Location-based marketing: Geo-fencing


Geofencing as a marketing approach is now the most effective method of engaging mobile users. Mobile marketers can offer products and services based on mobile location data, while customers can receive customized content based on their interests and requirements. Marketers can turn apps into strong marketing tools that improve user experience and increase revenue by using contextualized mobile marketing campaigns.

Geofencing advertising and marketing solutions are used by a variety of businesses and organizations for location-based marketing. This improves customer awareness and brand equity, leading to greater customer satisfaction. With such benefits, the global geofencing industry is projected to have great potential in the next years.

Geofencing and geo-targeting are essential marketing tactics in 90% of ad campaigns. These two, though, are comparable, but there is a fine line between them that you must be aware of. So, continue reading to learn more about geofencing and how it differs from geotargeting.


Geo-fencing is a real-time location-based marketing strategy that leverages geolocation data to target people inside a defined geographic area and offers content based on where they are or have previously visited. The core of the geofencing approach is using GPS, RFID, Wi-Fi, GPS, or cellular data to trigger a targeted marketing action.
The primary goal of geofencing is to identify user presence within the fence. Ads are activated when users pass an imaginary boundary specified in a particular ad campaign while using geofencing. Geofencing is a successful approach not only for B2C marketing but also works well for B2B.

For example, if a sports center wants to increase the number of visitors, they can geofence the area surrounding the building or sports stadiums, or other areas that draw crowds. A geofence can be big or small depending on the marketing goals. If you want to push ads to everyone within a certain city you can do that or if your goal is more specific you can geo-fence smaller areas.


Before we go into the specifics of what makes geofencing and geotargeting differ, let's take a look at how geo-targeting works.
The process of delivering ads to a user depending on their geographic location is known as geotargeting. This can be done at the level of the country, city, or zip code. Geotargeting can also be used to exclude certain areas. This type of targeting is more effective for broader geographic audiences.

geo targeting and geo fencing illustration

When comparing geofencing and geotargeting, the key distinction to remember is that geofencing creates a boundary that triggers specific ads to appear when visitors cross it, but geotargeting is more focused on a group of users who are in the area of a geolocation point. As a result, geo-targeting provides flexibility while geofencing provides precision.


What is it about geofencing that excites marketers, and how might it help you in your marketing strategy? Here are the main benefits:

Enhanced Targeting
With the capacity to hyper-target prospects, marketers are able to reach more people at the proper time and place, as well as engage them with relevant and timely messages. It will be much more likely to engage prospects if you target people in a specific geographic area and filter that area using specific targeting criteria.

Effectiveness of ad spend
Engagement levels increase when ads are hyper-targeted and sent at the appropriate time and location. With geofencing, marketers can focus their marketing efforts on prospects who are most likely to act, while spending less on those who aren't.

Advanced Data
You'll have access to a wide range of useful data metrics after geofencing is set up. A business can improve the user experience, increase engagement, and better understand user behavior by merging collected data with online activity, transaction information, and web browsing activities. The same data can be used to deliver personalized follow-up messaging for people who have previously visited specific areas.

Personalized User Experience
Marketers may use geofencing to customize the user experience. If you're targeting certain geolocation, you can use the demographics of the local population to personalize your ads.

Competitive Advantage
When considering where to install your virtual fence, think about where your consumers are likely to be. Geofencing has proven to be a major success for many businesses since it allows them to divert prospects away from competitors.


Geotargeting and geofencing have opened up a world of possibilities for location-based advertising. One of the most significant benefits of this technology is that it allows the delivery of personalized ads. According to studies, 63 percent of users now anticipate personalization when receiving special offers, so make sure your messages are unique.
So, geofencing is a powerful and cost-effective method of reaching customers. If you are willing to boost your targeting to a new level with geofencing ads try UBIDEX.

Easily implement your location-based marketing strategy with UBIDEX Programmatic Tool.