We rely heavily on location-based services in everyday life without enough appreciation of the technology that powers them. When you’re finding the fastest route to work or your friend’s house, there’s geolocation technology in use. Besides personal use, this technology also sees heavy use across different industries for a multitude of reasons. 

So, what exactly is the geolocation technology definition? This blog answers this question in detail and also walks you through different types of geolocation technologies. So, let’s start!

A geoPlugin screenshot showing a man pinpointing a location on the left side and a text written on the right side.

What Is Geolocation Technology: A Simple Definition

To put it simply, geolocation technology is any technology that can identify the physical locations of smart devices. This device can be a mobile phone, tablet, computer, or any of the other Internet-connected devices. 

Geolocation’s accuracy can also vary. It can either pinpoint accurate or approximate location depending on the method and purpose of geolocation. Common geolocation technologies include GPS, IP geolocation, WiFi, Bluetooth, and Cellular towers (more on this later).

The data that geolocation technology pulls from a device includes more than just geographical coordinates. This, again, depends on the needs of the entity performing geolocation.

Here’s what geolocation data typically includes:

  • Country
  • Region
  • City
  • ZIP code
  • Latitude and Longitude coordinates
  • Timezone
  • ISP name
  • And a host of other miscellaneous information

Image showing a GPS system working inside a car.

5 Types of Geolocation Technologies

There’s more than one way to geolocate devices. Below are the key ones.

1. GPS

GPS, short for Global Positioning System, is a satellite-based technology that determines exact geographic locations. It’s what powers most of the location services on mobile phones and other handheld devices. It is also the best geolocation technology for accurate positioning. 

GPS connects to at least four satellites to help you figure out your position on the Earth. By analyzing signals from these satellites, it can triangulate your location with impressive accuracy, usually within a few meters. 

Most navigation apps such as ride-hailing, fitness tracking, and tracking systems like fleet management have GPS at their backend. 

However, just like any technology, GPS also has its limitations. While it’s highly accurate in open spaces, things get trickier in urban environments. 

Tall buildings can block satellite signals and make it harder to get a clear fix on your position. Similarly, indoor locations or areas with poor satellite reception can cause issues with accuracy. 

So, if you’re in a dense city or using GPS indoors, don’t be surprised if your location isn’t spot-on.

A geoPlugin screenshot from Depositphotos showing multiple IP addresses on a computer screen.

2. IP Geolocation

As evident by the name, IP geolocation geolocates devices using their IP addresses. 

When you go online, your internet service provider (ISP) assigns an IP address to your device. This IP is globally unique to you, meaning no other device on the entire internet has the same IP. Each geographic area has a separate range of IP addresses.

IP geolocation services maintain huge databases full of these IP addresses and their associated locations. When you visit a website that uses IP geolocation, it can query your IP address against this database. The service then returns an approximate user location based on that data.

Now, IP geolocation can give you a general idea of someone’s location, like the city, but it cannot be precise. That’s why websites use it for things like customizing content or adjusting language and currency settings. 

Another limitation is that if someone’s using a VPN, proxy, or mobile network, the location data could be less reliable.

Image showing a man using his laptop via WiFi.

3. WiFi

WiFi-based geolocation technology triangulates your device’s position using nearby WiFi networks. The process involves measuring distances or angles from at least three different points, in this case, WiFi access points.

In WiFi-based geolocation, devices don’t necessarily need to connect to any WiFi networks. Instead, they can just sniff (catch) the available WiFi signals around them. 

This method of geolocation is particularly useful in urban environments where GPS signals might struggle, like malls or crowded cities. Because WiFi signals can penetrate walls and other obstacles, they’re a great option for indoor navigation. 

Image showing a man checking his cellular network speed on his iPhone.

4. Cellular Networks

This method relies on either triangulation or trilateration, which calculates the distance between a device and several nearby cell towers. It’s especially useful when GPS isn’t available or when GPS needs a little backup to provide more accurate results.

One key application of this tech is in emergency services, like E911, to determine the location of callers in distress. 

However, these location estimates can be off by hundreds of meters, especially in urban areas with loads of overlapping signals.

Image showing Google Maps on an Android phone.

