Geo-Targeted display ads are set for growth through 2013 according to BIA/Kelsey. This is a strategy that has been in use for some years now. I found this article interesting because it shows “potential” in advertising revenue for geo domains in the near future. If advertisers are paying for geotargeted ads based off of IPs and spending $1.9 billion, then one could conclude they would be willing to pay for display banners on quality targeted geodomains that produce potent traffic. Afterall, it is much more targeted than IPs, as IPs can be off by 30 miles or more. (Read Comments)

Would be neat if an advertising agency was formed to harvest geodomain portfolios and offer geotargeted ads directly to advertisers spending all this money geotargeting by IPs. There would be some pretty good payouts for the owners of these portfolios. It would be another form of PPC without a long line of middlemen taking their cuts. 

Via Clickz.com

The market for geo-targeted display ads is poised for aggressive growth over the next few years, from $897 million in 2008 to more than $1.9 billion in 2013, according to digital media consulting firm BIA/Kelsey.

Geo-targeted ads — banners that are presented only to people logging on from a particular region, or that appear different depending on the location of the user — currently represent only about 10.2 percent of display ad units, according to BAI/Kelsey, which is based in Los Angeles.

But that share will increase to 15 percent by 2013, the firm says, as advertisers look for cheap alternatives to search ads and publishers and ad networks look for creative ways to unload a glut of display inventory.

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