What is geo-targeting in marketing?

Geo-targeting in marketing involves delivering specific content or advertisements to consumers based on their geographic location. This strategy allows businesses to tailor their marketing efforts to the unique needs and preferences of customers in different areas, enhancing the relevance of the messaging. For instance, a retail store can promote special offers to customers in a specific city or region, making the marketing more effective by considering local demographic trends, cultural factors, or seasonal events. By doing so, companies not only improve their engagement rates but also maximize their return on investment by presenting relevant content that resonates with the intended audience.

In contrast, the other options describe different marketing strategies that do not specifically relate to geographic segmentation. For instance, categorizing customers by interests refers to audience segmentation but does not consider location. Reaching global audiences without localization ignores the local nuances that geo-targeting effectively addresses. Focusing on social media engagement encompasses a broader strategy that does not specifically involve geographic targeting.