What is geofencing advertising?
Geofencing advertising shows ads to people whose phones are inside, or were recently inside, a virtual boundary drawn around a place. The boundary is the "geofence." It can surround a building, a neighborhood, or an event.
It's a form of location targeting that relies on device location data, often collected through apps.
How does geofencing advertising work?
A vendor draws a boundary on a map, then uses location data to identify devices inside it and show them ads in apps or on websites. Some vendors also reach devices that visited the area in the past.
The FTC's 2024 complaint against data company InMarket describes this model. The FTC said InMarket "cross-references consumers' location histories with advertising-related points of interest to identify consumers who have visited those locations," then sorts them into audience segments "to which it can target advertising based on their past behavior."
Does Google Ads offer geofencing?
Not at the level of a single address. Google Ads offers radius targeting, which shows ads to people within a set distance of a location, but with limits:
- Minimum size. "Radius targeting requires setting a radius of at least 1 km around any given location."
- Privacy thresholds. Google says it "only permits targeting for locations that adhere to minimum privacy thresholds where minimum area and minimum user counts are met."
- Small areas may not show. "If you target a small radius or very small location, your ads might only show intermittently or not at all."
Google's default setting also reaches people interested in a place, not only people in it. The default "Presence or Interest" option reaches people "likely to be in or regularly present in your targeted location, as well as people who have shown interest in your targeted locations." For a long-distance mover, that can include someone searching for movers in a city they're moving to. The "Presence" option limits ads to people located, or regularly located, in the area.
Does Meta offer geofencing?
Meta offers location targeting rather than precise geofences. It says location targeting reaches "people who live in, have recently spent time in or go often to" the chosen areas, including postal codes. Advertisers with physical locations can also target a radius around each store.
Meta adds that "complete accuracy cannot be guaranteed. You might see some ad impressions, or receive messages or leads from outside your location settings."
What are the privacy rules for location-based ads?
Location data is regulated, and the FTC has acted against companies that misused it. In 2024 the FTC finalized an order banning InMarket from selling or licensing precise location data. The FTC said the company "did not fully inform consumers and obtain their consent before collecting and using their location data for advertising and marketing."
The order also bars InMarket from products that target consumers "based on sensitive location data." The FTC noted that location data can include "sensitive information about where they live, work and worship."
For an advertiser, the practical step is to ask any geofencing vendor where its location data comes from and how consent was obtained. Questions about specific obligations belong with a lawyer.
When does location targeting make sense for a moving company?
Moving companies serve defined areas, so location targeting is standard practice. The choice is usually between:
- City, ZIP code, or radius targeting on Google and Meta, which reaches people in the service area at a scale the platforms support.
- Presence or Interest on Google, which can reach people planning a move into the area.
- Precise geofencing through a third-party vendor, which reaches smaller areas but depends on that vendor's location data and consent practices.
Paid search ads already reach people when they search for movers. See what are Local Services Ads and what is Performance Max.