Geotargeting tailors ads to a user’s specific location, making them more relevant. It can be counterproductive for products with broad appeal, but even national products can take advantage of it. IP addresses are used to determine location. Relevant ads are important for click-through revenue.
Geotargeting is a specific type of Internet marketing effort that tailors ads for a user’s specific website so that ads are more likely to be relevant. While some ads are for national products, other types of ads may be more easily accepted by local audiences. Geotargeting is used in all types of Internet marketing efforts, from politically-based ads to consumer products and travel-related efforts.
One of the biggest criticisms of internet marketing in the early days of commercial web ventures was that it was not practical to target advertisements that were local in nature very easily. Unlike a newspaper or magazine, which might print ads for certain cities or deliver inserts only to certain places, the Internet was broader. While this may have been an advantage in many cases, advertisers wanting to reach a local audience often find that their money is spent not only on one local audience, but on many others as well. Geographic marketing helps address some of these limitations.
For geotargeting to work, the website the user is on must have a server that is able to understand the user’s IP address and where they are coming from. IP addresses are generally very specific to geographic regions and often identify state, region, or city. The server can determine which ads are placed on the page based on that geographic location.
Advertisers may pay more for geotargeting services simply because it means their ads are relevant to more people. If payment for the ad is on a click-through basis, it is to the advantage of the website and the advertiser to ensure that the advertising content is as relevant as possible. Otherwise, revenue will drop as users will not find the advertisements interesting or applicable to them.
In some cases, geographic targeting efforts can be counterproductive if a product has wide appeal in multiple regions. If the product being advertised has broad appeal, the use of geomarketing may be limited. In these cases, the main objective is to reach the widest possible audience, which is where the Internet can excel.
In some cases, even national products can take advantage of geographic marketing situations. For example, when promoting a heavyweight winter coat, the message to those who live in colder climates might focus on the coat’s ability to stay warm during the winter, with an emphasis on insulation. In southern climates, the message can be how good the coat can be for winter ski trips, with a focus on being waterproof and breathable.
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