How Much Does Geofencing Cost

If you’re ready to start incorporating geofencing advertising into your digital marketing strategy, submit your free proposal, and we”ll have one of our expert strategists get in touch with you.

Google partner
Digital Logic Forbes agency council member
Google advertising services
GoodFirms Badge

See how Geofencing marketing can help bring in NEW CUSTOMERS

Do you want to reach more local customers? With geofencing marketing solutions, you can target qualified customers near your business and encourage them to visit your store. This is a great strategy that helps your business attract interest leads to your page, as well.

Things to know bout GEOFENCING







Is Geofencing Expensive?

In terms of geofencing pricing, geofencing marketing with Facebook and Google Ads does not cost anything more than the other online campaigns. Bid prices might be a bit higher than blanket location targeting. But that depends on the competition and targeting options near points of interest. The cost of geofencing is either a CPM, CPA, or event cost per conversion, depending on your campaign goals.

Many companies require you to have a minimum monthly PPC spend budget. Larger companies like require a minimum of $10,000-20,000/month. At Digital Logic, we require a $2,000/month spend to get optimal results for our clients.

Factors that Impact Geofencing Costs

Geofencing marketing is a great method that’s able to help your business attract leads. If you’re ready to start using the geofencing method, you should look at the cost to see how it fits into your marketing budget. Like all of the finer things in life, there are certain factors that impact geofencing costs.


Geofencing can be integrated into multiple marketing strategies. For instance, you can add geofencing to your pay-per-click campaign for free. The same concept applies to social media platforms.
With both types of ads, you will set the amount that works best for your business. The bid prices could be slightly higher for geotargeted ads. If you have your own app, you can add geofencing features to enable push notifications. You will incur costs here, but if you don’t have an app, you will pay for campaign management and development. Learn more about Facebook geotargeting and geo snap.


If you choose not to hire a professional digital marketing agency, you will also need to purchase tools, geofencing software, or plugins to set up and monitor your performance. The cost will depend on which tools you use. If you don’t want to rely on tools or aren’t sure how to use them, you always have the option to hire a digital marketing company. A digital marketing agency will run your campaign for you while you run your business.

It always pays to hire a professional.

Size of Geofence

When you set up your radius, you will see that the size also affects your cost. A 5-block geofence is more expensive than a 1-block geofence. The further you expand, the more you’ll have to pay to get your leads through the door. Bigger isn’t always better when it comes to marketing strategy.
This is something to consider in regards to your ROI (return on investment).
Learn how to set up a geofence.

Number of Geofences

Sometimes, when you set up your geofencing campaign, you’ll want to target more than one place. If you have competitors in your area, you may want to target their business, as well.

With each geofence you create, you’ll incur additional costs to your plan. This is important to note when you’re considering geofencing the competition.

Benefits of Geofencing

Like anything else in business, there are benefits and drawbacks to using geofencing as part of your overall marketing strategy. A few of the benefits include:

You can draw potential customers in to your store

Geofencing is a great way to attract those who are already nearby. A notification or re-marketing ad may entice those who weren’t originally planning to visit your business.

You can create a personalized experience for your customers

When you opt for geofencing as part of your overall marketing strategy, you’re able to lure your audience with a more personalized approach. It creates a better experience for your audience, while increasing the likelihood of a conversion, for you!

You can measure your success

Sometimes, it’s difficult to know exactly how much your efforts are causing conversions. With geofencing, you can monitor how many people come into your store directly from your geofencing strategy.

Geofencing Tips

If you’re ready to start using geofencing marketing as a part of a comprehensive strategy, here are a few tips to help get you on the road to success.


Know your target audience

If you want to have a successful geofencing campaign, you need to know your audience, well. Your promotions must be tailored to mee their needs. If you don’t take the time to figure out what they need, your audience will not act.

Before you start your campaign, segment your audience by what their interest are. This helps you understand what types of content you’ll need to create, and will ensure you send messages that resonate with them.

You also need to know how your target audience is interacting with their mobile devices. An older crowd won’t use their device the same way teens do. If your audience is heavy handed with social media, meet them there. Engage them in your app. Knowing how your audience interacts on a daily basis is the best place to start.


Watch the size of your geofence

When most people start looking into the world of geofencing, they often want us to set the widest radius in order to reach as many people as possible. They believe this is the best way to get the most door swings. But, this isn’t the case.

If you set a wider radius, it is true that you will reach more people. This doesn’t mean that more people will visit your business, though. Those who are ten to fifteen minutes away are more likely to visit than those who are thirty to forty five minutes away. 

The best practice is targeting those who are a walking distance away. Try to target those within a four to five minute walk or drive. Keeping a smaller geofence will help drive in leads that are more likely to convert. 


Be upfront with notifications

If you’re taking advantage of geofencing marketing, you’re more than likely sending push notifications in your app. It’s important to be upfront with your audience. Tell them what information you need and when they can plan to receive notifications. 

Unless you’re a florist, you can bet that your customers don’t like unexpected surprises. They want to know what they can expect from vendors. This will help you build confidence with your audience members, as well.


Create a clear call-to-action(CTA)

This is one of the most elementary rules to marketing. Yet, it’s one that often times gets forgotten. Whether you’re going for push notifications or pushing social media ads, you want your audience to know what to do next. 

When your audience sees your notification, they should immediately know what to do. You want to entice them to act and visit your store. Make them interested in buying from you. Creating a strong call to action will prompt your audience to act. 

Let's work together

Let us know how we can help you with your geofencing marketing strategy.