Geofencing is one of the most interesting new technologies in mobile marketing. In essence, it enables companies to concentrate their advertising in certain regions. To put it another way, if you own a coffee shop in the heart of Seattle, you may notify all Android users nearby via push notifications of promotions or new menu items.

However, geofencing isn’t limited to cafes and small enterprises. Imagine a large box retailer sending you a coupon for a product you were looking at online as you entered one of their stores using geofencing. Or perhaps a sports team will email you a reminder to purchase tickets for the next game as you pass the venue. There are almost no limits to how location data can be used to make advertising more timely and relevant.

So how does Android’s geofencing function? It uses cellular data, Wi-Fi, and GPS to pinpoint a device’s location. If the device enters a certain geographic area (the “fence”), the app or service can start doing something, like sending a push notification or showing a personalized ad. The barrier can be configured in any way, and its dimensions can even be changed in the present.

The ability for businesses to reach customers at the precise time when they are most likely to be interested in what they have to offer is one of the main advantages of geofencing. For instance, as the lunch rush begins, a restaurant can push a notification to every Android user within a mile of their location. If a customer has been browsing the company’s website but hasn’t made a purchase yet, the store may send them a special offer as they pass by.

Geofencing also lets businesses track and measure how well their advertising works. Using geofencing, businesses can know exactly how many people got a push message and how many of them went to the store or bought something. This lets them change their advertising strategies and make smarter decisions about where to put their efforts.

Of course, geofencing could also have certain drawbacks. Privacy is a problem. Even though geofencing is opt-in, which means that a user has to give permission for an app or service to use their location data, some people might still feel uncomfortable about being watched.