Location targeting allows advertisers to focus on their campaigns on a particular city, country or region and understanding how it works can provide a valuable boost to conversions, according to one expert.

Josh Dreller of Search Engine Land said that in the case of Google’s pay per click marketing platform AdWords, a number of factors are used to determine geo-targeting.

These include domain – people on Google.fr are assumed to be in France – language settings, IP addresses and the use of geographic keywords in queries.

Advertisers who want to pinpoint a particular area can search for countries, regions and cities in their AdWords settings, choose from predetermined location bundles such as North America or the Middle East, or exclude specific places.

Alternatively, they can specify a radius or plot a custom shape on a map where their ads will appear.

"Location targeting isn’t hard to figure out, but it’s important for you to truly know how to use the various engine tools to define your geo-targeting and what options are available for you," Mr Dreller said.

Kastle Waserman of Yahoo! recently claimed that using geo-modified keywords in location targeting campaigns is a common mistake among paid search advertisers, as they cause a "mismatch" that mean ads do not display.

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