We will test new segmentation and geo-targeting models (prediction #4)

2009 already saw an extensive use of geo-targeting. Google AdWords in particular offers a wide range of options such as domain name (e.g. google.de), search term (e.g. hotel Mexico City) and IP targeting (only users located in one given area will see the ads).

This trend will accelerate this year due to a number of factors such as:

1) Higher Cost-Per-Click (CPC) that pushes advertisers to look for those long tail (and more costs effective) keywords
2) The release of SpeedPPC version 4 which makes building geo-targeting campaigns very easy. The latest software now offers multiple seeds keywords where in past it only offered dual keywords. While in the past, we might have used 'Car dealer' 'Atlanta' to create 'Car dealers Atlanta', we can now add a third element 'Georgia'.
3) The proliferation of the Google Local Business Center. Businesses can now register for free and have a presence on Google map (including offering coupons). What does this mean for their Pay-Per-click efforts? Businesses who are already using AdWords can now add their address in the ad. I will post more information as I test this new feature. Stay tuned.

In the interim, here's an example of an ad through the Google Business Center.