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Geo-fencing, or geofencing, is a term that refers to software tools or applications that utilize global positioning systems (GPS) or radio frequency identification (RFID) to establish a virtual perimeter or barrier around a physical geographical area.

Geo-fence apps and tools monitor when mobile devices or other physical objects enter or exit an established geo-fenced area and provide administrators with alerts when there’s a change in status for a device. These alerts can take the form of text messages, e-mail notifications, phone calls or similar means of communication.

Popular Uses for Geo-Fencing

Geo-fencing is frequently deployed by companies to monitor and restrict the use of mobile devices beyond a geo-fenced perimeter. Another popular geo-fencing use is by advertisers to serve customized advertising content to potential or existing customers based on their current location and proximity to nearby retail locations.

Geo-fenced ads often provide higher conversion rates for companies as a result of being tied to a user’s location as well as taking into account in many cases their personal shopping history and preferences.

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