Geotargeting: Where To Focus Ad Placement

A bakery in Denver does not need to advertise its pies in Dallas. Nor does a spa in Miami have much business delivering ads to people in Montana. On the other hand, an online retailer based in Pittsburgh may well want to deliver ads to users in Portland if it sells, say, umbrellas and raincoats.

All of these are examples of geotargeting, which in marketing is “the strategy of tailoring your online marketing — whether it’s ads, content, or offers — based on a user’s physical location,” per Rodrigo Cesar, founder and CEO of SSInvent. “Geotargeting allows you to speak to people in specific regions with messaging that feels more relevant and timely.”

When you deliver ads to people based on their location, whether by their town or present location, you can factor in everything from proximity to a retailer; local amenities like museums, parks, or proximity to the beach or the mountains; seasonal conditions like snow or sunshine; or even timely factors like the day’s forecast, special events, and so forth.

Geotargeting ads helps marketers save money by not serving ads to people to whom they’d be irrelevant, and it allows for maximally relevant ads to be delivered to people based on their location.

What Is Geotargeting?

“Geotargeting is a digital marketing strategy that delivers content or ads based on a user’s geographic location, down to the city, ZIP code, or even device-level GPS coordinates,” says Sasha Berson, co-founder and chief growth officer with Grow Law Firm. “It’s most commonly used in paid media, local SEO, and mobile marketing to tailor messaging for relevance. For example, a local law firm could serve ads only to users within a 15-mile radius of their office.”

In other words, geotargeting involves delivering tailored content, advertisements, or offers to users based on their geographic location, which is collected using data like IP addresses, GPS coordinates, or Wi-Fi networks, all of which can pinpoint a user’s location.

In some cases, marketers may cast a wider net, such as serving ads to an entire metropolitan area, or even to a larger swath of a state or region — this is still considered geotargeting. So, too, is it geotargeting when specific areas are not served ads. There’s no need to promote sunblock to a city experiencing a snowstorm, e.g., nor is there much good reason to advertise parkas to a region suffering through a heat wave.

Why Is Geotargeting Important?

Because geotargeting is based on a user’s location, “it’s a great way to put your marketing efforts in the right context — because where someone is often hints at what they might need at that moment,” says Patrycja Gorecka-Butora, head of marketing at WhitePress.

Geotargeting helps to ensure that your advertisements are being delivered to a relevant audience, and it can save ad spend by not delivering ads to people for whom they would not be actionable or relevant. Done right, geotargeting can provide a unique experience.

“Geotargeting is a personalized technology that websites or applications use based on your location to show you content that’s more local and relevant to your location,” says Ross Kernez, CEO of SEOMeetup. “For example, if you’re in Canada, a store might show you ads for their location, or offer you products that are available where you are. Or, if you’re in Poland, a website will show up in Polish.”

Ensures Relevant Ad Delivery

Geotargeted ads are delivered to customers who have ready access to the products or services being shared, whether at local physical shops, offices, or restaurants, or through online retail.

Maximizes Return On Ad Spend (ROAS)

Geotargeting ensures a better return on ad spend (ROAS) by not serving marketing materials to people who could not take reasonable action, or to whom it does not make sense to deliver the ads during a given time period.

Allows Real-Time Flexibility

Geotargeting advertisements allows marketers to deliver ads when they’re most relevant and appealing, based on factors like weather, an event such as a sports competition or political rally, and other time-sensitive considerations.

Types of Geotargeting

“Overall, geotargeting works best for businesses that are locally restricted: Think coffee shops, dental clinics, carpenters,” says Domante Gerdauske, digital advertising team lead at Omnisend. “The main advantage here is efficiency: You save money by showing ads only where they’re relevant, like running a pizza place ad in the city where it’s located, as people are more likely to visit that way. You can always make it more personal by layering context — for example: ‘Rainy in Manhattan? Enjoy 20% off spa treatments with code TodayPours.’”

