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How Does Geofencing Advertising Work?

Geofencing Advertising

Geofencing Advertising is a form of location-based advertising, where any time a potential customer enters a geographically designated area (called a ‘geofence’), a specific advertisement is served on their mobile device. For example, a customer walking in proximity to a clothing store may receive an advertisement for 20% off when he/she is within a defined distance from the clothing store.

The main benefit of geofencing is the ability to serve a hyper-targeted and customized ad to a potential customer when they are likely ready to purchase or within the area of a relevant business or competitor, ultimately leading to a greater chance of an in-store visit. As soon as the user has exited the ‘virtual fence’, they are no longer qualified to receive the ad.

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