January 29, 2021

Leena Sanap


The mobile marketing industry has grown phenomenally in recent times and it is observed that if you pick any mobile app development company in the market today, it is thriving. With the advent of better connectivity, the world is evolving at a great pace. This blog will introduce you to one such evolution that has helped marketers gain good returns. Let’s understand what Geofencing technology is all about.

What is Geofencing Technology?

A location-based service that uses GPS, Radio Frequency Identification (RFID), WiFi, or Cellular Data to trigger an action when the device enters-exits a particular parameter is called Geofencing.

The technology enables real-time tracking of movement in and out of the fencing set which is used to initiate target marketing. It is done via push notification, text, email, social media alert, or video advertisement.

There are two types of geofence namely, active geofence and passive geofence. An active geofence depends on user activity and uses location trackers like GPS/RFID to initiate action on the screen. Whereas, a passive geofence is always active and uses WiFi/Cellular Data to track location in order to initiate action in the background.

How Does Geofencing Work?

Geofencing technology has been very useful and continues to be of utmost importance for various businesses. It has been observed in recent research that the click-through rates are doubled by the use of this technology. It was also noted that 80% of users prefer personalized ads rather than generic ones.

Step1: Setting the Parameter

The user sets the parameter in which certain action is to take place. This is done by taking into consideration the proximity to the physical store and the density of the population around it. It also notes the traffic passing by the nearby routes.

Step2: Setting Initiation Point

The user sets the place and time of initiating the action. It can be the entry in a defined area or exit from it. It can also be a certain point inside the parameter. There are also factors like age, gender, web history and places visited that are taken into consideration while deciding the point of trigger.

Step3: Setting Type of Action

The user has to choose from options like a text, push notification, social media alert, email, or a call and set the action according to their requirements. The factors taken into consideration are network capability and type of device.

What are the uses of Geofencing Technology?

Social Networking

All social media platforms like Facebook, Instagram, Snapchat, Twitter, and more use geofencing technology in one way or another. It enables the delivery of highly personalized ads. For example, when a prospect is in the parameter, they would receive an alert to check in, snap a photo, or greet nearby friends.

Monitoring Assets

Geofencing technology assists in learning all the data of a particular asset be it a machine running in a particular area or a vehicle passing by frequently from the parameter. It helps in keeping an eye on the movement around the set location.

Marketing and Advertising

Businesses use geofencing technology to offer special discounts or deals to consumers nearby a particular outlet on the basis of population density at a certain time. They can target prospects at events, shows, and mass gatherings to gain maximum traction.

Optimizing Logistics

The geofencing technology can help in logistics by sending alerts on the arrival of vehicles and by tracking movement on the work floor. It can assist in accurate billing by keeping note of the total time a machine/human spends doing one task.

Receiving Feedback

Once a customer leaves a location like a theme park or restaurant, geofencing technology helps gain feedback by prompting a notification on the device. It helps in improving the experience as well as increasing brand advocacy.

Benefits of Geofencing Technology:

Better Engagement

The campaigns across multiple platforms assist in building better brand-consumer relations by improving engagements which also helps in retaining old customers.

Enhancement in ROI

Geofencing enables you to target the crowd in the vicinity of your store which allows you to closely analyze the response to your campaign. This helps you build better marketing strategies and gain good ROI with time.

Quality Data

Location-based marketing helps you fetch ample rich data that can be used in several ways like formulating branding strategies, making marketing strategies by understanding user behavior, and choosing the correct location to gain maximum business.

Real-time Analytics

Geofencing technology gives alerts and reminders in real-time which enables the business to serve efficiently. The analytics enables enterprises to improve their brand image as it makes them cater to specific requirements.

Competitive Advantage

With the help of this technology, businesses have an edge in competition as they can place geofences around their competitors and other busy locations offering better deals. This not only results in better revenue but also significantly increases brand awareness.

Tips for using Geofencing Technology

Limit Your Scope

Ensure that when you are choosing a location for implementing geofencing tactics, the area is well researched and has above average population density with people interested in products similar to yours. The general rule is to designate an area with a radius of a maximum of 5 mins from your physical location.

Clear Call to Action

As you are targeting people exceptionally near your location, it is of utmost importance that the message you send across has the clear intention of making them come to your place. The call to action should not be related to a general offer like ‘25% off for a week’ but more in terms of ‘last day to avail 50% off.

Use Multiple Marketing

Mix geofencing methods of marketing with other types of marketing like content, social media, video, and display advertisements to gain maximum results. Note that Google Adwords, Facebook as well as Instagram support geofencing at no extra cost.


To wrap it up, the market of geofencing is rising with logistics making a major part of it. It is estimated to reach $ 2 billion by the end 0f 2022. Proximity marketing gives good opportunities for businesses to gain more revenue by increasing localized sales. Big names in the mobile app development domain who are regarded well for their iOS and Android app development services are looking at the luring capabilities of Geofencing. It helps build loyal customers by upgrading the level of personalization in marketing plans.

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