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Local, Geo-Targeted Ads on the Rise

Posted on 12.02.2009

According to digital media consulting firm BIA/Kelsey, geo-targeted ads will more than double in the coming years - from spending of $897 million in 2008 to more than $1.9 billion in 2013. According to the firm, geo-targeted ads currently represent about 10.2 percent of the market for display ad units, which will grow to 15 percent in 2013.

"Resellers like AT&T and the Yahoo Newspaper Consortium...are going to start to sell these geotargeted display products because the search CPCs are really high," said Matt Booth, SVP and program director at BIA/Kelsey. "If you're a reseller, you're buying a search click for $2 and you can get 1,000 impressions for 45 cents, the economics are in favor of shifting to this market."

Booth also says that small and mid-size businesses will be the ones taking advantage of geo-targeted ads, because these businesses tend to serve smaller, local markets. But there is certainly room for geo-targeting areas for any size company, brick-and-mortar or pure play online. Naturally, particular products will sell better in some regions than others. Of course, to take advantage of these opportunities you must look into your analytics.

We ask: Is your business involved in geo-targeted ads? If so, how has it impacted sales or brand awareness in those regions? Please comment below!

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