How Does Businesses Benefit From Geofencing Marketing

Geofencing marketing broadens the scope of advertising. It targets consumers based on geographic areas by setting up “Geofences.” With this, one can send SMS, notify users, and push ads at varied locations. Let’s learn more about Geofencing marketing, how it works, and why businesses need it.

What is Geofencing Marketing?

Geofencing Marketing allows companies to reach local consumers. It is an effective advertising strategy targeting local pin codes or areas. It uses GPS to define the geofences around a chosen geographic location.

How Does Geofencing Marketing Work?

Geofencing Marketing Work

It is a must to understand the way Geofencing Marketing works. Since Geofencing marketing is location-based, one should know various aspects involved in it:

Defining Geofences: Businesses can set geofences as per their physical location preferences. It includes local stores, event venues, nearby societies, competitive locations, and more.

Active & Passive Geofencing: Businesses can send messages to local consumers using active Geofencing. On the other hand, with passive geofencing, there is no need for application.

User Opt-in: Users who receive Geofencing notifications must have smartphones supporting location services. They need to enable location tracking first to get their location data.

Entering Geofences: The marketing message gets triggered once the user enters geofences. The businesses can target the messages based on different customer segments.

Important Considerations for Geofencing Marketing

Important Considerations for Geofencing Marketing

Before executing Geofencing Marketing, it is important for businesses to consider various aspects:

User Privacy: The opt-in for the user is important to flash marketing messages. It is a good practice to inform users beforehand, conveying to them the positive aspects.

Battery Limitations: Most users turn off their GPS due to battery drain issues. In this case, you must ask users to enable the GPS option while using your app.

Application: You must use solutions like Netcore or Airdroid for geofencing marketing. One can also use BeaconStack SDK.

Collect Right Data: The businesses should collect relevant data on user geolocation visits. It helps in making the right strategy based on their interests.

Why Does Your Business Need Geofencing Marketing?

Every business invests huge amounts of money in marketing and advertising online. Here are some of the ways businesses can use geofencing to save marketing costs:

Target Local Audience: Geofencing Marketing targets an audience in a particular area. This is important to target store walk-in campaigns for retail brands or restaurants.

Competition: The best part of geofencing is that it lets you discover new consumers. Introducing sales and offers to existing or new consumers is a great strategy.

Relevance: With GPS, it connects businesses to desired audiences in the local area.

Real-Time Engagement: The geofencing marketing offers real-time engagement with customers. It is like communicating with the targeted audience in real time and influencing decisions.

Cost-Effective Marketing: It helps reduce the cost of marketing by targeting specific locations. It helps in the effective use of advertising to target potential consumers.

Benefits of Geofencing Marketing

Here are some of the best benefits that businesses can reap with Geofencing Marketing:

Boost Local Sales and Traffic: This is one of the best advantages for offline or brick-and-mortar businesses as they can have target consumers visit their stores through geofencing marketing. This can be beneficial in the long run to achieve store sales. It is focused on increasing foot traffic.

Local Demographic Personalisation: With the right data metrics about the local demographics of a location, businesses can do a lot more. They can cater to messages as per the demographics and target a specific consumer base.

Helps in Retargeting: Remarketing is a tactic that can help users make better decisions. Businesses can use geofencing to target local customers and invite them with sales or offers.

How Much Geofencing Marketing Costs?

Geofencing Marketing Costs

The Geofencing Marketing costs depend upon the type of campaign you are setting up. Multiple campaign setup options decide the cost per campaign or CPM (Cost Per Thousand Impressions). As per the market standard cost, it may range anywhere between $15 or higher per CPM. The geofencing range also decides the price of the campaign. The larger the area, the higher costs will be. It sometimes also depends upon your SaaS or campaign management tool.


Digital Marketing offers various ways to reach out to potential consumers. Geofencing marketing has huge advantages, and it benefits businesses with physical locations. It drives consumers to physical stores and can be a boon for businesses to increase their sales. Thus, businesses should utilize it to get the best returns on their marketing spending while leveraging local areas. However, this can also be paired up with other digital marketing strategies to reap wider benefits. So if you are the one looking to plan a Geofencing Marketing, You can connect with experts at LocationsCloud.

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