Facebook Geo-Targeting: How Location Targeting and Geofencing Work

Location targeting lets you show Facebook ads only to people in the places that matter to your business. Here is how it works and how to use it well.

Facebook Geo-Targeting: How Location Targeting and Geofencing Work
In this article
  1. What Is Geolocal Advertising?
  2. What Is Geofencing?
  3. What Is Geotargeting?
  4. How Does Facebook Determine Users' Location?
  5. How to Use Facebook Geo-Targeting
  6. Benefits of Geo-Targeting on Facebook
  7. Conclusion

Geo-targeting on Facebook helps businesses reach customers based on their location. In Meta Ads Manager, you can choose exactly which geographic areas your ads should run in, so they're seen by the people most likely to be interested in your product or service.

You can combine location with other targeting options, such as age, gender, interests and behaviours, to refine your audience further. Reaching people nearby, who are more likely to visit and engage with your brand, can make your campaigns much more effective.

Let's get started.

What Is Geolocal Advertising?

Geolocal advertising is online marketing focused on a specific geographic area. Unlike broader forms of online advertising, geolocal ads are shown only to people in a chosen area.

There are two main types of location-based targeting: geotargeting and geofencing. Both narrow your reach so your ads are seen by people who could realistically become customers.

What Is Geofencing?

Geofencing creates a virtual "fence" around a specific area, such as a stadium, event venue or shopping district, and shows ads to people within that boundary. It relies on location signals from mobile devices, such as GPS and IP address data. On Facebook, you can do this by dropping a pin on the map and setting a small radius around it.

Geofencing is useful for targeting a crowd in a specific place, which is why it's often used around events. It has limitations, though: the people in an area change throughout the day, and a tight fence on its own doesn't tell you anything about who those people are, so it works best combined with other targeting.

What Is Geotargeting?

Geotargeting shows ads to people based on where they are or live, such as a country, region, city, postcode or radius around an address. It makes sure your ads are seen by people for whom your business is geographically relevant.

For example, if you run a bookshop and café, you might target 18- to 35-year-olds who enjoy fantasy novels and follow food content. Adding geotargeting limits that audience to people within, say, 10 miles of your shop.

You can use geotargeting both to include and to exclude locations. Exclusions are helpful for businesses with several branches close together, so people see ads for the location nearest to them rather than one further away.

How Does Facebook Determine Users' Location?

Meta estimates where people are using signals such as the location in their profile, their IP address, information from their devices (if location services are enabled) and other activity on its apps.

When you set a location in Ads Manager, you can choose who to include:

  • People living in or recently in this location: The default option. It reaches people whose home is in the area as well as people who have recently been there.
  • People traveling in this location: People whose recent location is in the area but who are more than about 100 miles from home, useful for tourism and hospitality businesses.

Choose the option that matches your goal. A local gym wants residents; a hotel or tour company may want travellers.

How to Use Facebook Geo-Targeting

Step 1: Open Ads Manager

Go to Meta Ads Manager and create a new campaign with an objective that suits your goal, such as awareness, traffic or sales.

Step 2: Define your audience

At the ad set level, build your audience. Think about who is most likely to be interested in your offer, so you only spend money reaching people who'll pay attention.

Step 3: Select your locations

In the Locations section, add countries, regions, cities, postcodes or specific addresses. When you choose a city or address, you can set a radius around it, for example 10, 20 or 50 miles, or drop a pin on the map. You can also exclude areas.

Note that for ads in special categories, such as housing, employment and credit, Meta restricts targeting options, including location targeting, to prevent discrimination.

Step 4: Target around your business locations

If you have physical locations, target people within a set distance of each one. This is ideal for restaurants, retail stores and any business that wants customers to visit in person. Ads can include directions or a "Get directions" call to action to encourage visits.

Benefits of Geo-Targeting on Facebook

Drive sales during events and promotions

When you're running a sale, tell people about it in advance, then focus your budget on people near your store once it starts, so more people come in to take advantage. To create a sense of urgency:

  • Target people near your store with messages about the sale.
  • Customise ads for each location in a chain to promote local deals.
  • Share photos of the in-store atmosphere during the sale.
  • Remind people the sale is ending soon.
  • Highlight popular items so customers shop now.

Planning your ad spend around sales and product launches helps you get the most out of your budget.

Build local loyalty

Location targeting can help build loyalty and advocacy. Showing what's happening in the neighbourhood makes people feel connected to their area and to your business. Some ideas:

  • Talk about the things in the neighbourhood you're proud of.
  • Feature well-known local people and partners, with their permission.
  • Show your business taking part in community events.
  • Share testimonials from local customers explaining why they choose you.
  • Work with local influencers to increase exposure.

Be genuine. Local audiences can tell when a business is sincere, and authenticity is what turns customers into advocates.

Tap into traffic from local landmarks

Popular landmarks attract visitors and plenty of social media attention. Use location targeting to show ads to people around those places, with messaging that connects the landmark to your business. Ideas include:

  • Linking your brand's story or values to the landmark.
  • Offering a discount to customers who show a photo of their visit.
  • Sharing an interesting fact about the landmark.
  • Recommending hidden gems nearby, including your business.

Conclusion

Geo-targeting on Facebook is extremely valuable for businesses that want to reach people in specific places. Showing ads to people in a defined area makes them more relevant, which can lead to higher engagement and a better return on ad spend.

To get the most from it, combine location with interests and behaviours, consider lookalike audiences to find new customers in your area, and track results in Ads Manager. Geo-targeting is a powerful tool for driving both online and in-store results, and it deserves a place in any local Facebook advertising strategy.

Good luck!

Gencept Editorial Team

Editorial Team