stores

  • Suggest products based on previous in-app behaviors

  • Improve customer service by capturing feedback, or opening lines of communication between app users and business management

  • Integrate social sharing to boost brand awareness

  • Geo-conquest competitors by building fences around rival locations and push incentivized content to redirect decision-makers.

Before implementing geofencing, it is important to consider choosing how you want to collect data from users, how you want to use alerts to optimize geofences and what software you plan to use. If you are interested in implementing geofencing, be sure to choose an appropriate software to reach your goals, test the software, implement the software into your app and get creative with your geofencing campaigns.

Luckily, there are several companies that offer and specialize in geofencing software. AOE works to provide digital marketing solutions to help clients implement these tactics to further their marketing campaigns. For more information on a geofencing campaign, reach out today!

Learn more about other types of social media marketing.



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