Ecommerce

When it comes to your media, what works in Milwaukee might not work in Miami. That is not just a creative challenge, it is a measurement problem. Brands that plan, target, and measure by geography can see which markets are actually moving the needle, and reallocate budget before they lose momentum.

Geotargeting lets you line up media investment with how people actually live, search, and shop in each city, state, or zip code. When you combine location-based tactics with incremental testing and media mix modeling (MMM), you can see where to push, where to pull back, and where the next best opportunity lives.

What is Geotargeting?

Geotargeting is the practice of creating, targeting, and serving ads based on a user’s geographic location, often layered with other audience signals like demographics, interests, and behaviors. That location can be inferred from signals like IP address, GPS coordinates, Wi-Fi positioning data, or the country, region, or zip code a user shares in a form or profile.

For example, a consumer electronics brand might increase its budget for a specific age range within a tight radius around a convention center during Comic-Con in New York City. At the same time, a landscaping company might pause lawn care ads and shift to snow removal offers as soon as the weather changes in a given metro. In both cases, the brand is using geographic location plus context to match local conditions and intent.

Geofencing vs. geotargeting

Geofencing builds a virtual “fence” around a location—like a football stadium, a concert venue, a museum, or even a single brick-and-mortar store—and reaches people who enter that defined area, usually in real time. It is about capturing anyone who crosses the boundary, with less focus on who they are beyond that moment.

Geotargeting, by contrast, focuses on reaching people in broader areas, such as a neighborhood, city, DMA, or country region, often with additional audience layers like age, income, or interests. Think of geofencing as targeting “anyone who walked into this train station today,” while geotargeting reaches “homeowners in Beacon Hill, Boston who have shown interest in home improvement.”

Why Should Marketers Use Geotargeting Techniques?

Geotargeting gives marketers another way to segment audiences, understand performance, and reduce wasted spend. Instead of making straightforward national media buys, you can see which locations are saturated, which are still under-invested, and which are quietly becoming your highest-value markets.

Segmenting audiences by geography

Geotargeting transforms broad media campaigns into highly localized strategies, providing marketers with actionable visibility and control over market-by-market performance. The following steps highlight how segmenting audiences geographically leads to more precise measurement, smarter allocation, and meaningful business outcomes.

• Target campaigns at the level of zip codes, DMAs, states, or regions to measure the incremental impact of channels that lack user-level precision, such as linear TV or some streaming platforms.
• Use geo experiments and geo-based MMM models to reveal how different markets respond to the same media, creative, or offer without needing individual user IDs.
• Spot saturation and decay trends early; shift budget to emerging markets when a region’s response starts to flatten to avoid overpaying for diminishing returns.
• Over time, build a clear view of which markets and channels consistently deliver the best incremental return on ad spend (ROAS), rather than just counting impressions.

This approach makes the narrative easier to scan and drives home each actionable point.

Better relevance and personalization

Location-based campaigns make it easier to tailor creative, offers, and landing pages to local context, which tends to improve engagement and brand affinity. Retailers and ticketing platforms, for example, often swap team colors, city names, or nearby venues into their content. Hence, the experience feels specific to each fan base.

If a business serves only a given state or country, or if regulations limit where it can sell, geotargeting helps ensure that only qualified audiences see performance-focused ads. This reduces clicks from people who cannot convert while still giving you room to experiment with new local concepts or micro-campaigns.

Better reach with minimal wasted spend

Sometimes, the most profitable customers live in places you haven’t invested in yet. When you add geographic location as a variable in your measurement framework, you can cast a wider net in a structured way: identify top-performing markets, look for adjacent zips or cities with similar profiles, and test controlled expansions.

That same approach works in reverse. Suppose certain locations have consistently high CPA and weak incremental sales. In that case, you can exclude or de-prioritize them, and reinvest those dollars into markets that are more responsive to your messaging and offers. Over time, this tightens the link between local media investment and local results.

How to Geotarget Audiences

Geotargeting works best when it is grounded in the realities of your business model: where you can legally and operationally serve customers, where demand exists today, and where your next growth markets are likely to be. Start by aligning those basics, then layer in channels, data, and measurement.

To get you started, we recommend asking yourself the following questions:

1. Which audiences are best to geotarget?

First, define the locations you can actually serve—by country, state, city, or radius from a business location—and where shipping, service coverage, or regulations might create hard boundaries. A brand that ships homemade cookie gift boxes within 100 miles of each retail store, for example, should build campaigns and exclusions around those specific radii rather than the entire country.

Geotargeting can also help with exclusion logic. Imagine a brewery that wants to retarget out-of-state visitors for online orders after a holiday weekend; it would need to remove states that do not allow alcohol delivery from its campaign targeting, even if those visitors were highly engaged, to avoid wasted impressions and compliance issues.

