Geotargeting
Geotargeting is the targeting of online ads based on the user's geographic location. This allows an advertiser who only wants to reach potential customers in his own region to use his budget as effectively as possible. For example, geotargeting can be targeted to one or more countries, provinces, cities or zip codes.
Using geotargeting in campaigns allows publishers to increase their revenue, as the fee per view or per click increases as the visitor becomes more valuable to the advertiser.
In addition to scheduling banners and ad space, geotargeting can also be used to tailor content to where a user is located. For example, visitors to a large multinational company's website can be linked directly to the local website in their home country. Offering local information to a user can also be seen as a location-based service.
How is location determined for geotargeting?
A user's location can be determined in several ways.
Geotargeting based on IP address
One way to determine a user's position is by their IP address. Internet service providers must provide a physical address when taking IP addresses from the issuing authorities. This can be the actual address of an Internet user or the address of a branch or network location near that user.
The reliability of determining position based on such records depends on how accurately the user's Internet service provider allows these data to be recorded. The accuracy varies between 50-99%.
Since a visitor's IP address is part of the technical information exchanged when visiting a website, this method of geotargeting does not require the visitor to accept cookies.
Geotargeting based on visitor behavior
The location of a visitor on some Web sites can also be inferred (in part) from the user's behavior. If someone performs many searches in Google in combination with the city name "Amsterdam," then it is likely for Google that this user is located in Amsterdam. Or at least has a particular interest in this city.
Determining a visitor's location based on visitor behavior is also a form of behavioral targeting.
Geotargeting via HTML5
Since the introduction of HTML5, it has been possible for browsers and websites to make use of the so-called Geolocation API. For sharing the location to a website, the user is asked for permission by the browser. This permission is handled at the domain level.
Mobile devices can use available sources such as GPS and WiFi antennas to determine the location to be transmitted. If the device does not have these, the browser can also transmit an internally stored location based on user input or other sources.
Input-based geotargeting
When someone needs to enter their address information when filling out an information form or placing an online order, this information can be stored in a database. By storing a reference to this data in a cookie, this data can be the starting point for location determination on the next visit.
Privacy guidelines dictate that it must be possible for a user to understand for what and how the data they provide are processed.
Geotargeting based on preference
The easiest way to find out the location of a visitor is to simply ask for it. Here again the example of the multinational with multiple national websites: by asking the visitor once in which country he is located, the next time the visitor can be automatically sent to the correct website based on a set cookie.
This method of targeting is quite reliable. However, it is only broadly applicable. To get the visitor to provide his location, it will have to be clear to him why this is being asked. For example, to redirect to a national website, choosing a city is irrelevant. Creating unnecessary thresholds is inadvisable.
Location Services
For recognizing the geolocation of visitors or users, the help of outside parties may also be procured. Some large Internet companies and specialized parties that collect such information in their databases in the above manner share it with third parties for a fee.
