A Step-by-Step Guide to Geofencing Marketing

Byon January 16#business-tips
A Step-by-Step Guide to Geofencing Marketing
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Location-based marketing has an edge over traditional marketing. It helps a brand reach its target audience at specific places they visit on a regular basis. Geofencing allows you to create and target audiences through custom targeting shapes with absolute precision. But before you reap the benefits of this marketing tactic, you must know how to best employ it for your brand.

1. Research Your Target Audience:

A clear understanding of your target audience is essential for the success of your geofencing marketing efforts. If you know who your audiences are and what they want, you can prepare a foolproof strategy that will drive results. The information will help you create personalized ads that will engage the prospects and encourage them to buy from your store. Hiring a geo fencing company might be a good idea if you are new to this type of marketing. While you can find relevant data about your target audience from your past orders, you can also interact with your customers to understand what they expect from your business.

2. Keep the Geofencing Boundary Small:

You should keep the geofencing area to a four- to five-minute walking radius around your place of business. If you choose a larger boundary geofencing, you may ultimately promote your business to people who will never buy your products. Also, it is a good idea to understand your audience. If your target audience tends to drive more, consider a larger boundary for the geofence. The four- to five-minute walking radius is fine for the audience who prefer to walk more. The shorter the boundary is, the easier it will be to create personalized ads for the audience.

3. Create Clear and Actionable CTAs:

The point of creating geofencing ads is to get the audience to visit your store (both online and offline) and buy your product or service. Instead of adding a generic call-to-action (CTA) to your personalized geofencing ad, it is recommended that you develop something more specific and to the point. While doing so, make sure that the ads are not spammy or self-serving. While promoting a new product, you can invite the audience to try it instead of telling them to purchase it directly. By doing so, you are guiding them through the marketing funnel.

4. Use “Enter” and “Exit” Conditions:

With every geofence, you get the option to request entrance and exit events. You also get the option to specify a duration within the selected area to wait or dwell before triggering an event or a campaign. When your target audience enters your geofence, that’s probably the best time to encourage them to perform an action. This is why brands usually trigger their campaign as soon as they enter the selected geofence. You can include a special promotion or a discount to make them visit the store once while passing by. When a target audience exits the geofence you have set up, you should add them to your retargeting efforts. This will help you send them ads for up to 30 days afterward.

5. Combine Geofences with Behavioral Targeting:

You can create highly targeted marketing campaigns based on date, time, and other crucial details (such as buying habits, online browsing behavior, interests, order history, etc.) by using programmatic features to add a layer of behavioral data. Such highly specific campaigns add extra value to the user as those are relevant to their past purchases and interests. This helps add extra value to the user experience. This helps you target the audience who are most likely to become customers.

6. Analyze and Optimize the Campaign Based on Insights:

If you do not analyze and review your geofenced ad performance, you may end up missing opportunities to reach more leads. The insights you get from these analyses and reviews help you refine and optimize your ad campaigns for better ROI. You should focus on the key metrics while analyzing for geofenced campaigns, which include:

Cost per visit (CPV)

Total visit rate (TVR)

View through visits

Click-through visits

You will have to interpret these insights based on your business requirements. Also, strategic A/B testing will help you understand which elements of your geofencing ad campaign need to change.


A majority of your target audience is more likely to become your customer if you are able to deliver a personalized experience. With personalized marketing, such as geofencing marketing, you can ensure that your campaign is reaching the right person at the right time and place.

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