Capturing Retail Traffic via Geofencing: Visits Are on the Rise, and Advertisers Can Capitalize on the Trend

A Look at Retail Traffic Numbers

Pacer.ai tracks foot traffic in retail centers and restaurants. It provides monthly reports on trends. At the end of the year, the company’s assessment revealed increases at indoor malls and open-air centers were 1.5% and 1.7% respectively. Holiday shopping was a primary driver with large spikes in November and December.

Their February analysis concluded that traffic is stable, but there were declines. Despite changing economics, the company attributed the decreases more to comparisons from 2024, which was a leap year, and inclement weather in many areas of the country. Valentine’s Day created a surge in visits, as consumers spent billions on the holiday.

With retail traffic steady, it’s an opportunity to engage advertisers. They can capture the attention of these consumers with smart geofencing campaigns.

Geofencing Campaign Ideas for Retail Traffic

Explore ideas to present to retail and restaurant advertisers.

Restaurants in shopping centers

After a day of shopping, consumers often choose a spot close by to have a meal or grab a drink or coffee. Present geofencing ad options such as:

• Instant promotions for same-day visits (e.g., discounts, buy-one-get-one)
• Appealing to their hunger by using video ads focusing on top menu items
• Get-it-to-go offers to prompt people to stop before they leave to pick up some snacks

Specialty retail

In this niche, local shops may have a narrower audience, but they can attract curious customers. Ads that have a humor element could be fun here. Remember, the ad content should pique their interest in visiting a place they’ve likely never been to before.

Here’s an example. Local pet stores have unique offerings that big-box stores may not. There are also millions of pet owners in the U.S., most of whom spend a lot of money on their furry friends. Any ad with an adorable pet could drive foot traffic.

Another would be stores that focus on home goods. Recommend ads that target one specific group of items like cookware or home décor. These can be aspirational ads that also include the benefits of the product. A nice cooking pan can be beautiful, but buyers want to know what makes it unique. Is it the material? Warranty? Usability? Make that the theme of the ad.

Clothing boutiques

Fashion is a visual product. How it looks to a consumer on a screen has much to do with their interest level. Video geofencing ads can be powerful here, focusing on best-selling items, new seasonal merchandise or end-of-season sales. An instant promo would work here, too, since it’s only good for that day.

Entertainment spaces

Outlet and traditional malls often have entertainment venues, too. Examples include arcades, family-friendly spots or VR (virtual reality) exhibitions.

Consumers who spend most of their day at these places may want to take a break and have some fun. Geofencing ads that use video to tease the experience could drive consumers to explore. Offering a promotion or free gift may be what gets them through the door.