Geofencing represents a form of location-based marketing that targets individuals as they enter, exit, or linger within specific physical areas.

This marketing technique utilizes GPS technology to delineate a designated area, creating a virtual boundary or “fence.” When a user and their device enter this fenced zone, it can activate outreach efforts from a particular brand, prompting the user to receive a text or push notification, provided they have opted into such a service. However, the user must grant the brand access to track their mobile device’s current location via GPS to enable geofencing.

For instance, a retail store may aim to attract attention when customers drive into the vicinity, or a vendor may seek to engage with passersby at a bustling concert venue. Geofencing essentially aims to identify a user’s location and leverage that information to deliver pertinent, valuable communications. Notably, the user’s location is continuously updated as they move, and notifications are triggered only while they remain within the defined boundaries of the fenced area.

Geofencing offers an alternative approach to time-based notifications, as it relies on the user’s location for triggering. This method can strategically draw customers to physical stores or restaurants through online channels, such as text messages or push notifications.