5. Bluetooth Low Energy (BLE)

Bluetooth Low Energy (BLE) is more of a short-range geolocation solution with unique use cases. BLE devices, like beacons, broadcast signals for nearby devices to pick. The strength of these signals helps determine how close the device is to the beacon.

Because Bluetooth signals are short-range, you’ll find BLE usage in indoor places like museums, shopping malls, and airports. Businesses also use BLE to send you personalized deals as you wander around their store. 

While this geolocation technology is extremely accurate, its range is limited, typically under 100 meters. Therefore, it’s only useful for close-range tracking. Plus, BLE requires dedicated infrastructure to work, unlike GPS or cellular networks that already have widespread coverage.

How Insurance Can Use Geolocation Technology?

Insurance is no exception in industries that use geolocation technology to improve their services. Insurers can use it to offer more personalized services and minimize fraudulent or exaggerated claims. Here are some potential geolocation use cases for insurers. 

Telematics and Usage-Based Insurance (UBI)

One popular method insurance companies calculate premiums is through telematics devices. These devices track your speed, braking habits, the routes you take, and more, either passively or in real time. 

This lets insurers create Usage-Based Insurance (UBI) plans, where premiums are based on how you actually drive, not just generic factors like your age or vehicle type. Because this method assesses risks more accurately, it is a win-win for safe drivers and insurers.

Image showing a mobile app sharing location among several individuals.

Geofencing for Theft Prevention

Insurance companies can also set virtual boundaries around places where cars can or cannot go. If the car leaves a predefined zone or enters a forbidden zone, the company will get a notification alert immediately. 

This helps in processing claims and precisely determining whether the place of theft comes under the agreed policy.

Claims Processing

One of the biggest pain points in insurance is claims processing. But with geolocation technology, this process gets a little hassle-free. When an accident or incident occurs, insurers can verify the user’s location almost instantly. 

Instead of back-and-forth investigations, geolocation data can quickly confirm the time and place of the event. This can translate to faster payouts and fewer headaches for both the policyholder and the insurer.

What Social Concerns Surround Geolocation Technologies?

While there are lots of benefits of geolocation, it also raises important social concerns. Let’s take a quick look at some of these concerns.

Lack of Transparency

Regulations like the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) require websites to be transparent about who has access to user location and other personal information. 

They also need to inform users about how they intend to use their data. However, malicious websites can still violate these regulations and secretly misuse user data for personal gain. They may also present users with false information about their use of user data.

Image showing a tablet saying “terms and conditions”.

Data Reuse Without Consent

When customers share their physical location for one purpose, they expect it to stay within that context. A person may be fine with their bank knowing their location to prevent fraud. However, if businesses pass their location data to advertisers without their consent, the trust can quickly erode. 

And this isn’t a hypothetical scenario; it actually happens. There have been cases where businesses have sold customer data to surveillance agencies, advertisers, and even cybercriminals. 

Geolocate IPs With GeoPlugin

Geolocation Technology, especially IP geolocation isn’t an inaccessible thing like you might think. There are plenty of services that offer IP geolocation, and some of them even offer it for free. And businesses don’t even require any infrastructure to use IP geolocation. 

If you’re in search of a good geolocation service, you’ll hardly find a better option than geoPlugin. This is because geoPlugin offers 120 free IP lookups every minute, and the data includes loads of details.

Simply integrating GeoPlugin’s API with your website can improve your service a lot. 

So sign up for GeoPlugin and enjoy unbeatable IP geolocation services! 

FAQ

What are the main uses of geolocation technology?

Geolocation technology is primarily used for navigation, location-based services, tracking, asset management, and personalized advertising. It’s also utilized in emergency response, fraud detection, and optimizing logistics.

What technique is used for geolocation?

Geolocation typically uses techniques like GPS, WiFi positioning, IP-based geolocation, cellular networks, and Bluetooth Low Energy (BLE) to determine a device’s location. All these methods have varying levels of accuracy and are thus suitable for different environments and scenarios.

What are the benefits of geolocation?

Geolocation provides improved navigation, personalized services, real-time tracking, enhanced security, and targeted marketing. It also supports efficient resource management and enables precise location-based solutions.

author avatar
Mehal Rashid
Mehal is a Computer Science graduate who specializes in writing SEO articles about Tech, AI, and cybersecurity. In his free time, you will find Mehal in a boxing ring or playing snooker.