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Geofencing Marketing In 2017

Have you ever received an instantaneous traffic report on your phone on stepping out of your home? If you have not experienced such a phenomenon, then you must look for useful insights that would bring a pop up on your device about specified information that would be essential to you.This process is called geofencing. Moreover, studies reveal that this locally optimized technique assist to boast the customers reach thereby doubling the click through rate (CTR) through smartphones. This is an easy and affordable way to engage with consumers and build up the bottom line.  

The strategy currently is witnessing a moment, with digital experts declaring geofencing as a complete change up affecting mobile marketing. Geofencing fundamentally can alter how brands or businesses engage with the audience as it is a deep-rooted concern yielding substantive benefits to marketers.

What is Geofencing Marketing?

Geofencing is an approach in which virtual boundaries are created to portray a real-life physical location. The marketing element comes to play when the user breaks the virtual boundary and enters a particular area, the user is then notified through a targeted message.

How is Geofencing Marketing implemented?

The four major elements that contribute to geofencing are - barrier, crossing, messaging and permission. Firstly, a barrier is set using digital interface tied to the geographical location. This is generally done by specifying a city, address or radius. It is done by sketching a digital map.

As most people have smartphones that are both Internet-enabled and GPS inbuilt, it is easy to locate an individual while he crosses a predefined location. After the individual crosses the threshold, he receives the message. This step of sending a message can be carried out in various ways that include text messages, app notifications and digital advertisements.  For geofencing marketing what exactly needed are a mobile-friendly communication method and a mechanized delivery podium. However, for the success of a geotargeting campaign, you require attaining the permission from the individual which would enable your business to know their location so as to reach them.

How are the marketers utilizing Geofencing?

The possibilities of utilizing a geofenced campaign are enormous. However, the basic core approach which is widely used includes:

Brand App Engagement

The users must download the brand’s app to receive the message (encouragement to buy, offer, coupon et cetera) that are prompted on entering a geofenced location.

Engagement through Text

If the users enable the permission to receive a message through text on smartphones from a brand then he receives a text on entering a geofenced location.

Engagement through Third-Party App

When the user downloads a third-party app like a couponing app or restaurant locator app, he might receive the brand’s geofenced message on the app.

Social Media Advertisements

A consumer might receive a brand’s advertisement on social media feed (Facebook Local Awareness Advert) on entering a geofenced location.  

Web Advertisement

Consumers enter a particular geofenced area and the brand’s advertisement is delivered through units like Google’s targeted AdWords.

Examples of Brands utilizing Geofencing Marketing


BMW uses geofencing to offer quality customer service. BMW has incorporated the concept of geofencing not for garnering consumer attention but to provide valuable information to their users. BMW has utilized the system of geofencing in their BMW Trackstar services. The geofencing service on the BMW displays the position of the car every 20 seconds. Moreover, if the car is moved without the utilization of the keys or if it is moved out from a designated geofence, then an instant message will reach out to the car’s owner.


Northface, an outdoor apparel brand used geofencing marketing to garner sales. The company experimented with a geofencing strategy to lure relevant customers to their physical stores by utilizing push notification about the weather. The weather-based geofencing alert was successful as the brand recorded 79% increase in store visits and 65% increase in sales by the customers who visited the store through mobile notification.

Why should the brands do Geofencing Marketing?

There are four benefits which a brand can record through Geofencing:


The basic benefit of implementing geofencing marketing is that it makes your messaging relevant and timely. Geotargeting helps to reach people who are on the move or are near a geographically geofenced area which lastly assists to engage customers.

Effective Spending

A relevant and better engagement results in effective marketing spend. With the assistance of geofencing, the brand is able to reach the audience who are likely to take action, which counts down to less budget spend.

Better Data

Through the right platform, the brand is able to garner valuable information regarding traffic patterns, stay durations and messaging effectiveness.

Better Attribution

Geofencing marketing provides the basic link that marketers have long waited for: the generation of connection between advertising and action. This particular technology allows you to view when the advertisement was seen and what did the consumer do next. Through geotargeting, it is easy to see the exact impact of your message. This is a great help in determining the ROI (Return on Investment).

As a Full Service Digital Media Agency, Digitale believes that the advantages garnered through geofencing marketing isn’t separate rather it is interlinked. Better targeting, relevant data and better attribution leads to effective spend on Geofencing. Hence, it is an approach that can be transformative and a great win for businesses if all the interlinked factors are scrutinised and implemented properly.

By : Shazia Burke


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