Beyond the city level, your geotargeting on Facebook can further narrow your targeted customers to within miles. For example, a fairly standard radius is 10 miles and closer when you’re targeting a specific product or service in a particular vicinity. If you’re in a more rural setting, you can expand that radius to 20 or 25 miles. Urban areas like Chicago, Los Angeles and New York are targeted within one mile.
The first step in this process is determining who are the top four competitors that we want to use for this analysis. I like to use a mixture of direct business competitors (typically provided by my clients) and online search competitors, which can differ from whom a business identifies as their main competitors. Usually, this discrepancy is due to local business competitors versus those who are paying for online search ads. While your client may be concerned about the similar business down the street, their actual online competitor may be a business from a neighboring town or another state.
Now the ad servers don’t create this table themselves, they license it from another company like MaxMind or DigitalEnvoy, whose primary business is geolocation data. This is no enviable task; IP addresses themselves don’t necessarily have an obvious pattern in the way they are assigned like a telephone area code would. It’s a bit like solving a mystery, and the geolocation companies use a variety of methods to approach the problem. /injects>