How to Use Geofencing & Geotargeting to Win Competitors’ Customers
Learn how to combine geofencing and geotargeting to reach competitors’ customers, with examples, a step-by-step playbook, best practices, and FAQs.
Competing with bigger brands or nearby businesses can feel like an uphill battle. But what if you could place your ads directly in front of people already shopping at your competitor’s location? That’s exactly what you can do with geofencing and geotargeting. These location-based strategies help you connect with the right people, at the right time, in the right place—turning competitor foot traffic into your own customers.
Why Location-Based Marketing Works
Most shopping decisions are influenced by what people see on their phones while they’re out and about. Your competitor’s customers are already on mobile, actively browsing and comparing. Geofencing and geotargeting let you meet them where they are—digitally—without needing to lure them into your store first.
What Is Geofencing?
Geofencing is the practice of drawing a virtual “fence” around a real-world location. When someone carrying a smartphone enters that zone, you can serve them digital ads on apps, mobile websites, and social platforms—even after they leave the area.
Key Features of Geofencing:
- Targets based on real-world movement
- Shows ads on mobile apps and sites your customers already use
- Can re-engage people after they leave the geofenced location
- Measurable outcomes (clicks, calls, form fills, in-store visits)
What Is Geotargeting?
Geotargeting narrows down who sees your ads by layering filters—so you’re not advertising to everyone who passes through an area, just the people most likely to buy.
Examples of Geotargeting Filters:
- Search intent (e.g., “kitchen remodeler near me” within 5 miles of a competitor)
- Contextual interests (fitness enthusiasts near a big-box gym)
- Household profiles (homeowners visiting a hardware store)
Why Target Competitors’ Customers?
- High purchase intent: They’ve demonstrated interest in your category.
- Perfect timing: Ads appear during or shortly after an in-person visit.
- Efficient spend: You’re focusing budget on high-probability buyers.
Step-by-Step Campaign Playbook
- Map competitor locations.
- Create tight geofences.
- Layer geotargeting.
- Develop irresistible offers.
- Use funnel-aware creatives.
- Retarget engaged users.
- Measure what matters.
Industry-Specific Examples
Restaurants – Geofence chain restaurants; offer “Order now, 10% off your first online order.”
Fitness – Boutique studio geofences gyms; highlight community and offer “First class free.”
Retail – Boutique geofences mall traffic; run Instagram/display ads for unique styles.
Home Services – Contractors geotarget hardware stores and active remodel neighborhoods.
Healthcare & Medspa – Target clinics and pharmacies; promote same-day availability or specialties.
Best Practices
- Start small, then scale.
- Rotate creative every 2–3 weeks.
- Mind your radius: building-level fences work best.
- Use clear CTAs like “Book now” or “Get quote.”
- Respect privacy and brand voice.
Frequently Asked Questions
Is geofencing legal?
Yes. Campaigns use aggregated, privacy-safe signals. You’re not tracking individuals—just serving ads to audiences formed by location patterns.
How much budget do I need?
Local campaigns can start with a few hundred dollars per month. Targeting is precise, so cost per acquisition is often competitive with broader channels.
Does this work for service businesses?
Absolutely—contractors, salons, medspas, landscapers, auto services, and more.
How do I measure success?
Track CTR, leads, calls, bookings, and verified store visits. Align KPIs with your offer.
What’s the difference between geofencing and geotargeting?
Geofencing is the where (the boundary). Geotargeting is the who (filters like intent and interests). Using both multiplies results.
How HeyNeighbor Makes It Simple
At HeyNeighbor, we take the complexity out of location-based ads. With just a few clicks, you can:
- Geofence competitor locations you choose
- Layer geotargeting filters for precision
- Run retargeting automatically
- Track results in plain English dashboards
Ready to start converting your competitors’ foot traffic?
Launch your first campaign today at HeyNeighbor.
