For example, if a user from a high income neighborhood visits a car dealer’s site or clicks on a paid search display ad, that consumer may be directed to a landing page displaying a luxury vehicle, while consumers located in a lower income area may be targeted with a deal on an economy vehicle. The higher income consumers may be more interested in deals such as cash off or lower interest rates whereas those in lower income brackets may be more receptive to lower monthly payments.
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>