What is the method of targeting using geographical location based on IP address?

Prepare for the IAB Digital Advertising Certification Test with engaging flashcards and multiple-choice questions. Each question includes hints and explanations to ensure you're exam-ready!

Geo-targeting is the method of targeting users based on their geographical location, which is often derived from their IP address. This approach allows advertisers to deliver relevant content, ads, or promotions to individuals in specific geographic areas, making their marketing efforts more efficient and effective. For instance, a local restaurant can use geo-targeting to show advertisements to potential customers within a certain radius of its location, ensuring that the ads reach those most likely to visit.

Behavioral targeting focuses on users' online behavior and interests, rather than their geographic location. Demographic targeting involves segmenting audiences based on characteristics such as age, gender, or income level, which do not directly consider geographical factors. Look-alike targeting seeks to find and reach new audiences that resemble an advertiser's existing customer base, also not directly related to the geographical location aspect. Therefore, geo-targeting stands out as the most relevant method for targeting based on geographical location derived from IP addresses.

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