GEO targeting – what is it?
There are a lot of things to look for when buying banner ads. For example, if you are a local business (and have a limited delivery area) then you do not want to advertise in markets you don’t service (you want to GEO target your ads).
Here’s a real-world example: Let’s say you are a Chicago cupcake store and you only do local deliveries. What’s the point of advertising in New York, or even Milwaukee? Your first requirement is that the ads be displayed only in the Chicago market (that’s know as GEO targeting). That at least assures you that your ads will be seen by people in your area.
Same with Paid Search. You can create a campaign that is GEO targeted to Chicago (or most other metro areas) and your ads will only be shown when somebody in Chicago searches for cupcakes.
Finally, even if you ship all over country it’s still a strategy to GEO target your campaigns as that allows you to run custom ads that are targeted for the market in which you are advertising. You could have an ad that says “Best cupcakes in Chicago” or “We deliver to Chicago” but that might not make so much sense if your ad is being displayed in New York.