What is Geofencing? Marketing by Location

Geofencing is a virtual boundary around a place that triggers an action, such as a notification or an ad, when a phone enters or leaves it. The notification a store app sends as you walk past is geofencing. It needs a mobile app with location permission, or an ad platform, and it is separate from a store locator, which customers use to find you.

This guide explains how geofencing works, its marketing uses, and how it relates to store locators.

Related reading: What is a store locator? | What is geocoding?

The short answer

• Geofencing triggers an action at a boundary. Enter, exit or dwell inside a virtual fence and a notification, ad or message fires.
• True geofencing usually needs an app. The app asks for location permission and registers the fence with the phone's operating system. Ad platforms offer an area-based version without one.
• Geotargeting is different. It shows ads to people in an area, without watching for boundary crossings.
• A store locator is the pull side. Customers use it to find you, while geofencing pushes a message to people near you.

Geofencing Definition

Geofencing is a technology that creates virtual boundaries around geographic areas. When a mobile device enters or exits these boundaries, predefined actions trigger.

Example:

• You define a 500-meter radius around your store
• Customer with your app enters that radius
• They receive a push notification: "Welcome! Show this for 10% off"

The "fence" is virtual: the customer does not see it, but their device detects it.

How Geofencing Works

The Technical Process

1. Define the Geofence

Specify:

• Center point (coordinates)
• Radius or polygon shape
• Actions to trigger

2. Register on Devices

Mobile apps register geofences with the operating system:

• iOS: Core Location
• Android: Location Services

3. Monitor Location

The device periodically checks location against registered fences. This happens at the OS level, even when the app isn't active, if the user has allowed background location.

4. Trigger Action

When crossing a fence boundary:

• Entry trigger: "User entered the zone"
• Exit trigger: "User left the zone"
• Dwell trigger: "User has been here X minutes"

5. Execute Response

Common actions:

• Push notification
• SMS message
• In-app content change
• Backend data logging
• Email trigger

Location Technologies Used

Most geofencing uses a combination, balancing accuracy with battery preservation.

Geofencing Use Cases

Retail Marketing

Geofencing is particularly powerful for retail businesses that want to drive foot traffic.

Store proximity:

• Trigger: Customer approaches store
• Action: Send deal notification
• Goal: Drive foot traffic

Competitor conquesting:

• Trigger: Customer enters competitor's area
• Action: Show your offer
• Goal: Intercept customers

Mall/shopping center:

• Trigger: Enter mall
• Action: Show store directory with your location highlighted
• Goal: Guide to your store

Restaurant & Food Service

Restaurants can use geofencing to capture nearby hungry customers at the right time.

Lunch hour targeting:

• Trigger: Office workers near restaurant at 11:30 AM
• Action: Send lunch special
• Goal: Capture lunch traffic

Pickup orders:

• Trigger: Customer approaches restaurant
• Action: Notify kitchen to start order
• Goal: Fresh food, no wait

Events & Entertainment

Venue engagement:

• Trigger: Enter stadium
• Action: Show seat upgrade offers
• Goal: Upsell

Festival navigation:

• Trigger: Different zones of event
• Action: Show nearby acts/vendors
• Goal: Enhance experience

Real Estate

Open house:

• Trigger: Near listed property
• Action: Send property details
• Goal: Generate leads

Neighborhood targeting:

• Trigger: People in target neighborhoods
• Action: "Thinking of selling?" ads
• Goal: Listing leads

Automotive

Auto dealers use geofencing for service reminders and new inventory alerts.

Service reminders:

• Trigger: Customer near dealership
• Action: "Due for service? Stop in today!"
• Goal: Service appointments

New inventory:

• Trigger: Previous customers nearby
• Action: "New models just arrived"
• Goal: Repeat sales

Geofencing vs Geotargeting

People often confuse these:

Geofencing

• Real-time boundary triggering
• Usually through an installed app (ad platforms offer looser, area-based versions)
• Triggers when crossing fence
• Precise geographic action
• Ongoing monitoring

Example: "Send notification when user enters this area."

Geotargeting

• Showing ads based on location
• Works through ad platforms
• Based on IP or device location
• One-time targeting
• No ongoing monitoring

Example: "Show this ad to people in Chicago."

Both are location-based marketing, but they work differently.

