I’ve never used Kanoode but I think I just might as they have added new GeoTargeting features to there PPC Search Engine.   But what’s even more interesting is this single paragraph about why targeting by location is really important:

With recent studies showing that consumers make 80-90 percent of all purchases within ten miles of home, Kanoodle COO Doug Perlson explains in a press statement “Kanoodle’s ads are presented on the Web’s best sites, so they reach a very diverse audience. With enhanced geo-targeting, we bring our advertisers one step closer to their target demographic.”

I don’t know where that information comes from (it’s not mentioned) but if it’s true, it’s a great reason to GeoTarget.  Sure, most people are researching on the Internet but would rather buy locally (makes sense).  Somethings you can’t buy locally (like a deal on trading cards that my son asked me to order on EBay), but many things you can buy locally (IE: Furniture, Computers, Cell Phones, Books, etc) and searching on the Internet is the way to find out more information before you decide what to buy.

I’ve done a few Geo Targeted campaigns for clients but I think the best way to use Geo Targeting is to research your audiences first (use MSN Ad Center or HitWise, if you can afford Hitwise,  to find the approximate locations where products are being clicked on the most and the Geo Demographic clusters most responsive).  HitWise’s Geo demographic clusters based on Clairatas PRIZM system are probably superior (64+ cluster groups) to MSN’s 12 Clusters based on Mosaic.

The clusters are assigned based on Geo locating the searcher as they click on a paid ad and then mapping that user to an map/location of the geodemographic clusters throughout the United States.   MSN also mixes in age and sex characteristics - it’s a lot of data to merge but I think the product will get better as time goes on.