Geotargeting: What is it, and how does it work?

What is geotargeting?

Geotargeting is a form of advertising that shows ads based on your location. For example, people in colder parts of the United States may see social media ads for warm clothing, while people living in a trendy London neighborhood may see ads for hip coworking spaces. Geotargeting is used by companies across different sectors, from media and entertainment to restaurant chains and venues.

How does geotargeting work?

Geotargeting campaigns heavily rely on user location data. In other words, they need to know where the user is to show them targeted ads. Here’s how geotargeting works in simple terms.

1. 1.Collecting user location data. This data may include anything from your country to your ZIP code. Companies may get this information from the user’s IP address, Wi-Fi signals, Bluetooth network connections, GPS coordinates, or mobile device IDs.
2. 2.Combining it with other data. Your location data is often combined with other information, such as age, gender, or social media activity. For example, a clothing company may show ads to people in a particular San Francisco neighborhood who follow specific brands on Instagram.
3. 3.Showing the ads. Finally, once they’ve armed themselves with plenty of user data, companies create and show targeted advertising to users. By making these ads highly targeted, companies aim to make their advertising campaigns more effective.

Geofencing vs. geotargeting: What’s the difference?

Geofencing is a type of geotargeting. While both are targeted advertising techniques, geofencing defines a radius near a specific location and shows ads to whoever enters the defined area.

It uses the individual’s location (most likely tracked through location services or apps on their phone) to recognize when they’re in the defined area and trigger the ads. For example, a music venue may advertise its upcoming shows to people waiting in line before a show.

Geotargeting and user privacy: What are the concerns?

Geotargeting may be an effective tool for advertisers — but it certainly raises questions about user privacy. Here are the main concerns relating to geotargeting:

• Data collection. Geotargeting relies heavily on data collection. Collecting or tracking an individual’s location data can often feel intrusive, especially if we’re not aware that it’s happening. Geotargeting campaigns often use data collected through IP addresses, Wi-Fi networks, and GPS signals, and many users may not even realize this data collection is going on.
• Cybersecurity risks. Collecting and storing user information may make people vulnerable to various cyberattacks. For example, if a company storing user location information experiences a data breach, this sensitive information may be exposed and end up in the hands of hackers.
• Third-party access. While not an exclusively geotargeting issue, third-party data sharing is a concern for many privacy-minded individuals. To carry out geotargeting campaigns, companies may share location information with third-party advertisers, meaning that the data is distributed even further.

Geotargeting examples

Let’s look at some campaign examples to illustrate how companies use geotargeting.

• The Whopper Detour campaign. In 2018, the fast-food giant Burger King started targeting customers within 600 feet of McDonald’s locations and offering 1-cent Whoppers through the Burger King app. While the campaign offered an attractive deal to customers, that doesn’t negate the fact that precise user location was used without the users’ explicit consent (the campaign actually used GPS data from the McDonald’s app).
• Oreo “Wonderfilled” campaign. Oreo advertising teams used geotargeting to show ads for new cookie flavors to users near the stores that carried these products. Again, customer real-time location became the main factor in an advertising campaign, potentially without the users knowing their location is being used this way.

What if I don’t want to be targeted by geographic location ads?

It’s completely understandable if you don’t want to see location-based ads. The good news is that you can take several steps to prevent geotargeting ads from appearing on your devices.

1. 1.Opt out of location-based ads. Most companies should allow you to opt out of targeted advertising — you just need to change your marketing preferences.
2. 2.Disable location tracking. Change app permissions on your phone to stop sharing your location with apps unless they need it to fulfill their purpose.
3. 3.Use a VPN to hide your location. You may also connect to a VPN server to shield your virtual location and avoid ads for your actual location.
4. 4.Use a tracker blocker. Some VPNs (like NordVPN) come with a tracker blocker — a tool that may help prevent intrusive geotargeting ads.
5. 5.Try an ad blocker. NordVPN offers an ad blocker — a tool that blocks annoying, intrusive, and potentially unsafe ads. Using an ad blocker may make your online experience safer and smoother.