The Power of

May 5, 2022
The Power of Geofencing

If you’re working in marketing, you’ve likely heard the term geofencing. But what really is geofencing? How does it work? And why can it be a powerful tool?

What is geofencing?

Geofencing is a virtual perimeter placed on a real-world geographic area to establish a dedicated set of boundaries. Geofencing can be built to follow an existing set of boundaries such as a neighborhood or community or dynamically generate a radius off of a precise pinpoint location, like a retail store.

How does geofencing work?

There are a wide range of applications for geofencing, from virtual dog fences to corporate security, but location-based marketing is one of the most common uses. Using primarily GPS technology, a business can build a virtual boundary that is alerted when a user carrying a digital device enters a dedicated perimeter or geofence area.

Why is geofencing so powerful?

Geofencing allows marketers to effectively and efficiently target potential customers within a dedicated area, including those close to their place of business, with a timely and relevant offer. Imagine a convenience store located just a short distance off a major highway. With a geofencing perimeter in place, a retailer can target drivers who would typically unknowingly pass by with a message making them aware of their existence and delivering a timely and relevant offer.

What makes geofencing especially attractive is that it is a hyper-efficient way to spend your marketing dollars. Because most geofencing is built on a CPM impressions model, it:

  1. Avoids blanketed outreach to uninterested or out-of-market customers.
  2. Delivers timely and relevant content to only those customers who are within a dedicated perimeter.
  3. Is both nimble (can be adjusted quickly) and highly strategic (can include and exclude areas with incredible accuracy).

In addition to building a geofence around your place of business or a highly coveted consumer area, you can also create a geofence around a competitive business to lure potential customers away from your competition. Competitive geofencing is also sometimes referred to as geo-conquesting. Geo-conquesting can be an excellent strategy for any business, but in particular, it can be a powerful tool for challenger brands who are looking for ways to compete against more prominent, well-recognized brands.

To learn more about how you can integrate geofencing into your next marketing omnichannel marketing strategy, visit to get in touch with one of our Marketing Advantage Program experts.


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