Geographic Targeting

BusinessWeek has an interesting story about local search marketing, and a small company called Skyhook Wireless that's hoping to change the way local businesses advertise on the internet. The major ad networks already provide some tools that allow advertisers to target specific geographic areas, but this new technology promises even more granular targeting, so ads could be displayed only to users within a few blocks of a local business.

It's yet to be seen if Skyhook's technology will be picked up by any of the bigger online ad networks, but they're reportedly in talks with both Google and Yahoo. If we do see this made available to advertisers, it will give smaller businesses even more power to direct their message to the exact customers who are most likely to buy. A Chinese food restaurant could advertise only to customers within their precise delivery area. A small, local bookstore could target their ads to users within a few blocks, hoping to attract walk-in customers from that coffee shop down the street that offers free Wi-Fi access.

More precise ad targeting can only benefit small businesses with limited marketing budgets. The downside, perhaps, is that more targeting options will probably make it even more difficult for do-it-yourself marketers to manage their campaigns efficiently. More options too often leads to more confusion. However, with the increased conversion rates expected from targeting only the users that are most likely to buy, advertisers will likely find that it's worth their time to learn how to properly zero in on their market. And those who don't have the time to learn may find that hiring an outside consultant to manage their online campaigns can pay for itself.

This sort of powerful targeting isn't available yet, but it's worth keeping an eye on, especially for neighborhood businesses that cater to very specific areas.

A report on internet traffic released yesterday by comScore reveals that some of the top internet properties in the United States receive a majority of their visitors from overseas. During the month of September 2006, 14 of the top 25 sites had more visitors from abroad, including all of the top 5 (Yahoo, Time Warner, Microsoft, Google, and eBay).

US vs. Foreign Visitors - Top 5 Web Properties

For web site owners, this news is more than just an interesting statistic. It's a reminder of the importance of geographic targeting of our online advertising. If you're not seeking these international visitors, a large portion of your advertising spend on major web sites may be wasted on visitors that you're not looking for. But you are paying for them.

Geographic Targeting

Google AdWords, Yahoo Search Marketing, and Microsoft AdCenter all offer various options for targeting your online marketing to specific cities or regions.  Targeting is well worth the extra effort required to set it up, since every time your ad is clicked by someone outside your target area, you're throwing money away. If you're running pay-per-click (PPC) campaigns, take special care to understand the tools that let you limit your campaign to the areas you really want to reach.

Advertise Locally

An alternative to geographic targeting on the major PPC networks is advertising on local web sites that specifically serve the market you want to reach This option can be especially appealing to small local businesses. When you run ads on local web sites, your audience is targeted for you, so there's no additional work required on your part. As an added benefit, spending a portion of your advertising budget with local publishers may build some goodwill within your local business community, since your ad dollars probably mean more to a small local site than they do to an internet juggernaut like Google.

Keep Your Ads on Target

To maximize the impact of your marketing dollars, some sort of geographic targeting is essential. Advertising networks such as AdWords have made it easier than ever for a small business to start advertising online, but unless you're willing to learn how to reach only audience you're seeking, you may be wasting a significant chunk of your marketing budget.