How Display Ads and Geofencing Can Get You More Sales

Geofencing has emerged as an effective tool for location-based mobile advertising. By targeting customers in specific geographic areas, mobile marketing messages can be fine-tuned to be more relevant—and more effective. In turn, this leads to higher-quality leads, higher conversion rates, and more efficient ad spending.

And that all boils down to more sales.


While the concept of geofencing has been around for a while, the popularity of smartphones and digital media has made it a very effective digital marketing tool. Recent data from Yahoo indicates that 92% of mobile phones on the market are compatible with geofencing and that it successfully drives foot traffic to storefronts.

What Is GeoFencing?

Geofencing is the practice of placing virtual walls (digital ‘fences’) around specific geographic areas in order to target advertisements more accurately. Basically, it lets your dispensary serve up mobile ads to potential customers who are on their phones in a particular area (your fenced area).

Instead of casting a wide net and hoping for the best, it helps advertisers obtain high-quality leads that are more likely to convert and that may eventually become regular customers with a high lifetime spend value.

Dispensaries can use geofencing as a way to reach local audiences in their area and boost in-store visits.

It can be used to raise awareness of your storefront’s presence and offer unique promotions to the people who are most likely to be enticed by them, the local community. When packaged with effective CTAs (calls to action) that inspire viewers to act quickly, geofencing can get more local customers through the door.

However, geofences can actually be set up anywhere. Some businesses may find that setting up geofences around competitor locations or other locations that potential customers may frequent can help to lure them into their storefront instead. Customer data can also be used to target locations where similar customers may be.

Because geofencing avoids the ‘wide net’ approach to serving mobile ads, it’s usually a more effective use of marketing dollars.

With geofencing, less budget is spent on less relevant consumers. Plus, it gives businesses access to customer data and insights that would not otherwise be possible. An effective program can help dispensaries learn more about their customers and the way they engage with their business.

Geofencing and Customer Data

Geofencing gives businesses an effective tool with which to collect customer data.

For instance, geofencing can keep track of how many times a customer has visited your dispensary and how much time they spent there. Plus, the data collected can be integrated with data collected from other sources to build more complete customer personas and profiles.

Another advantage of using geofencing to collect data is that it allows for the personalization of marketing messages.

Data about customer interests, preferences, and purchases can be used to create personalized marketing messages that are more likely to appeal to that specific consumer. If a customer prefers a specific product or repeatedly takes advantage of a specific offer, personalized offers can entice them to keep purchasing.

Geofencing and SEO

By raising brand awareness among potential customers in a certain area, geofencing can work to set up the success of your SEO efforts. Ads displayed across the network raise brand awareness and seek to capture potential customers at the top of the funnel. If you’re ranking for several different keywords, potential customers further down the funnel who have already seen your ads are more likely to click-through when they see your ads or links in the future.

We know geofencing and mobile ads can be confusing. Let’s talk about them in person. Give us a call to learn how this strategy can help you increase your sales.