In a time where personalization and precision in marketing are crucial, location-based technologies such as geotargeting and geofencing have become essential tools in digital marketing.
Many people confuse the two, and it’s not surprising.
They sound similar and are both built on geographic location. But there are significant differences, and when used correctly, they can support different parts of your digital strategy.
Let’s take a closer look at what geotargeting and geofencing actually mean, and when it makes sense to use one over the other.
What is geotargeting?
Geotargeting is about adapting your content or ads based on the user’s location.
This typically involves using IP addresses, GPS data, or mobile network data to determine where a user is located and, based on this, providing more relevant content.
It could be anything from offers in a specific city to language selection and local website customization, all with the goal of making the content more relevant and increasing the chance of conversion.
Examples of geotargeting:
- An online store displays shipping options and delivery times specific to the user’s region.
- A restaurant chain runs Meta ads only for users within a 20 km radius of one of their locations.
- An international brand shows the website in Danish and with local currency when accessed from Denmark.
What is geofencing?
Where geotargeting takes a passive approach, geofencing is more active.
Geofencing involves creating a virtual “fence” around a physical area—and when a user enters or exits this area, a specific action is triggered.
This could be a push notification, a message, a special offer, or something else entirely.
Examples of geofencing:
- You walk past a store and receive a push notification: “Come in for a free coffee – today between 2-4 PM!”
- An app detects that you’ve left a gym and sends your workout stats.
- A festival uses geofencing to send practical information to all attendees as soon as they arrive on site.
Geofencing generally requires that the user has an app installed and has granted location access.
What’s the difference – and when do you use which?
While both geotargeting and geofencing are based on geographic location, there are a few key differences worth noting.
Geotargeting:
- Used for advertising and content customization.
- Often based on IP addresses or browser data.
- The user doesn’t need to be in motion.
- Typically used in campaigns, web design, and Google Ads.
When does geotargeting make sense?
Geotargeting is ideal for digital campaigns that aim to increase relevance and conversion rates.
It can be used for everything from advertising to personalized landing pages and email content.
You can use geotargeting to ensure your Google Ads budget isn’t wasted on users outside your geographic market.
Geofencing:
- Used for trigger-based messages or actions.
- Requires access to the device’s GPS.
- The user must physically move into a defined area.
- Commonly used in apps, events, and local stores.
When does geofencing make sense?
Geofencing is ideal if you have a physical location where you want to create engagement, drive traffic, or deliver offers.
It’s a powerful technology for retail stores, events, fitness centers, and restaurants.
If you have a loyalty app, geofencing allows you to activate users the moment they are near your location, reducing the gap between notification and action.
Geofencing and geotargeting in combination?
It can be highly effective to use geofencing and geotargeting together to increase campaign relevance and engage users on the move.
Imagine a larger retail chain using geotargeting to run ads for all locations nationwide, while a geofence is triggered with a personalized offer when a user approaches one of the stores.
Data security in geotargeting and geofencing
Location-based marketing is constantly evolving, and both geofencing and geotargeting have their place—both individually and together.
However, it’s essential to consider data security and GDPR from the get-go.
Both technologies rely on collecting and using users’ location data.
With geofencing, for example, it’s important that users actively consent to allowing an app to access their location.
Additionally, it’s crucial to be transparent about why location data is being collected, how it will be used, and how it will be stored.
If you want to reach your customers with precision and relevance—whether they’re at home or walking past your store—it’s worth exploring how geotargeting and geofencing can be integrated into your strategy.
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