Definition of Geofence

Geofencing is a digital marketing strategy that employs GPS or RFID technology to define a specific geographical boundary. Once this virtual barrier is established, targeted advertisements or notifications can be triggered when a user’s device enters or exits the area. This location-based approach allows marketers to tailor their campaigns efficiently to a highly relevant audience.


The phonetics of the keyword “Geofence” is: /ʤiːoʊˈfɛns/

Key Takeaways

  1. Geofence is a virtual perimeter for a real-world geographic area, usually created using GPS technology.
  2. Geofencing has various applications, including location-based marketing, asset management, and smart city management.
  3. Privacy concerns should be considered when using geofencing, as it involves collecting and storing user location data.

Importance of Geofence

Geofencing is a crucial digital marketing term as it enables businesses to create virtual boundaries around specific geographic areas, thus allowing them to target and engage with potential customers more effectively.

By using GPS or RFID technology, geofencing can trigger advertisements, alerts, or other actions based on a user’s location, making it highly relevant to their immediate needs and preferences.

This targeted approach not only enhances the user experience but also significantly improves the efficiency of marketing efforts.

By delivering timely, personalized, and location-specific content, businesses can increase engagement, conversion rates, and ultimately, drive better results from their digital marketing campaigns.


Geofencing, as a powerful location-based marketing strategy, primarily aims to serve as a virtual boundary around a specific geographical location that, once crossed, triggers a predefined response. Businesses harness this spatial technology to pinpoint their target audience, enhance engagement, and drive more conversions in their marketing efforts.

As a modern means of marketing, geofencing not only caters to big businesses but also proves beneficial for small and local entities, leveling the playing field when it comes to capturing the interest and attention of potential customers. One of the many versatile applications of geofencing is enabling marketers to send targeted offers or advertisements right at the opportune moment when potential customers are nearby.

This proximity and timing combination ensures that businesses adequately capture their audience’s interest, increasing the chances of turning prospects into returning patrons. In turn, this highly targeted approach allows marketers to gain better insights into consumer behavior and helps them in developing more personalized campaigns that resonate with their audience.

Moreover, geofencing can also be utilized to track and analyze foot traffic patterns, thereby empowering businesses to identify factors that affect consumer presence and strategize accordingly.

Examples of Geofence

Retail Store Promotions: A popular clothing store creates a geofence around its physical location or around a shopping mall. When potential customers with the store’s mobile app enter the geofenced area, they receive a push notification on their smartphones offering a special discount or promotion to entice them to visit the store.

Event-based Marketing: During a music festival, a food truck vendor sets up a geofence around the event venue. Festival attendees who have a specific food app installed on their phones receive a targeted advertisement or special offer when they enter the geofenced area, encouraging them to visit the food truck for a meal or snack.

Competitor Conquesting: A car dealership creates a geofence around its competitor’s dealership. When potential car buyers enter the geofenced area, they receive targeted ads on their mobile devices, promoting the original dealership’s exclusive deals and offers, with the goal of luring customers away from the competition.

Geofence FAQ

1. What is a geofence?

A geofence is a virtual boundary created around a specific geographic area, using GPS, RFID, or other location-based technology. Geofencing enables businesses, marketers, and app developers to trigger certain actions when a device, like a smartphone, enters or exits the defined area.

2. How does geofencing work?

Geofencing works by using a location-enabled device (e.g., smartphone, GPS tracker) to communicate with software that monitors the device’s position. When the device enters or exits a predefined area (the geofence), the software triggers specified actions like sending a push notification, setting off an alarm, or logging the event.

3. What are some applications of geofencing?

Some common applications of geofencing include marketing campaigns, which push ads or offers to customers when they enter a specific area; fleet and asset management, which tracks vehicles and equipment in real-time; and security and access control, which can automatically lock or unlock a device based on location. Other applications include wildlife tracking, employee time tracking, and home automation.

4. What are the main advantages of using geofencing?

Geofencing offers numerous benefits, including increased customer engagement, personalized experiences, data gathering and analytics, improved asset tracking, and enhanced security. It enables businesses to deliver context-aware, location-based services, making it an attractive solution for a variety of industries.

5. Are there any limitations or concerns with geofencing?

There are some limitations and concerns with geofencing, such as accuracy limitations due to GPS errors or interference, battery drain caused by constant location tracking, and privacy issues raised by location-based data collection. It’s essential to consider these factors when implementing geofencing and to take necessary precautions to address potential risks.

Related Digital Marketing Terms

  • Location-based targeting
  • Geo-targeting
  • Proximity marketing
  • Push notifications
  • GPS tracking

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