"Some of the best practices of geotargeting can be found in the travel industry," says Tim Vanderhook, CEO of Specific Media, an Irvine, California-based ad network. "Airline and car rental companies have utilized geotargeting to push tailored offerings and drive traffic to regional locations to benefit their business goals."

Like advertising in a local phone book, the goal of geotargeting ads is to make sure that your ads are being shown to the consumers most likely to convert.

For small businesses, geotargeting helps them to compete with national brands, level the competitive playing field and reach relevant consumers who are in-market for their product or service.

Niche marketers use geotargeting in a similar fashion to zone in on consumers who meet their desired demographic characteristics in select geographic locations.

National brands use geotargeting to direct ads, special offers and consumer traffic to specific areas of the country. Methods include delivering coupons for products and offers most acted on in particular regions or tailoring messages to appeal to consumer needs in that particular region. A good example of this is Undertone Networks' geotargeted campaign for the FX TV series Nip/Tuck, which was targeted to metros that showed the highest viewer numbers.

“National brands can benefit greatly from geotargeting", says Geoff Gieron, director of advertiser management & services of MyGeek, an Arizona based ad network. “For example, a sporting goods retailer may run ads in the month of February for ski equipment in selected mountain regions, while also running ads for scuba gear in selected Southern Pacific regions during the same month.”