5 Powerful Types of Geofencing and How They Work

A Simple Guide for Local Businesses, Marketers & Brands

Geofencing is one of the smartest ways to reach people with the right message at the right time. By setting up a virtual boundary around a physical location, businesses can trigger ads, notifications, or offers when someone enters (or leaves) that area.

It’s location-based marketing that actually works, and it’s not as complicated as it sounds.

At Moderne Communications, we help brands use geofencing to connect with people in powerful, hyper-local ways. In this post, we’ll walk you through the main types of geofencing, how they work, and how to pick the right one for your business.

1. Store-Based Geofencing

Best for: Retailers, restaurants, local services

This is the most common use of geofencing. You draw a digital “fence” around your own location (or several), and when people with smartphones enter that zone, they get served ads or offers, on apps, websites, or social media.

Example: A coffee shop geofences a 1-mile radius and sends a coupon to people nearby around 8am.

2. Event-Based Geofencing

Best for: Event sponsors, vendors, or businesses near events

Target people attending a concert, sports game, festival, or conference. You can promote your booth, drive foot traffic, or retarget attendees later.

Example: A clothing brand geofences a music festival and runs ads for exclusive offers and discounts.

3. Competitor Geofencing

Best for: Businesses in competitive markets

This one’s clever, you geofence your competitors’ locations and target their customers. It’s a bold way to introduce your brand or offer something better. As they are your competitor, you already know that the target market is correct.

Example: A fitness studio geofences nearby gyms and shows ads for a free first class.

4. Neighborhood or Zip Code Geofencing

Best for: Real estate, home services, local promotions

Instead of one single location, this method targets a larger area. It’s great for awareness campaigns or industries where people aren’t tied to a specific business address.

Example: A real estate agent runs ads in a high-income zip code promoting luxury listings.

5. Custom Shape Geofencing

Best for: Large campuses, parks, shopping districts

With advanced tools, you can draw very specific shapes, like a college campus or multiple stores in a mall. This gives more control and accuracy.

Example: A quick-service restaurant geofences every entry point of an outdoor shopping center.

How to Choose the Right Type

Start by asking:

• Where is my audience?
  
  
• What action do I want them to take?
  
  
• Am I targeting people near me, or near someone else (like a competitor or event)?
  
  

From there, it’s about choosing the right radius, the right message, and the right platform to serve your ads (we can help with that).

Final Thoughts

Geofencing isn’t just for big brands. It’s affordable, targeted, and incredibly effective when done right. Whether you're a local business or a national brand looking for location-based impact, geofencing is one of the smartest tools in the modern marketing toolkit.

At Moderne Communications, we help clients set up and manage geofencing campaigns that drive real results.  Want help planning your geofencing strategy?  Contact us to get started with a location-based campaign that delivers real results.