CIO magazine defines Geofencing as a location-based service in which an app or other software uses GPS, RFID, Wi-Fi or cellular data to trigger a pre-programmed action when a mobile device or RFID tag enters or exits a virtual boundary set up around a geographical location, known as a geofence.  

Mobile marketing has been taken to the next level with geofencing, which gives companies the ability to advertise specifically to potential customers within a certain geographic radius. Geofencing constructs a virtual boundary around a location using a combination of technologies, including:

The Global Positioning System is a network of satellites orbiting the earth that can triangulate an individual’s location to an accurate degree.


Radiofrequency identifiers

  • RFID or radio frequency identification chips tag and track objects for automatic identification and data capture.
  • Bluetooth technology contains small computer chips that use radio waves to connect with each other.
  • Beacon technology works with location services in smartphones and alerts apps when you approach or leave a location. It uses a Bluetooth signal that can tell when you’re close to a beacon, such as a checkout counter in a retail store.
  • Wi-Fi technology uses radio waves to provide wireless Internet and network connections.

While geofencing has actually been around for a while, the popularity of smartphones and mobile devices now makes it incredibly valuable as a marketing tool.

There is no doubt that hyper-targeted, location-based marketing is the next big thing in digital marketing.