Targeting advertising by where a device has been is a genuine capability, and it is sold with claims that outrun it. The underlying data comes from applications that report location, its accuracy varies enormously, and the fraction of people in any physical place whose devices are reachable is smaller than the pitch implies. None of that makes it useless. It does mean the questions to ask are about data provenance, consent and measurement rather than about the size of the audience.
Ask where the location data comes from
Reputable providers source from applications whose users granted location permission, and they can describe the chain. Ask which data partners are used, how consent was obtained, what happens with sensitive locations such as clinics and places of worship, and what the retention period is. A supplier who cannot answer these is reselling something they have not examined, which is now a legal exposure as well as an ethical one.
Precision and reach are both lower than the pitch
Accuracy varies by device, by setting and by whether the application was open, and in dense urban blocks the difference between one building and its neighbour is frequently beyond it. Reach depends on how many devices in the area report location at all. Ask for the expected reachable audience for your specific fence before buying, and treat very tight fences with scepticism.
Attribution claims deserve the most scrutiny
Foot-traffic attribution compares device visits against a control and models the rest, so it is an estimate with a methodology, not a count. Ask what the control group is, what the confidence looks like, and whether you can see the methodology document. A supplier reporting store visits as a hard number is presenting a model as a measurement.
Use it where the physical premise is the point
It earns its premium for targeting event attendees, competitor locations where permitted, trade shows, campuses and service areas where physical presence genuinely indicates intent. It is poor value as a substitute for ordinary local targeting, which is cheaper and reaches more people. Decide which of those you are actually buying.
Questions people ask about geofencing marketing company
Is geofencing legal?
Location advertising is lawful in general and increasingly constrained in specifics, particularly around sensitive locations and consumer privacy rights in several states. Involve whoever owns privacy compliance in your business before running it, and require contractual assurances from the supplier about consent and data sourcing.
Can we target a competitor's premises?
Technically it is common practice; whether it is advisable depends on the category, the size of the fence and what the creative says. Where the location implies something sensitive about the person, the practice is both restricted and reputationally risky, so get advice rather than assuming.
What does it cost?
Media prices are typically well above ordinary display because of the targeting layer, and there is often a minimum spend and a platform fee. Ask for the media cost and the supplier's margin separately, since packaged pricing here frequently conceals a substantial resale markup.
How should we measure it?
A holdout area or a matched control period is the most credible approach, with any vendor-supplied visit attribution treated as directional. If the campaign has a redeemable offer, a location-specific code gives you a hard number to sit beside the modelled one.