Geofencing and Store Locators

How They Connect

Store locators and geofencing serve related purposes:

Using Together

Complementary strategies:

1. Customer discovers you via store locator
2. They download your app (prompted on your website)
3. Geofences register for your locations
4. Future visits trigger personalized engagement

Store locator data informs geofencing:

• Where people searched (from locator analytics)
• Stores that get the most locator clicks (geofence priority)
• Coverage gaps (where not to fence)

StoreRocket + Geofencing

StoreRocket is a store locator that helps customers find you. We make it, so weigh our view with that in mind. The location data you manage there can inform geofencing strategies:

• Your store coordinates are geofence center points
• On plans that include analytics, a map of where people searched can help you choose where to start
• On plans with the API, your own software can read and update the same locations

StoreRocket gives businesses with several locations a store locator for their own website: import your locations from a spreadsheet, match it to your brand and paste one embed code. Create your locator with a free trial, no credit card needed.

Geofencing Best Practices

Get Permission

Requirements:

• App must request location permission
• User must grant permission
• Clear privacy policy
• Easy opt-out

Best practice: Explain the value exchange. "Allow location to get deals near you."

Size Your Fences Appropriately

Too small:

• May not trigger (GPS imprecision)
• Miss customers passing nearby

Too large:

• Triggers too far from store
• Feels irrelevant

Sweet spots:

• Store proximity: a modest radius around the store
• Mall/shopping center: larger, to cover parking and entrances
• Event venue: match actual boundaries
• Competitor: a tight radius around the site

Don't Over-Message

Problems with excessive messages:

• Notification fatigue
• App deletion
• Opt-outs
• Brand damage

Guidelines:

• Limit frequency per user
• Only message when valuable
• Allow preferences control
• Test message timing

Personalize When Possible

Generic: "Visit us today!"

Better: "Sarah, your favorite items are back in stock at our Downtown location."

Use purchase history, preferences, and context to make messages relevant.

Measure Everything

Track:

• Trigger rates (fences working?)
• Open rates (messages compelling?)
• Conversion rates (driving action?)
• Attribution (sales from geofencing?)

Iterate based on data.

Geofencing Challenges

Battery Concerns

Constant location monitoring drains batteries. Solutions:

• Use significant location change (less precise, less power)
• Limit active geofences
• Let OS manage monitoring

Accuracy Limitations

GPS isn't perfect:

• Urban canyons reduce accuracy
• Indoor positioning is weak
• Weather affects signals

Design fences accounting for imprecision.

Privacy Sensitivity

Location tracking is sensitive:

• Be transparent about data use
• Don't be creepy
• Honor opt-outs immediately
• Comply with regulations (GDPR, CCPA)

Platform Differences

iOS and Android handle geofencing differently:

• Both limit how many fences an app can monitor at once, and the limits differ
• Behavior varies by OS version
• Testing on both platforms essential

Geofencing Technology Stack

For Implementing Geofencing

Mobile SDKs:

• Radar (popular third-party)
• Bluedot
• Native iOS/Android APIs

Marketing platforms with geofencing:

• Foursquare (which merged with Factual in 2020)
• GroundTruth
• Various CDP/marketing automation platforms

Requirements for app-based geofencing:

• Mobile app (not possible with a website alone)
• Location permission from user
• Backend for defining fences and actions
• Message delivery system (push, SMS, etc.)

Frequently Asked Questions

Does geofencing work without an app?

Partly. Full geofencing requires a mobile app. Ad platforms can show ads to people in or near an area (geotargeting), but they can't trigger real-time actions when someone crosses a boundary.

Is geofencing creepy?

It can be if done poorly. Best practice: be transparent, provide value, don't over-message, and make opt-out easy. Done right, many customers welcome relevant, timely offers.

How accurate is geofencing?

It depends on the technology. GPS is most precise outdoors, Wi-Fi helps in cities and indoors, cell towers cover broad areas and Bluetooth beacons are very precise at short range. Design fence sizes accounting for imprecision.

What's the difference between geofencing and beacons?

Geofencing uses GPS/cell/Wi-Fi for outdoor areas. Beacons use Bluetooth for precise indoor positioning. Many systems use both for complete coverage.

Can geofencing target competitor locations?

Yes, this is called "conquesting" or "competitor geofencing." Check platform and local rules, and consider the ethics and how you message. Focus on your value proposition, not disparaging competitors.

Connecting It All

Store locators help customers find you (pull marketing).

Geofencing helps you reach customers near you (push marketing).

Together, they create a complete location marketing strategy:

1. Store locator captures interest and provides location data
2. Geofencing uses that data to engage customers proactively
3. Analytics from both inform strategy refinement

Build your location foundation first, and add geofencing when you are ready.

Create your locator →

Questions about location-based marketing? Contact us.

Related: Geofencing marketing guide | What is geocoding? | "Near me" SEO guide | Local marketing guide