Advertising intermediate 45-60 minutes

How to Implement Geo-Fenced Advertising Campaigns

Learn how to target customers based on their precise physical location using advanced geo-fencing techniques for your Australian business.

Sarah 29 January 2026

# How to Implement Geo-Fenced Advertising Campaigns

In the competitive Australian retail and service landscape, reaching the right person at the right time is the difference between a wasted click and a loyal customer. Geo-fencing allows you to create a virtual boundary around specific locations—like your storefront, a competitor’s shop, or a local event—triggering targeted ads to mobile users the moment they enter that zone.

Whether you are a café in Fortitude Valley looking to capture the morning foot traffic or a tradesman targeting specific new housing developments in the Gold Coast, this guide will show you how to set up a high-performing geo-fenced campaign.

Prerequisites: What You’ll Need

Before we dive into the setup, ensure you have the following ready:
  • A Google Ads or Meta Ads account: (Active and with a verified payment method).
  • High-quality creative assets: Images or videos tailored to mobile viewing (9:16 or 1:1 ratios).
  • A clear offer: Geo-fencing works best with immediate, high-value calls to action (e.g., "Show this ad for 10% off today").
  • Location Data: A list of addresses or coordinates for the areas you wish to fence.

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Step 1: Define Your Strategic Locations

Don't just fence your own shop. Think about where your ideal customers spend their time. Are they at a competitor’s location? Are they attending a trade show at the Brisbane Convention & Exhibition Centre? Action: Create a spreadsheet with three columns: Location Name, Address, and Radius (e.g., 500 metres).

Step 2: Choose Your Advertising Platform

While several specialist platforms exist, most Australian small businesses should start with Google Ads (Display Network) or Meta Ads (Facebook/Instagram).
  • Google Ads is excellent for intent-based targeting and appearing on local news sites or apps.
  • Meta Ads is superior for demographic layering (e.g., targeting people in a specific suburb who are also interested in 'home renovation').

Step 3: Create a New Campaign

Log into your chosen platform. For this guide, we will focus on the setup logic used in Google Ads, as it offers the most precise radius targeting.
  • Select New Campaign.
  • Choose Brand Awareness or Local Store Visits and Promotions as your objective.
  • Select Display as the campaign type to ensure your ads appear in mobile apps and websites while users are on the go.

Step 4: Configure Precise Location Targeting

This is the core of geo-fencing.
  • Scroll to the Locations section.
  • Click Advanced Search.
  • Select the Radius toggle.
  • Enter your target address (e.g., "123 Queen St, Brisbane City").
  • Set your radius. Pro Tip: For true geo-fencing, keep this small—between 500 metres and 2 kilometres.

Screenshot Description: You should see a blue circular overlay on a map of your chosen suburb, indicating exactly where your ads will be eligible to show.

Step 5: Refine with Location Options

Google and Meta often default to "People in, or who show interest in, your locations." This is a trap for geo-fencing! You want to change this to "Presence: People in or regularly in your targeted locations." This ensures you aren't showing ads to someone in Perth who just happened to search for a Brisbane restaurant yesterday.

Step 6: Set Your Mobile-Only Device Targeting

Geo-fencing is most effective on mobile devices.
  • Go to Additional Settings > Devices.
  • Choose Set specific targeting for devices.
  • Untick Computers and Tablets, leaving only Mobile Phones selected. This ensures your budget isn't spent on people sitting at home on desktops outside your fence.

Step 7: Layer Your Demographics

Just because someone walks past your shop doesn't mean they are your customer. Layer your fence with demographic data. If you run a high-end boutique, restrict your ad delivery to the top 20% of household income brackets or specific age groups relevant to your brand.

Step 8: Build Your "Hyper-Local" Creative

Your ad copy must acknowledge the user's context.
  • Bad Ad: "We sell Great Coffee."
  • Good Ad: "Just around the corner? Stop into [Business Name] on Edward St for a $3 Flat White before 10 AM!"

Use vibrant colours that stand out against the white backgrounds of most mobile apps.

Step 9: Set a Frequency Cap

Because geo-fences are small, the same person might trigger the fence multiple times a day. You don't want to annoy potential customers. Action: Set a frequency cap of 2 or 3 impressions per user per day. This keeps your brand top-of-mind without becoming a nuisance.

Step 10: Implement a Tracking Conversion

How do you know it worked? For local businesses, the best metric is Location Extensions or Store Visit Conversions. Ensure your Google Business Profile is linked to your Google Ads account so you can track how many people clicked for directions after seeing the ad.

Step 11: Launch and Monitor

Review your settings one last time. Ensure your ABN is verified in your account settings (a requirement for Australian advertisers) to avoid any mid-campaign pauses. Hit Publish.

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Pro Tips for Success

  • The "Competitor Conquest": Place a 500m fence around your direct competitor's location. Offer a "switch and save" discount to lure customers away.
  • Time of Day Matters: If you are a lunch spot, only run your geo-fence from 11:00 AM to 2:00 PM to maximise your budget when hunger strikes.
  • Check the Reach: If your radius is too small (e.g., 100m), your ad might not serve because the audience size is too low. If you see zero impressions after 48 hours, expand your radius slightly.

Common Mistakes to Avoid

  • Broad Targeting: Forgetting to change the location setting to "Presence" only, resulting in ads showing to people hundreds of kilometres away.
Vague CTA: Not giving the user a reason to act now*. Geo-fencing is about immediate action.
  • Ignoring Negative Locations: If there is a park or a lake inside your radius where people aren't likely to shop, you can't always exclude them, but you should be aware of where your "waste" might be.

Troubleshooting

  • My ads aren't showing: Check your bid. Hyper-local targeting is competitive; you may need to increase your Cost Per Click (CPC) to win the auction in a small area.
  • Low Click-Through Rate (CTR): Your creative might be too generic. Make sure the ad mentions the specific neighbourhood or a landmark nearby.
  • Budget spending too fast: Your radius might be too large, or you haven't set a frequency cap. Narrow your fence or restrict the hours of operation.

Next Steps

Once your geo-fencing is live, the next step is to look at Remarketing. You can create a list of people who entered your geo-fence and clicked your ad, then show them follow-up ads for the next 30 days to keep your brand top-of-mind.

Need help setting up a precise boundary for your next campaign? The team at Local Marketing Group specialises in hyper-local Australian advertising. Contact us today to get started.

Geo-fencingLocal AdvertisingGoogle AdsMobile Marketing

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