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Everything
Geo: the Language of Local Online Commerce
© Sharon Fling
Local
online commerce is going to be huge. According to The Kelsey
Group (http://kelseygroup.com),
local advertising revenues are expected to reach about $50
billion by 2006. Like all big trends, this one has its own
lingo. Here are a few of the buzzwords you may hear in the
coming months. All of them have the "geo" prefix, derived
from the word "geography" or "earth". There's very little
written on this subject, so please be aware that these definitions
are my OWN interpretations of various articles and resources.
GEOLOCATION
As
you might guess, this is the physical location of an individual,
usually a web surfer or Internet user. This term is included
as a point of interest -- who knew there were companies that
provide geolocation services, to pinpoint and identify certain
groups of people on the Internet? There are businesses that
need this kind of information for whatever reason, such as
restricting access to websites based on physical location,
monitoring criminal activities, stuff like that. Here are
some geolocation links: http://www.i18ngurus.com/docs/1004514499.html
GEOTARGETING
(aka GEOADVERTISING)
This
is advertising targeted toward consumers who live in certain
geographic location, which can be as broad as a country or
as narrow as a zip code. The value of geotargeting to local
commerce is huge -- regional advertisers can now be sure that
only local eyeballs will see their ad.
For
example, car dealers can promote convertibles to folks in
sunny climates, while people in snow country may get ads for
4-wheel drive SUVs. Geotargeting technology is still being
developed, but most current methods rely on the surfer's I.P.
address or zip code. In the future, more precise targeting
will be available as more user data is gathered and detailed
user profiles are created. For a more detailed discussion
of geotargeting, see "Geotargeting Delivers For Local Business",
http://www.localbusinesstoday.com/articles/geotargeting.htm)
GEOINTELLIGENCE
This
is information provided to a company about online users who
use their product or service. Think of it as the product delivered
by companies who provide geolocation services. Companies can
then use this info to make timely and informed marketing decisions.
GEOCOMMERCE
As
defined by The Kelsey Group, geocommerce is "the use of the
Internet to facilitate commerce among small to medium- sized
enterprises (SMEs)." In essence, geocommerce is the ability
to combine the new technology with traditional advertising.
It gives SMEs the tools and utilities needed to leverage the
global Internet, and traditional local media to geographically
target local users.
Well
that's quite a mouthful, but it any way you look at it, geocommerce
is where the money is. In 2000, this translated into a local
media market of $33 billion dollars spent by small businesses
on print Yellow Pages, newspapers, Web sites, banners, direct
mail, coupons and other locally targeted advertising and promotional
media.
"Small
businesses will continue to adopt new electronic media as
providers offer greater geotargeting options with proven results,"
said Neal Polachek, senior vice president, research and consulting
for The Kelsey Group. "This means that businesses will be
able to target online promotional messages to consumers in
the select geographic areas of the market where they want
to grow their businesses-whether worldwide or within five
miles of their location."
GEOPROFILES
This
is a new technology, so new that I could find only a few references
that related to marketing (the others were about weather and
criminal profiling). Geoprofiling combines traditional geotargeting
with Web user profiling. It's a multi-dimensional approach
that results in a more accurate pinpointing of geographic
location than you would get from any one of the usual geotargeting
methods alone.
It
works by gathering data from web surfers, who can leave plenty
of clues about geographic location during normal online activities:
requests for driving directions or weather conditions; certain
search engine queries, especially those that include city
names; local entertainment information such as movie listings,
sports schedules, concerts; requests for local business guides
and other regional sites.
Lest the privacy police become alarmed, the profile collection
systems are designed so that individual users remain anonymous.
And because all of the data is either inferred or deduced,
there's no way to tie it to names and addresses. With its
promise of precision and anonymity, geoprofiling offers a
glimpse into the future of localized online marketing. For
more info about geoprofiles (and to find more "geo" words),
visit the Quova website at: http://www.quova.com/services/geoprofile.html
LAST
BUT NOT LEAST ...
Finally,
there's GEOLOCAL, the word I chose to represent my "brand"
so to speak. Geolocal -- "local earth." It seemed to perfectly
represent my focus on using the Internet to promote business
locally. Remember, the world is global, but our lives our
local. Visit www.geolocal.com and stay geo-tuned ...
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