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For all we hear about the global reach of the Internet,people need to know what's happening where they live. Formost people, life is local. If the Internet is to be usefulfor everybody, it must be too. Thankfully the local online market has finally started totake off. As more local information becomes availableonline, people are starting to look at the Internet assomething useful instead of a passing fad. And where people go, advertisers are sure to follow. Theamount of money spent on local online advertising hassteadily increased in the last few years. According to TheKelsey Group (http://kelseygroup.com), geocommerce, orlocal advertising revenues, are expected to reach about $50billion by 2006. Here's another reason the local online market is heatingup: technology. The ability to target online users bygeography - Geotargeting -- allows websites to present adsonly to consumers who live in certain geographic location.Local advertisers can now be sure that only local eyeballswill see their ad. Localized advertising is very targeted, and can be used toquickly and cheaply test online campaigns. Local merchantscan use a combination of online and offline advertising todrive traffic to their store and website. Geotargeting has great promise, but it's not withoutproblems. The main issue is accuracy. There is a bigdifference in the accuracy of methods used to target basedon user location. COMMON GEOTARGETING METHODS - I.P. Address Targeting based on I.P. address (a unique string of numbersthat identifies a computer on the Internet) This methodworks by using the I.P. address to identify a user'sgeographical location. It can home in on a user's city -sometimes even their zip code - within the U.S. andinternationally. Many of the major Geotargeting vendorsuse this method, including www.quova.com, a major player inthe geolocation market. There are a couple of weaknesses in the I.P. method. Thebiggest problem: for various reasons, not all I.P.addresses can be mapped to a geographic location. A good example is the AOL user population. Because of theway AOL handles their web requests, all of their usersappear to be coming from Virginia. Of course that's nottrue. So when it comes to Geotargeting by I.P. address, all AOLusers have to be eliminated. That's a big chunk of theAmerican population. - Zip Code Since all Zip Codes can be easily matched to a location,Geotargeting by zip code works fine - as long as the personis telling the truth. People lie all the time when signingup for free services and filling out survey forms. Still, what we have now works most of the time, and as thetechnology improves, so will the results. GEOTARGETING SOLUTIONS Geotargeting is done in a number of ways, but they all fallinto one or more of the following four basic categories: 1. Localized content – This is advertising or informationthat applies to a local or regional area. Some providers oflocalized advertising include online versions newspaper,television, and radio; also includes city guides, yellowpages and directories. 2. Banner advertising – Most banner ads are sold throughone of the online ad networks, and all of them provide somesort of geographic targeting and demographic selection.Some ad networks include Doubleclick.com, ValueClick.com,and Commission Junction (www.cj.com). 3. Registration Data - Most sites that provide servicessuch as email or internet access require users to register.That process often includes zip code, which can be used totarget by city or even street. These types of sites canalso use cookies (small bits of data stored on the user’scomputer) to recognize the user each time they return bymatching it to their registration data. Examples includeaol.com, hotmail.com, yahoo.com, netzero.com, etc. 4. Geographic Data Providers – Providers of geographicspecific data, such as phone directories and map services,can easily serve up local ads. That’s because to get theinformation they need, people have to give either zip codeor area code, which is easily mapped to location. Examplesinclude mapquest.com, switchboard.com and weather.com. New sources for geotargeting are popping up all the time,as traditional postal list owners such as magazines andcatalog vendors realize they’re sitting on a goldmine ofcustomer information. As the technology gets better, youcan expect geotargeting to become even more widespread. The bottom line? For local business, geotargeting will helpto deliver on the oft-repeated promise of a level playingfield. Forget the global economy ....the future of theInternet is local.