From Click Z news Google focuses local ad targeting .
I know this story is a little dated, but there's a reason I bring this story up. It plays a key role in my upcoming story on the many multi-billion dollar apps Google can implement.
Search giant Google will offer its advertisers the chance to more tightly target the geographical areas where their ads will be seen
The Kelsey Group expects that local paid search will amount to $2.5 billion in the United States by 2008
The new features also let advertisers around the world create "customized targeting." In this case, an advertiser indicates where his business is located -- either with an address or with latitude and longitude information -- and can then specify a radius in miles
Google infers the searcher's location by looking at the user's IP address, and also by looking at the user's search terms. If someone types in "sushi 10016," the technology surmises the person wants raw fish joints in that ZIP code -- whether or not the person is using a computer in that location. Previously, Google used only IP address data to deliver regionally targeted ads.
Now think about what Google can do with a GPS coordinate for mobile search. Stay tuned I have the answers.