You can also choose to target potential customers in various locations:

Country

For online retailers who ship to an entire nation, or for chains with a national reach, an advertising campaign that targets people spread out through an entire country can be considered geotargeted.

Region

Regional geotargeting can take many forms, such as delivering ads to an entire state, to an area of several coastal states, or to the New York tri-state region, and so forth.

City/Metro Area

Often, advertisers will focus on a distinct city when delivering ads. This is especially effective when promoting a one-off business or a small chain with locations all located within one metropolitan area.

Radius

In some cases, it makes sense to target a specific area based on distance from the business being marketed. Advertisers may choose to deliver ads to people within five miles of the business, to within 10, or to within whatever range they think makes sense.

Benefits of Geotargeting

“From an SEO and digital marketing perspective, geotargeting can dramatically improve engagement and ROI,” says Cesar. “Whether you’re targeting by city, region, or zip code, it’s about making sure the right people see the right message at the right time. It’s especially useful for businesses that rely on foot traffic or have different service areas, helping ensure your budget goes toward users who are most likely to convert.”

Geotargeting saves you money, ensures maximum relevance to the users seeing your ads, and protects brand reputation by not delivering ads to the wrong audience. It’s essential for advertising that promotes businesses with physical locations, and it’s highly recommended to help tailor the ad campaigns of online retailers, as well.

What Are the Ethical Considerations of Geotargeting?

Privacy

Businesses must be transparent about what location data they collect and how it’s used. This includes explaining the purpose of data collection and ensuring users can opt out of tracking.

Discrimination

While it may be accidental, geotargeting can lead to discrimination by excluding certain groups of people or improperly targeting others based on their location. So, geotargeting must be used thoughtfully.

Mission Creep

Once a marketer has acquired information about a potential customer, such as their location, it can be tempting to use that data for other purposes, or to sell or distribute the information to other entities. This must be avoided.

Geotargeting Techniques and Strategies

Establish Clear Objectives

Ask yourself what you hope to achieve with your geotargeted campaigns. Do you want to increase local sales, generate leads, drive traffic to your stores, or increase brand awareness? Knowing the why must come before strategizing about the how.

Know Your Customers

Beyond just figuring out where your target audience is physically located, research your ideal customer and learn about their demographics, interests, and behaviors related to your brand’s products or services.

Choose Your Area

Arguably the most important and most challenging part of a geotargeting marketing campaign is deciding how wide or small of a net you want to cast. You can think in terms of logistics, such as how far someone is likely willing to drive to try a cup of coffee or a slice of pizza at an establishment you’re promoting.

Create Your Copy and Content

As you develop your actual ads, make sure to research relevant keywords, optimize the copy, and use graphics and images that align with the brand and the intent of the campaign.

Best Practices for Geotargeting

“At its core, geotargeting is a marketing promotion strategy to amplify messages towards a set geographical location,” says Brandi Sims, founder and CEO of Brandinc PR. “It can range from targeting exact zip codes to regions or even specific countries.”

Here are some additional tips to make the most of geotargeting for your business:

Establish the Range with Care

Granular location targeting, including radius and zip code targeting, can be highly effective, so don’t be afraid to narrow your focus and exclude less relevant areas.

Create Custom Copy

If you’re trying to attract an audience in a specific location, incorporate language relevant to that area. Use city names, reference well-known streets and landmarks, and generally make it clear your ad is being delivered to its audience for good reason, not randomly.

Track the Results

As with all marketing initiatives, you need to pay close attention to the outcomes of a geographically-based marketing campaign. Figure out what seems to be working and go with it, or try new ad strategies when campaigns fall short of your goals.

How Do You Measure the ROI of Geotargeted Campaigns?

To measure the ROI of geotargeted campaigns, you need to calculate the revenue generated by the campaign and subtract the total cost of running it. This can be done by tracking key metrics like clicks, conversions, and sales directly attributable to the campaign, and then comparing them to the marketing spend.

