Businesses may use geofencing to target customers in a specific geographic region. Marketers can define a perimeter or border based on a real-world location using technologies like GPS and radio frequency identifiers. Then they can establish a geofence or virtual barrier in the region.
Consumers get location-based adverts on their devices when they enter the geofence. Geotargeted ads may be useful when you want to:

  • Boost foot traffic: To attract customers to their brick-and-mortar stores, brands might send mobile advertisements, promotions, or alerts.
  • Crowd engagement: It may be used by organizations and businesses sponsoring events, festivals, or concerts to attract people to their booths.
  • Target competitor customers: Businesses might create a geofence around a competitor location to attract more consumers.
  • Understand consumer behavior: Businesses might create a geofence around a competitor’s store to attract more consumers.

Benefits of Geofencing Marketing
Brands and marketers, whether they have an in-store or online presence, may profit from geofencing marketing. If you are considering jumping in, here are some benefits to think about.

Geofencing May Help With Local Marketing 
People are more interested than ever in getting out of their houses, especially on foot. It implies that catching individuals as they walk by stores is becoming increasingly crucial.
It is not a little increase: According to a Billups survey, 71% of customers are more interested in strolling around their homes or towns than they were previously. Many people would like to wander through outdoor pop-up businesses.
Because more people prefer to walk to stores and travel within their communities, location-based marketing has a lot of potentials—you do not have to worry about people driving past too quickly to get or utilize the notice.
The strategy works even when individuals drive by rather than a stroll. A firm experimented to test the impact of location-based marketing in improving breakfast sales, according to QSR magazine.
The participating establishment saw a 20% increase in in-store visits and a 26% rise in visitation during breakfast hours after implementing a geofence. 

Geofencing Marketing Ethical Considerations
When it comes to location-based ads, the primary ethical consideration is privacy. 
More than 80 nations have passed legislation governing digital privacy, and more proposals are expected to be introduced in the coming years.
Although most location-based ad solutions provide anonymized data, location data is still personal data. Furthermore, a person’s search history and browsing data must be kept secret.

The following are examples of this:

  • Consumers have the right to know what information is collected and why.
  • Consumers should give access to data obtained if asked.
  • People have the option of opting out of this data collection.
  • You may only use the data for the purposes you specify.

You’ve probably previously seen businesses follow these guidelines. The Sephora app, for example, provides customers the option of opting in or out of location services and store alerts.

Conclusion 
Geofencing marketing is a powerful tool for increasing traffic to your store, website, or social media platforms.
Remember that knowing where prospective buyers are is not enough: you also need to find out who your target demographic is and build adverts to target them specifically.
You may create geo-targeted marketing campaigns as long as you follow the appropriate measures. 
For best efficacy, 1990minds strongly advise that you track your performance, create appealing CTAs, and understand your target audience.