5 Valuable Benefits of Geofencing in Location Based Marketing

05/19/2021 12:00 AM by Admin in Seo

Location-based marketing has been introduced a few years ago in the market and geofencing has given it a very advantageous turn. With geofencing, you get the capability to target audience exactly in the area you give the service. If you run a business that has local services then it is highly recommended to hire a geofencing specialist. According to analysts, this increases your conversion rate by 20%. GPS technology has the capability to differentiate between two mobiles as short as 1 meter or you can say GPS technology in normal phones has an accuracy of 1 meter. With this feature and use of other technologies like RFID, Wi-FI, and mobile networks one can pinpoint the location of the user and can show an advertisement to them based on that.


Without getting into much detail let me first give the top 5 benefits of geofencing in location-based marketing:

1. Improved Targeting Based on Location

When you tell the people this service or product is available near you within this range then this takes the marketing to the next level. You are showing a personalized ad to the user where they live, which makes them more likely to visit or use the service when in need. For example let's say you have a store in Times Square, New York so you are advertising to people in New York. However, you will be advertising to people who are even living The Bronx. This reduces your chance of serving the people that live in the area but if you have used all that money advertising in Times Square 1 km range. Then you can easily increase your conversion rate. I hope you are getting my point.

2. Improved Engagement with Your Brand

As the target is improved so is the engagement with the brand. When users get relevant and personalized offers, engagement increases. This in turn improves brand loyalty. This sometimes creates a snowball effect. Like one user tells about your brand to two more people that this offer is available in our then these other people tell more people and hence create a snowball effect. A small tactic like geofencing can give a huge benefit.

3. Better ROI

Geofencing gives you the ability to check the response of your audience to your local ads. This helps you estimate which ads work better and help optimize your ROI. Once you know what works your ROI will improve significantly.

4. Improved Efficiency

When your ads are highly-targeted cause of geofencing the efficiency of your ads improves dramatically. Your communication with your buyers and users gets more personalized and this impacts the overall marketing efficiency.

5. Much Better Data to Play With

Once you deploy geofencing in your location-based marketing you get access to a lot of data that previously you would not be getting. For example, if you have multiple stores then you get to know which stores are performing much better, which ad and offer works better for which store. The type of audience you get at a particular store, their demographics, and other important stuff.

Now that you know the benefits of geofencing you should know where you can hire a geofencing specialist. One such company we can recommend is EWebResults which is immaculate in applying geofencing for location-based marketing.

Is Geofencing Marketing Cheap or Expensive?

If you look at the features and benefits of geofencing marketing it may look quite an expensive thing to implement but in reality, it is way cheaper than you think. For example, if your company already has a marketing team and it is using the Google Ads for advertising your brand, the tools needed for an effective geofencing marketing campaign are already available to you. Google Ads has the feature in-built to set location-based parameters for ads and Google Maps business listings, and you are not even required to pay anything extra for this tech. You have 100% control where you want to set the targeting location, within a 1-mile radius to the entire city, state, country, or even the whole world.

Example of Geofencing Marketing

One of the best geofencing marketing strategies in recent years which you can say is also a brilliant example of corporate trolling. Fast-food chain Burger King launched a campaign called the Whopper Detour campaign, which started with creating approx 200 meters geofences around McDonald’s locations. Burger King then asked their followers on social media to go to McDonald’s. You would be thinking that why someone will recommend their rival. Hold on your horses as there is a big surprise. As soon as a customer who had the Burger King app installed in their mobile phones went into one of the virtual geofences around a local McDonald’s, the Burger King's app would send an offer for a one-cent Whopper from the nearest Burger King shop. This inspired many customers to get “Whopper Detours” and drop their plans of going to McDonald’s.

What a great use of geofencing marketing. What do you think about it, do let us know in the comments below!

Sephora is another example of good geofencing marketing. They send a notification to users near their stores who have unused coupon codes or unspent gift cards. This increases engagement with their brand and customer loyalty.


Overall, geofencing marketing is a must if you want to take your brand to the next level. With geofencing, you can push the limits of your brand. Different brands are already using it to engage with customers and to increase brand loyalty and advocacy. It may look a little unfamiliar but the reality is, it has the potential to give you better results from your other marketing efforts. It also looks less spammy and more useful to customers as their device is helping them to get the most from their nearby stores and services. It is also a dream come true like features for marketers and business owners as it generates more interaction, gives better ROI, more walk-ins, and more relevant data to optimize the store/business.

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