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Geofencing marketing and geofencing advertising

What is Geofencing Marketing?

Geofencing marketing is a location-based marketing service that businesses use to engage their audience. They do so by sending relevant messages to smartphone users who enter a predetermined boundary or geographic area.

Need the definition of geofencing? Geofencing marketing is a location-based marketing service that local businesses use to engage their audience. They do so by sending relevant messages to smartphone users who enter a predetermined boundary or geographic area.

Geofencing marketing is a mobile and desktop marketing strategy that gives local, multi-channel businesses the opportunity to interact via mobile devices with customers and potential clients who are nearby and more than likely, ready to buy, before they even walk through the door.

Marketers can send product offers or specific promotions to consumer’s or potential customer’s mobile devices when they trigger a search in a particular location, geographically, whether this be in a mall, store or even neighborhood!

The market constantly changes and customers find themselves swamped in irrelevant ads.

Geofencing gives businesses the opportunity to capitalize on two of the most important aspects of the buyer’s journey, when they intersect: time and location.

What Does Geofencing Marketing Mean for Your Business?

What does an investment into geofencing marketing mean for your business, though? This location-based form of digital marketing means you deliver the right message at the right place and time. This form of advertising is a powerful way to connect with both new and preexisting customers.

Need to know more? People also ask:

How Does Geofencing Marketing Work?

Successful geofencing marketing creates meaningful interactions between a business and a customer or potential customer. Businesses can capitalize on this mobile marketing strategy by combining technology with precise customer targeting, along with a genuine, personalized message.

Geofencing begins with technology. This form of marketing uses technologies such as beacons, GPS or even IP addresses to build a fence. When someone with a mobile device who has an app related to the business or key in search terms, enters a specified area, they can receive special ads, messages or notifications.

Because of its highly localized and hyper-targeted audience, the geofencing strategy produces fewer, but much more qualified leads. This leads to higher quality clicks and a better ROI (return on investment) and ROAS (return on ad spend).

The strategy relies on meeting your customer’s needs right where they are. This relies on you really understanding your customer base and harnessing the power of “near me” searches.

Search analytics and demographics play a critical role in ensuring success for this type of campaign.

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Learn About the 23 Proven Digital Marketing Tactics That You Need for Your Business

Is Geofencing Expensive?

One of the most often asked questions we receive is, “What’s the cost to geofence?” or “How much does geofencing cost?” The answer: it depends.

Cost Influences for Geofencing Marketing

Typically, the price for geofencing marketing ranges from $4 to $15 CPM (cost per thousand impressions). However, several factors affect the price, including impression volume and advanced targeting features.

Geofence Size and Numbers

The size and number of geofences will influence the cost of your campaign. The larger the geofence, the lower the CPM will be, because the volume is higher.

Geofencing Reporting 

Also, take into consideration the level of reporting you to expect from your investment. Not all services are created equal. Some marketing companies are completely transparent, while others are not. Certain companies will give you a breakdown of the impressions per location, while some will only give you an overall campaign total.

Data Layering

How much data layering do you need? Behavior and demographic targeting, re-targeting options usually come at a cost. These options are normally well worth the investment, as the further ensure the success of your campaign by really honing in on your target audience.

Can I Use Geofencing Without SEO?

As more businesses shift their marketing budgets to digital advertising, mobile marketing, and local SEO should be part of this mix. Location-based marketing is one of the best ways to maximize a tight budget.

Both geofencing and SEO (search engine optimization) can have extensive impacts, especially for legal marketing and marketing for medical practices. Geofencing will help with the top-of-the-funnel individuals who have shown intent. For example “I am injured and in the emergency room now.”

When you have a solid SEO strategy and you’re ranking for several keywords, the same potential customers who saw your ads from your geofencing campaign will be more likely to visit your search listing, regardless of whether they searched for your branded or non-branded keywords.

Furthermore, Google gives preference to ads based on their quality score. Your quality score is comprised of expected click-through rate, ad relevance and landing page experience. The more relevant your landing pages are to your ads, the higher your score will be. The higher your quality score, the less you’ll have to pay upfront to get your ads seen, essentially. And, how does Google determine things such as “relevance” and “landing page experience”? You guessed it–SEO.

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Why Should I Start Geofencing Marketing?

Finally. Last, but certainly not least–why should you start geofencing marketing? Why does geofencing get business owners so excited, and how can it help you?

There are four major benefits to adding geofencing marketing to your current marketing strategy:


The biggest advantage of geofencing marketing is that your message becomes increasingly more relevant to those around. By reaching out to those who are geographically “close” and layering other targeting data on top, you’re much more likely to see conversions than if you were simply casting a net.

Spend Efficiency

Higher quality leads lead to more effective marketing budgets. With geofencing, you’re able to reach out to the audience who is the most likely to convert. This means that less budget is spent on less relevant customers.

Data Effectiveness

If done correctly, geofencing marketing can bring about a whole new world of data. With the right marketing team, you’ll be able to collect very valuable data on traffic patterns, duration, and messaging effectiveness.

Better Attribution

Geofencing marketing bridges the gap between advertising and action. You’re able to see when the ad was seen and what the customer did next. This is a huge help and can be used across the board for all of your marketing efforts. This is a key player in determining ROI for your business.

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Who Can Geofencing Marketing Help?

Geofencing Marketing Companies

If you’re interested in our Geofencing marketing and advertising services, contact us to discuss your marketing goals. Most of the time with our services, geofencing is only one part of a more comprehensive campaign. We help you reach your business goals and get customers and the lowest possible price. Learn more about our digital marketing services, or drop us a chat below.

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