2. Which channels are best for geotargeting?

Most major ad platforms offer built-in geotargeting tools. Common options include:

• Search engines: Google Ads and Microsoft Ads provide location targeting by country, state, city, postal code, radius, and custom geographic areas. Brands can also target by physical location or places users show interest in.
• Social media platforms: Most social media platforms, including Meta and TikTok, allow you to target cities, zip codes, or regions, as well as use audience controls for behavioral and demographic segmentation. For the B2B marketers in the room, LinkedIn also enables precise location-based ad delivery down to city and zip code.
• Streaming TV and CTV platforms: Streaming services like Hulu, YouTube, and Netflix support geotargeting at the DMA or regional level for greater reach and local relevance. In some cases, streaming platforms can even target by zip code when bought programmatically.
• Out-of-home solutions: Billboards, place-based displays, and transit ads serve geotargeting by selecting locations based on business footprint, commuter routes, events, or high foot traffic.

These channels enable location-based strategies for everything from broad market scaling down to hyper-local engagement in specific neighborhoods or points of interest.

3. What data is needed for geotargeted campaigns?

Effective geotargeting depends on a mix of geographic identifiers and audience data. At minimum, you need to understand the country, state, region, city, DMA, or postal/zip codes you want to reach, along with any locations you need to exclude; that information often comes from your CRM, site analytics, and offline sales data.

From there, you can layer in audience attributes such as age, gender, income band, household type, or interest categories, along with indicators of whether someone likely lives in a place or is just visiting. Many brands also incorporate contextual data, such as weather, time of day, and nearby points of interest, to tailor offers and messaging to the moment.

Measurement platforms can help you build these audiences from your highest-value customers, linking their physical locations to LTV and purchase behavior, and then finding similar audiences in new markets. Platforms like Bliss Point by Tinuiti can connect your first-party data with geographic performance, showing how your top LTV customers are distributed across regions and which markets are over- or under-invested. From there, Geo MMM can surface lookalike markets where your media is likely to work harder, so you can expand with more confidence. A restaurant group, for example, could use a geo-aware model to identify its top 10% of guests and then focus expansion media on neighborhoods that most closely match those profiles.

4. How can marketers test and measure geotargeted campaigns?

To make geotargeting truly performance-minded, it needs to sit inside a broader measurement plan. Brands can use forecasting, what‑if scenarios, and geo-based experiments to simulate how different budget levels or channel mixes are likely to perform across regions before pushing those changes live.

One proven approach is Geo Lift. Tinuiti’s Incrementality Playbook shows marketers how to use Geo Lift and measure incremental impact with precision, particularly when geographic segmentation allows controlled tests at the market level.

As campaigns run, monitor key metrics in every region:

• CTR (Click-through rate): Reveals if a local audience engages with your ad content.
• CPA (Cost per acquisition): Shows which locations are the most and least efficient to acquire customers.
• ROAS (Return on ad spend): Quantifies how much revenue is generated for every dollar spent in a geographic segment.
• Store visits: Tracks users who saw a mobile or online ad and then physically visited a brick and mortar location.
• Incremental sales: Measures additional sales directly attributed to geo-targeted marketing.
• Brand lift: Gauges the impact of campaigns on brand equity metrics, like awareness or perception in distinct regions.

These insights allow marketers to identify locations with low CPA and high incremental ROAS and flag areas of high CPA or declining brand lift for creative or budget changes.

5. How should marketers analyze geotargeted campaigns?

Once campaigns are in the market, reporting should focus on translating local performance into clear decisions. Look for locations with low CPA and high incremental ROAS impact; those are your best candidates for budget increases. Flag areas with high CPA or flat lift for deeper creative or offer testing.

If CTR is low in a specific geographic location, test new creative, offers, or landing page copy tuned to that market, or consider whether the audience targeting is too broad. When CPA is low, and ROAS is strong, scaling budgets within those zips, DMAs, or country regions can accelerate growth. In contrast, low or negative ROAS should prompt you to pull back and reallocate to more efficient markets.

Use Case: Parts Town & Geotargeted Paid Search

Parts Town, a distributor of OEM foodservice equipment parts, faced a fragmented market during COVID-19 as different states and cities shut down or reopened on very different timelines. Tinuiti’s team needed a way to keep sales strong while staying aligned to local conditions and rapidly shifting search demand.

Using paid search and geotargeting, the team adjusted bids and budgets by market based on local restrictions, search trends, and store demand, rather than treating the U.S. as a single, uniform market. This allowed Parts Town to prioritize areas where restaurants and service providers were still operating or reopening, while avoiding overspend in regions that were effectively paused.

Instead of a one-size-fits-all national approach, Tinuiti and Parts Town:

• Segmented campaigns by state, city, and DMA to mirror how local regulations and reopening policies differed.
• Shifted budgets daily toward locations showing stronger search volume and conversion rates, and away from markets where demand fell off.
• Tuned keyword coverage and ad copy to reflect local realities such as, prioritizing emergency repair intent where commercial kitchens were still active.
• Used geo-level performance reporting to understand which regions were driving the most efficient revenue and where diminishing returns were setting in.

By aligning geo-based bidding with real-time performance data, Parts Town was able to maintain strong revenue and continue growing paid search results even as the broader environment stayed unpredictable. The case shows how geographic segmentation can function as both a targeting strategy and a measurement lens when market conditions change quickly.

Read the full Parts Town case study to see the complete strategy and results.

Conclusion

Geotargeting is most powerful when it is treated as both a targeting strategy and a measurement framework. By planning media at the level of zip codes, DMAs, and regions, and then reading results through an incrementality lens, brands can see which locations truly drive incremental revenue, store visits, and brand lift.