Local Google Advertising is usually called “Geo-Targeted Search Engine Marketing”. That’s a fancy sounding phrase for what is a fairly simple concept. Geo-Targeting really just means that Google knows where your computer is geographically (not exactly, but pretty close) and local businesses can buy advertisements on computers located in that area.
From a technology standpoint, the newer internet connections, like broadband and fiber, assign your computer has a unique IP Address that is registered with your provider and they assign a location identifier (like your city) to your computer. Whenever you load an internet page, that IP Address and your location information is passed to the website you’re loading. Google uses that location information to display ads that are set-up for your location.
The advantage for the local business owner is your advertising money is now being spent exactly where your customers live. It’s even more specific than buying an ad in the Yellow Pages. For example, if you were a small pizza restaurant in the suburbs of a major city, your customers probably live with in 10 miles of your location. But the Yellow pages usually covers a huge metropolitan area – including dozens of suburbs that would never drive to your pizza shop. However, you are buying advertising for the entire metropolitan area. Up to 90% of your advertising money has been wasted by advertising in areas that would never drive to your store. By contrast, with Geo-Targeting on Google, you can advertise in much smaller areas, which puts your advertising money to work where you need it – near your store.
