Definition:

Geo-targeting refers to a technique for identifying a website visitant’s position to render position-based content or commercials.

Information:

Every visitant’s network pairs up with an IP address that shows its distinct spot. The initial three figures of an IP address matches with a country code, and the following figures refer to discrete locations within that domain. The topographical data derived is utilized for the aim of advertising and hence is termed geo-targeting.

Geo-targeting strives to enhance the cost-effectiveness of advertising arrangements. For instance, the commodity is a plane ticket from Honolulu to Vancouver; it will have a higher probability of being sold to an individual who resides within either of the two cities.

If a visitant resides within another city, then other proposals are likely to be offered.

The operation is not 100 percent reliable. Errors do occur when visitants use proxy servers or other IP-masking tools, amongst other techniques. Nonetheless, these situations do not transpire regularly for geo-targeting to be efficient. Geo-targeting is accessible to small advertisers through platforms like Google AdWords.

Helpful Articles to Understand Geo-Targeting:

Geo-Targeting: Old School and New School
ClickZ (February 12, 2010)

How to Geo-Target PPC Campaigns for Local
SEO Moz (September 22, 2009)