Google announced yesterday that it has added a new feature to its contextual online advertising platform Adwords, for advertisers targeting Egypt and Saudi Arabia.

The new feature allows advertisers in both countries to target ads only to specific region, city or geographical location. Google is able to deliver regional targeting because it knows the IPs that are coming from each city as such it can target ads based on that.

Geo-targeted ads are an efficient way to reach more qualified prospects. Narrowing it to a region or city level means, Google is targeting small and mid size businesses such as restaurants and caffe shops who would more likely advertises locally at the city level than nationally.

City level advertising is no doubt effective for small businesses, but Google can draw more small business crowds to its Adwords, if it can target ads targeted  to city neighborhoods.

The vast majority of Google revenues comes from adwords, whose main customers at the global level are small and mid sized businesses, as such Goolge managed to keep making profits despite the global recession while competing companies such as Yahoo! has been struggling to stay relevant because Yahoo! for instance relies on advertising from big brands, an advertising segment that cuts ads when faced with financial problems.

Stumble it!

If you like this article, please subscribe to our RSS Feed
Comments RSS Feed. Pings/Trackbacks.