The Benefits of Geofencing

Have you ever noticed an ad on your mobile device from a store that you were currently visiting or had just visited? Oftentimes people view this as a coincidence when in reality, they are at the end of a marketing tactic called geofencing.

Geofencing utilizes a virtual perimeter set around a geographical location. Within this hypothetical “fence”, companies are able to display ads (through apps or websites) to the mobile IP addresses that fall inside the area. These mobile IP addresses are unique identifiers on mobile devices. By utilizing these unique identifiers to target specific prospects that fall within a specified area, businesses can be sure to reach the right people at the right time.

The Benefits of Geofencing

Geofencing can allow businesses to increase ROI (return on investment). By reducing the number of advertisements sent by targeting only people that fall within a specific location, businesses can target quality prospects and spend less money to do so. This can decrease the marketing budget while increasing the chances of quality conversions.

If a business sends out an advertisement to a wide range of people all over, a good majority of those prospects will not be in the general area of your business. However, if a geofence perimeter is set within a 1-mile radius of a business location, it is likely that the ad will reach prospects that are more likely to convert because of proximity and convenience. Geofence targeting is a great way to keep a business top-of-mind by serving relevant ads to customers.

Types of Geofencing

While there are endless ways that a company utilizes geofencing to best suit their marketing objectives, three of the main types of geofence marketing include standard, addressable, and rewind.


Standard geofencing displays advertisements to mobile IP addresses that cross the boundary of the geofence. In addition, it allows businesses to monitor the IP addresses that come through the targeted area and up to three miles outside the perimeter. This can ensure that a company is best taking advantage of a prospect’s patterns.


Addressable geofencing allows a campaign to target a specific address list (address, city, state, and zip code). Ads then target IPs, based upon the address list, that fall within the perimeter.


Rewind targeted geofencing allows mobile IP addresses to be captured from specific locations or events up to a year prior. A campaign is then built based on those IP addresses to serve ads to mobile devices.

How to Utilize Geofence Marketing

Geofencing is a fantastic marketing tactic for businesses that are looking to increase store traffic at a brick-and-mortar location. By targeting the mobile devices of people nearby the physical store, companies can encourage prospects to stop in. Reaching the right people at the right time can help increase the likelihood of a conversion.

Does geofencing sound like a strategy that would benefit you or your company? Media Venue can help. We provide a plan to reach prospects that are likely to be interested in your business and make a conversion. Contact us today for more information. Enhance your marketing investment with Media Venue!

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About Our Blogger

Robert (Robbie) Stephens has extensive experience in all aspects of business. With 20 years of customer service experience, 10 years of technical experience, and 5 years of digital marketing experience, Robert is excited to be able to provide his SEO and Content Management services to his clients.

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