You can also use tools like Google Analytics to gain insights into user behavior and optimize your campaigns. Note that in some cases, you’ll need to work closely with your clients, as it can be hard to tell when ads worked if they are driving people to physical locations instead of online sales. Suggest that business operators ask customers how they heard about a new offer, product, restaurant, and so forth.

Platforms and Tools for Geotargeting

Google Ads

Google Ads offers robust location targeting for search and display ads, allowing marketers to reach users in specific areas, cities, or the radius around a specific location or series of locations.

Foursquare

Foursquare is a prominent platform and tool for geotargeting, offering both a consumer-facing app and a business-oriented platform. It uses location data from check-ins and other signals to provide advanced geotargeting capabilities.

Bing Ads

Bing Ads, which was formerly known as Microsoft Advertising, is a PPC (pay-per-click) advertising platform with geotargeting capabilities.

Facebook Ads

This powerful Meta platform enables targeting based on location (country, city, zip code, and so on) and allows for the creation of location-specific ad sets.

Snapchat

Snapchat offers several geotargeting features through its platform, including the ability to create custom geofilters and use Snap Map for location-based ads.

Key Takeaways

“Geotargeting is the practice of customizing online content or advertising based on the user’s real-time or recent geographic location,” says Ivan Vislavskiy, co-founder and CEO of Comrade Digital Marketing Agency. “It’s foundational in local campaigns, especially when paired with mobile data.”

Geotargeting helps advertisers deliver ads that are highly relevant to their audience, such as when a local restaurant is displayed to someone within a short drive of the establishment. The practice also helps maximize return on investment and minimize wasted ad dollars by not serving ads that are made irrelevant based on location, season, weather, events, and other factors. It can be just as important to know who not to bother advertising to, as it is to know who you should reach out to.

There are several ethical concerns that arise with geotargeting, such as privacy issues, so marketers must always be sure to follow privacy laws, be transparent, and use best practices.

Frequently Asked Questions (FAQs)

How accurate is IP address geotargeting?

IP address geotargeting is generally accurate at the country level, with accuracy rates often exceeding 95%. However, accuracy decreases significantly when pinpointing location at the city level, with accuracy typically ranging from 50 to 80%. Factors like the use of VPNs, proxies, and dynamic IP addresses can further impact accuracy.

What is the difference between geotargeting and geofencing?

While geotargeting and geofencing are both location-based marketing techniques, they differ in their scope and target audience. Geotargeting involves delivering ads or content to people based on their general geographic location, while geofencing uses virtual boundaries around specific locations to trigger actions (like notifications or ads) when users enter or exit those areas.

What are the best practices for mobile geotargeting?

Best practices for mobile geotargeting include understanding your audience, choosing specific locations, using appropriate geotargeting tools, and tailoring your message to the local context. It’s also crucial to test different segments, monitor performance, and adjust your strategy accordingly.

How do you use geotargeting in social media advertising?

Geotargeting in social media advertising allows businesses to reach users based on their physical location, enabling more personalized and relevant messaging. By using location data, advertisers can tailor ads and content to specific regions, cities, or even neighborhoods, increasing the likelihood of attracting nearby customers and improving campaign ROI.

What are some common mistakes to avoid in geotargeting?

Common geotargeting mistakes include overgeneralizing, ignoring mobile optimization, and not using proper analytics. Also, neglecting ad extensions, using inconsistent brand messaging, and failing to create separate campaigns for each location can lead to inefficient campaigns. Then there are the privacy and transparency considerations. Not thinking about those would be a grave mistake, indeed.

How do you combine geotargeting with demographic targeting?

To combine geotargeting with demographic targeting, you define a geographic location (such as a zip code, city, or radius) and then specify demographic criteria within that location (age, gender, or income, to name a few examples) to reach the most relevant audience. This allows you to focus your advertising on people who are not only physically in the target area, but also share specific demographic characteristics.