Local advertising is set to explode online. JupiterResearch reports that local online advertising will reach $5.3 billion in 2010. Ad networks and advertisers alike will continue to push for more accuracy with granularity because the more specific the advertisers can get, the better the conversion rates will be.

“The enhancements in geotargeting are coming not in better targeting technologies but in applications like Judy's Book, Local.com, Google Maps and Topix.net. The serge in local advertising will be fueled by the pay-per-call pricing model,” predicts Bill Flitter, Founder and VP Marketing for Pheedo, Inc.

The next generation of IP addresses (known as IP version 6) will give each computer a unique IP address, allowing geotargeting accuracy to go up to 99 percent. Advancements will come from all types of actionable data being combined to tailor relevant messages.

“Marketers and ad networks who combine geotargeting with behavioral targeting and demographic targeting can make your brand messages even more relevant to the market being targeted,” says Specific Media CEO Tim Vanderhook.