Location matters in digital marketing. Whether you run a retail store, service a specific area, or boundary (or virtual fence) to trigger real-time interactions when a mobile device enters a designated area.
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- Geotargeting focuses on the physical location or inferred location of users, delivering more generalised but still localised content.manage fleet vehicles, understanding how to use a customer’s geographical location can dramatically improve your marketing strategy. Two powerful tools-geofencing and geotargeting-allow businesses to tap into location data to reach mobile users with precision. But while both use location-based technology, they operate in different ways.
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Key Takeaways
- Geofencing uses a virtual
- These tactics rely on technologies like GPS, Wi-Fi, RFID, and cellular data to deliver timely messages and targeted advertising.
- Combining both methods with local SEO and conversion rate optimisation can improve customer engagement and drive more conversions.
What Is Geofencing?
Geofencing creates a virtual perimeter around a defined area-such as a shopping strip, event venue, or delivery zone. When a person with a mobile device enters this geofenced area, geofencing technology triggers specific actions like sending a push notification, a text message, or showing an in-app promotion.
It relies on technologies such as global positioning systems (GPS), Wi-Fi, radio frequency identification (RFID), and cellular data to identify a device’s location.
Example: A business near a movie theatre sets up a geofence to send promotions for a dessert bar to anyone who enters the car park between 6–9pm. That’s location-based marketing in real time.
Best for:
- Retail stores promoting in-store sales
- Fleet management geofencing to track driver movements
- Job sites needing entry/exit monitoring
- Delivery and logistics businesses optimising drop-offs
- Boosting foot traffic with offers near competitors
How Geotargeting Works
Geotargeting uses location tracking and location data to serve ads or content based on a user’s geographic location, but not necessarily in real time. Instead of waiting for a device to enter a boundary, it delivers messages based on data collected-like a user’s IP address, previous searches, or profile information.
Think of it as more passive but broader in scope. A digital marketing campaign using geotargeting might advertise home cleaning services only to people living within a specific area, say, the Eastern Suburbs of Sydney, without relying on their live location.
Ideal for:
- Region-specific ads and search campaigns
- Serving different website content based on location-based services
- Excluding users from sensitive areas you don’t serve
- Creating location-based messaging tied to seasonal or regional trends
Comparing the Two Approaches
| Feature | Geofencing | Geotargeting |
| Trigger | Entering a defined area (via mobile devices) | User’s location history or IP address |
| Technology | GPS, Wi-Fi, RFID, cellular data | IP-based, user-submitted info |
| Message Timing | Real-time (e.g. text or app notification) | Scheduled or triggered based on behaviour |
| Precision | High-down to specific longitude coordinates | Moderate-broader geographic location like postcode |
| Use Case | Sending promotions, fleet monitoring, live alerts | Search ads, landing page personalisation |
| Device Dependency | Needs location services enabled | Works without live location data |
Choosing the Right Strategy
If your business operates in a designated area where customer proximity matters, geofencing offers a more immediate, actionable way to engage users. For example, cafés, beauty salons, and small retailers can benefit from user-defined geofencing to bring in more customers when they’re nearby.
On the other hand, if your goal is a broader reach or content localisation-like advertising to homeowners in a specific suburb-then geotargeting provides a more cost-effective solution.
In many cases, combining both strategies makes sense. A car wash business might use geotargeting to run suburb-specific Facebook ads, while implementing active geofences around busy intersections to catch passing mobile users with a special offer.
Implementing Geofencing in Business
Getting started with geofencing means choosing the right geofencing software. Most tools integrate with mobile apps, third-party platforms, or custom systems, and offer features such as:
- Trigger notifications when a device enters a particular region
- Set up virtual boundaries around delivery locations
- Define specific zones for alerts or ad serving
- Analyse data collected for insights on customer experience and movement
Industries like security, fleet management, and event marketing are increasingly using geofencing capabilities to improve efficiency, send timely messages, and target prospects based on their real-world movements.
For instance, a company managing trucks can use fleet management geofencing to monitor when drivers enter or leave depots, helping improve routes and reduce downtime.
Privacy Concerns and User Consent
With the rise of location-based technology, concerns around data collection and privacy are legitimate. Australian businesses must ensure compliance with the Privacy Act when using any location-based services. That includes:
- Informing users when location tracking is active
- Offering opt-in/opt-out for push notifications
- Securing data through encrypted systems
- Avoiding unnecessary tracking in sensitive areas
Transparency builds trust-and ultimately leads to better user experiences.
Real-World Example: Sydney Retail
A small chain of high-street clothing stores in Sydney used geofencing solutions to target shoppers within a defined area near Pitt Street Mall. They sent a 15% discount via text message when a shopper was within 500 metres of the store. Combined with a suburb-level geotargeted campaign on Google Ads and a local SEO boost, the business saw a 40% increase in customer engagement and a noticeable bump in weekend sales.
Maximise Results With Conversion Focus
Whether you’re sending promotions to someone who just parked near your storefront or showing ads only to customers in your service radius, combining these location strategies with strong on-site experiences is critical.
- Add suburb-specific content to landing pages
- Use dynamic copy that reflects the user’s location
- Improve conversion rates with clear CTAs and fast-loading mobile designs
Need help building a complete strategy? Check out our full range of digital marketing services to see how Amire can support your business goals.
Final Thoughts
Geofencing and geotargeting both offer precision tools to attract and convert potential customers based on their geographical location. By using a mix of real-time geofencing technology and broader geotargeting tactics, you can serve relevant, timely, and location-driven content that enhances the customer experience, improves ROI, and drives more foot traffic to your business.
