Geomarketing on the internet consists of promoting a website within a specific geographical region. For many reasons, a website owner may not want to target a broad range of users. The perfect example is someone whose business or services are local. A plumber would not be interested in customers from outside his state, province or country, thus geomarketing would be his ideal solution.
Another reason for geomarketing is to attract local sponsors and advertisers. Business models such as those used by online newspapers and magazines rely on the advertising revenues derived from various businesses. By offering specialized, local marketing, more advertisers are willing to make the online venue a component of their advertising budgets.
It makes no sense for them to waste dollars on national advertising so, if the newspaper wants to compete with local radio for example, they need to provide the right environment for the advertiser. One of the reasons, Google has become so successful is the fact that their search results use a geography-based model. When someone searches for a topic, their advertising results will be different than someone in another city, state or country. Results are provided based on the IP address of the user.
Geomarketing also consists of understanding different cultures or subtle differences between areas within the same culture. By knowing that a particular demographic buys a certain way or is interested in a certain product, then those individuals can be targeted more effectively. Fads are good examples. They might only be relevant in a few cities so advertising to everyone would be a waste of resources. In fact, geomarketing on the internet has advanced to the point where a company can target past customers.
Assume, for instance, a customer has purchased a few books from a website. When he/she comes back to the site the next time, because the company has his address and what he bought last time, he can be targeted with the same genre of books and items that are pertinent to his geographical location. Sports team merchandise would fit perfectly into this category, as many people support their home teams. Or snowblowers… What use would there be in showing snow removal products to people living in Florida?
It is actually quite common for websites to have geographically-based links in their navigation. They may be as broad as countries and then drill down to regions and even cities. Larger companies often have localized links for a better user experience. Insurance companies must do this in order to be profitable and sell the correct insurance policy. Each state has its own laws and peculiarities, hence, policies will vary. In order to customize the offer, each state must be segregated within the website in order to speak to its relevant users.
Internet-driven companies seek information of all kinds and those that collect and distribute detailed demographics can be paid quite handsomely for their efforts assuming the created database is accurate. Undoubtedly, to be able to locate potential customers and ultimately sell them a service or product is the key to geomarketing on the internet.