Geotargeting: How it improves CTR

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Geotargeting of digital media is a method to target ads to visitors from different geographical locations. It's a widely used targeting method used by Adwords and Facebook to restrict ads to be seen only by users located in specific countries or regions. Most third-party ad servers let you geotarget your audience by:
  • Continent
  • Country
  • Region
  • City

How is the visitor's location determined?

The user's physical location is commonly determined by using a large database containing IP to Location data. These databases are updated routinely, containing detailed information about each subnet of IP information like the country, region, city, timezone, coordinates, etc. AdGlare is using MaxMind's GeoIP2 City Database - one of the leaders in geolocation technology.
IP to Location Geotargeting
Snippet of an IP to Location database.

Increase conversions and engagement

Why would you care enabling geotargeting? It doesn't make sense to show an advertisement for a $3000 product in one of the poorest countries in the world. By geotargeting you can fine-tune delivery to those locations that will likely convert: a method also known as geofencing. You may also want to enable language targeting for national campaigns in case your ad is written in a language that is not understood in all countries.

Set up Geotargeting in AdGlare

Open a campaign and click the Targeting Rules tab. Start typing the location you're looking for and add it to the list.
Don't know which countries to target? That's a common question ad operations is dealing with. One widely used geotargeting strategy is to let your campaign running for a moment without geotargeting enabled. Then generate a report by country and sort the list by clicks, CTR or conversions (based on your metric of interest). Now target only the best performing 10-20 countries. Your campaign will loose on impressions, but will improve its quality and increases engagement.

What is hyperlocal targeting?

In digital advertising, the exact GPS position of a user may be known when the person visits a web page on a mobile phone. The browser asks if the user wants to share its location with the website, which can then send the user's GPS coordinates to the ad server. Geotargeting can now be performed with incredibly high precision, allowing to target visitors who are at 200 meters away from a certain store. Think about showing an ad from McDonald's when the user is half a mile away from a train station.
Hyperlocal Geotargeting, wants to know your location.
Web page asking to share GPS coordinates.

GDPR Considerations

Europe's General Data Protection Regulation law (Wiki) prohibits processing or storing personally identifiable information without user consent. It's therefore imperative that the user cannot be identified when determining its location. One way of doing so is to make sure that the resolution is low enough, like targeting at city level. Cities usually contain >1 person, thus being unable to pinpoint the location to a single person. If you're using hyperlocal targeting, you may want to follow Google's policy to round latitudes/longitudes to 2 decimals (~ 1 km).

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