Geofencing: Target Your Prospects

What is geofencing?

Geofencing is when a business creates virtual boundaries, or “fences” around their physical location (or a competitor’s location) – to target and attract consumers with advertising through their smartphones. With 71% of adults in the U.S. and 85% of teenagers using a smartphone in the US, geofencing is a great way to bring in more customers.

How is it done?

Tracking the locations of targeted customers relies mainly on GPS, Bluetooth, IP addresses or WiFi technology. When a potential customer is within the business location’s range, they are sent ads through the apps or websites they visit on their phones/devices. Typically, the ads offer promos, discounts, or even free items to encourage customers to visit their business since they are already in the area.

A Few Examples of Successful Geofencing Campaigns

Starbucks – Happy Hour specials like 50% off beverages 


Dunkin’ – free donut snapchat filters, free donuts, and discounts on coffee and breakfast sandwiches.


UBER – created fences around busy hubs such as airports, nightclubs, and hotels. Those needing a ride can find one readily available or just minutes away.


C.R. England and Johns Hopkins University have both used geofencing ads to announce job openings and offer extra incentives to new employees who respond to these targeted ads.


Other companies with winning geofencing campaigns include Van Leuween, Whole Foods, Barneys New York, and GasBuddy.


Witnessing the many success stories throughout their industries, more and more companies are integrating geofencing into their marketing strategies every day. A recent report conducted by Market Research Future predicts the global geofencing market will grow to $2.2 billion by 2023, so it is definitely an additional feature you may want to consider adding to surpass your competition!