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The options for this include picking specific cities, metropolitan areas, or even a distance radius from a specific point. For example, maybe
realtor only wants to generate leads from within 30 miles of their home.
Does this work?
Yes, it works very well. There are very few types of advertising online or offline where you have such detailed control over who you are advertising to. Basically it’s pretty hard to beat advertising to people who are searching for what you sell and happen to live close to your business. And, since this is pay per click advertising, you are only charged when searchers click through to your web site.
Local Advertising Tips
Promote Your Location - You’ll definitely see better conversion rates for your local advertising if you include your physical address on your web site. We recommend including this in
footer of every page of your site to reinforce that you’re local to
prospects.
Track Performance - When you use local advertising you will still have to compete against businesses willing to advertise nationally on
same search phrases. This means search terms can get expensive but your conversion rates should support this. However, as with any form of advertising, it’s important to track what’s working.

Ed Kohler is the president and founder of Haystack In A Needle - a full service web marketing and search engine positioning firm based in Minneapolis, MN.