Geo Targeting is a targeting method that uniquely identifies computers or mobile devices based on their location.
Since this technology allows to exactly determine the location of a user, it enables marketers to deliver their advertisements to potential customers based on their geographical location. This can be done in different dimensions e.g. on the city or zip code level via IP address or device ID, or on a more granular level through GPS signals, geofencing and more.
The idea behind using geotargeting for advertising issues is that the location of a user always provides information about his environment and mindset at a given time. This way it helps advertisers to serve users with relevant and interesting content. And the more relevant an advertisement is to a user the more likely it is to drive sales.
But geotargeting does not necessarily have to be based on a users real-time location. Locations a user has visited recently can also provide a lot of information about his interests and preferences. Considering this, targeting based on recent locations can also be a key to delivering relevant messages to potential customers.