With Internet use spreading across the globe, one advertising message no longer fits all. Believe it or not, Asians, Europeans and Latin Americans account for more than 60 percent of all Web traffic, and the percentage is climbing. At the same ti

With Internet use spreading across the globe, one advertising message no longer fits all. Believe it or not, Asians, Europeans and Latin Americans account for more than 60 percent of all Web traffic, and the percentage is climbing. At the same time, Internet shoppers everywhere are becoming increasingly hostile to generic pop-ups and banners. So, how can on-line advertisers get results in such a complex and demanding marketplace? A big part of the answer is geo-targeting.

Geo-targeting means gearing ad content to a specific geographic market. Advertisers can identify on-line shoppers by IP address, postal code or area code; when the shopper visits the advertiser's site, he will see an ad that literally hits him where he lives. Several geo-targeting approaches are available:

Advertising on Web sites with localized content, such as on-line newspapers, yellow pages and entertainment guides; Advertising on sites such as Yahoo!®, where user registration includes geographic markers; Using third-party advertising services such as DoubleClick; and Advertising on sites with geographically specific content, such as MapQuest® and The Weather Channel.

Creating ads in local languages, while important, is only one aspect of geo-targeting. International companies geo-target by adjusting prices to compensate for currency exchange rates. They also display order and response forms in local currencies to make them better understood and more effective. Subtle changes in ad design can make a big difference as well; for example, when targeting Canadians, far higher response and conversion rates occur when a small red maple leaf appears in the ad.

Even within the U.S. market, geo-targeting grows in importance. Studies indicate that most shoppers�even on-line shoppers�prefer to purchase within 10 miles of home. Thus, geographically sensitive businesses, such as real-estate developers, franchisers and car dealerships, can geo-target and reach an extremely receptive segment of potential customers.

Although geo-targeted ads are expensive compared to the one-size-fits-all variety, their increased effectiveness more than offsets the cost. With $5 billion expected to be spent on local on-line advertising by 2010, technology is gearing up. The newest version of IP addresses, Ipv6, will assign a unique identifier to every computer, making geo-targeting more accurate. Geo-targeting service providers are cropping up all over, and Internet powerhouses like Google™ AdWords™ and Yahoo!® Search Marketing already offer easy-to-use geo-targeting ads, tracking and analytics.

Companies should consider this new advertising strategy before the competition catches on and gets to the customers' door first.

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