What is a Geofence?

May 9, 2022

You may be asking yourself, exactly what is a Geofence?

Geofences are digital parameters placed around physical locations. Watch the video below for a more detailed explanation.

Geofences Capture Information and Build Targeted Audiences

In the world of digital marketing, geofences are used to capture information and build audiences from people visiting target locations. The targeted audience is predetermined by the location they are attending.

This allows an advertiser to get messaging in front of a geographically targeted, active consumer. It’s a technology that serves smartphone users with ads that are relevant.

Integrating geofencing strategies into marketing plans has proven to get more sales, engagement, and customer loyalty.

Geofencing Campaign Example

Here is a picture showing 4 target locations.  The client is a steak and seafood restaurant getting advertisements in front of people going to local boat docks.  Additionally, the client geofenced a competitor restaurant location, serving ads to people attending competitor locations.

Let’s get into the nuts and bolts a little bit about what geofences are and how they are created.

Technical Information on Geofencing

To begin, geofence applications use triangulating GPS, RFID, WIFI or cellular data to form a geofence.  Remember, this is a digital parameter around a physical location.

Quick note, RFID is short for radio frequency identification.  A cell phone has a unique, active RFID chip that works by constantly transmitting and receiving information through an antenna and microchip.

So hopefully you have a better understanding of what are geofences, now let’s look at how the technology is used in marketing.

It may seem complicated, but when you work with an experienced team like GetGeofencing, we make it easy to achieve your objectives.  For more information, go here

The Geofencing Campaign Process

It’s really a three-step process.

  1. Provide the physical addresses to be geofenced.
  2. Draft ads that are going to be shown across websites and apps to the audience visiting the geofenced target locations.
  3. Set a budget. Geofence Campaigns range from $1,000 to $30,000 per month.

If you have questions about launching a geofencing campaign, contact us!

Another Geofencing Example

Say you have a furniture store.  There are competitors with furniture stores near you.  Geofencing allows you to turn a seeming disadvantage into an advantage.

You know people attending your competitor stores are actively out looking for furniture.  By getting an offer in front of an active audience, results will be substantially increased.  You will increase foot traffic to your store and website.

Another feature of geofencing is tracking.  We can track people receiving ads and physically visiting your store. In addition, we can track traffic to your website.  This provides a precise ROI on marketing spending.

Bottom line. If you have a brick-and-mortar store, a geofencing campaign is a marketing necessity.

Geofence Campaign Statistics

Here are some interesting statistics about this relatively new and growing marketing channel:

  • 92% of smartphones can be used in geofencing campaigns.  This includes IOS, Android, Google, and other operating systems.  Simply, if you can order an Uber, you are eligible to be placed in a geofenced audience.
  • The average person spends approximately 5 hours a day on their phone.
  • 53% of shoppers strongly consider a competitor’s offer when making a purchasing decision.
  • Approximately 22% of brick-and-mortar businesses are using some form of hyper-local marketing.
  • 71% of people have reported starting research on their phones before making a purchasing decision.
  • Mobile ads with geofencing have over double the click-through rate as opposed to campaigns without a geofencing component.

In closing, hopefully, we have answered your question about what are geofences and how they may help your business.

If you want to say hi, please click over to GetGeofencing Facebook Page.

Please check out our GetGeofencing Youtube Channel for free training!

Contact us for more information about Geofencing and how it works!

Chris Seminatore Get GeoFencing

About The Author:

Christopher Seminatore is the Managing Partner at GetGeofencing. He is ex-Naval Intelligence, graduated from Miami of Ohio, currently resides in Baja California and guest lectures at UC Irvine on Hyper-Local Marketing for the Business Administration Master’s Program. He is spearheading another project to assist business owners aptly named GetGeoLocal. Mr. Seminatore is an avid motorcycle enthusiast that hates working out but does it anyway. Go Bengals, Go Rams!  

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