Grassroots Digital Marketing Studio

Geofencing is a powerful way to harness the power of location-based marketing using a combination of mobile phone data and triggered target marketing campaigns when a potential customer enters a predefined digital geographic location.
What is Geofencing?

Out of the 7.7 billion people in the world, more than 46% own a smartphone. With the rise of the smartphone, the ecommerce market has blown up just on mobile. 

A unique version of ecommerce for marketers is geofencing.  Geofencing Marketing is a location based marketing that leverages the widespread use of mobile devices.  Geofencing uses several technology mobile devices have: GPS, Wi-Fi, and RFID.

What is geofencing?

If not switched off, your smartphone will be tracked on where it goes. Geofencing is when an app prompts an action or message to a smartphone based on its location. It uses a combination of GPS and bluetooth to understand where you are. 

Geofencing allows you to target a very specific area around your business or where your customers are.  This could even be a competitor’s business.

An example of this is when you are driving on the highway and then receive a notification that there is a crash up ahead. For marketers, this service will allow them to send ads to users based on what local businesses are around.

Better ads

The mobile ecommerce market is over 3.5 billion strong. This means that as marketers, you have a huge market to target. With geofencing, you can better target users with ads because since they are near certain businesses, they are more willing to visit due to the proximity.  

This means that not only can you target your core audience, but you can attract others who are physically nearby.  These ads could be through search and display or ping a notification in an app.

Optimized Analytics

Geofencing can optimize your analytics. Not only can it increase your audience count, but you can also determine if a targeted promotion was successful based on if the user bought said product from the ad. You can also track how many times the user has visited the business and how long they stay based on their location. 


As the user, geofencing is important because it brings in personalization. If the user is hungry and is nearby a business, a targeted ad can be sent to the user about visiting the business for a discount or deal. 

Once you get data on your customer, you can analyze and see what products they purchased and then be able to send them promotions on those products to bring them back in the future.

Strategies for Geofencing

Making sure your geofencing is the right size is of primary importance.  Too big of an area, not only increases the cost, but might lead to ads being served to individuals unlikely to convert into customers.  

Make sure that your geofencing ad is actionable and have an understanding of who you are targeting.  Since Geofencing is location based you want people to act on it immediately, not at some later point, especially if the geofence is around your own business or a competitor.


While geofencing is great for marketers, it has caused a privacy issue for users. Having targeted ads based on where you visited has made people feel as if they are being watched, and some states, like Massachusetts, have banned location based advertising.

With pinpoint location technology becoming more efficient, it seems that geofencing will be a staple in the marketing community. But, with these privacy laws, we might see some possible setback. The next steps for marketers will be how to tackle this issue as more concern is looming ahead.


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We are digital marketing company that focuses on website design, social integration and content creation.

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