The Art Institute of Chicago wanted to add a splash of color by injecting youthful new blood into its membership. What it got by advertising through a Web site that geo-targeted consumers was 5,000 new members in the demographic it was trying to reach—18- to 35-year-olds—upping its rolls by 5 percent or 6 percent in one day, says Andrew Mason , founder of Chicago-based publisher Groupon. The bonus was that 97 percent of those signing up for the 50 percent-off membership never had been institute members before.

Mason joins many who believe that direct marketers, especially brick-and-mortar businesses, can gain a lot by geo-targeting consumers through affiliates. Raychel Espiritu , traffic support representative for Encino, Calif.-based geo-targeted search engine marketing company LocalPages.com, and Mason Wiley, senior vice president of marketing for Beverly Hills, Calif.-based affiliate advertising network Hydra, also offer pointers.

1. Find local affiliates or affiliates that already geo-target their services for consumers. Mason's Groupon, for example, seeks discounts from businesses and offers them to consumers who must amass into a certain size group before the discount becomes a reality. To get the daily coupons, consumers provide their e-mail addresses and pick cities. If they want to hurry the deal along, they use tools on the site to share the offer with their friends and encourage them to buy. "We send out a daily deal on one of those businesses," he says. "So business owners sign up with us, we write a description about the business and we offer some kind of a deal, and basically drive hundreds of thousands of customers to a different business every day in cities across the country."

In addition to the institute, Mason cites a skydiving business in the Chicago suburbs that saw 1,500 conversions in one day after offering a half-off coupon. That one placement increased the company's annual business by 25 percent, he says.

2. Convince affiliates to offer geo-targeting options. Espiritu says: "Meet with your affiliates and discuss your geo-targeting options. ... If you own a small business, your best bet is to target local residents." Being local is one of the best ways to be relevant, as 85 percent of consumers buy locally, she says.

3. Clearly explain specific needs. "One should never assume that an affiliate can read your mind or that an affiliate will always know what type of traffic is required for your business," Espiritu says. "Affiliates supply traffic ... [so] once you have determined what type of traffic you require, you can meet with your affiliates and discuss how best to target this audience."

Two years ago, one of LocalPages' clients needed local foodies who appreciated Italian cuisine. Kale Rey, the owner of a small Italian restaurant in Glendale, Calif., was on the verge of shutting his doors. LocalPages affiliate managers worked with Rey to come up with geographical boundaries and began geo-targeting consumers in his area. In a few months, Rey's restaurant began seeing more customers and, that year, began showing a profit. The business is still open, thanks to geo-targeting consumers through affiliates, Espiritu says.

4. Know the desired geographical boundaries. Decide what local means, Espiritu says. "Take the time to meet with your affiliate and set up geographical boundaries." Is it a city? Or is it a region?

5. Provide affiliates with advertisements, or provide for advertisements, that already have localized keywords included in them. Wiley says: "Note that with Google geo-targeting, Google will show your ad only to people within the regions you specify. So if you specify 'BBQ ribs' as a keyword, and you indicate Chicago as your geo-target region, Google will only display your ad to people in Chicago who search for 'BBQ ribs.' Alternatively or in addition, you can add local terms in your keywords. For example, 'Chicago BBQ ribs.'"

6. If affiliates have localized e-mail lists, ask them to help with a local campaign. Wiley says that affiliates sometimes have their own geo-targeted e-mail databases. Check into using them or running an ad through the affiliates' e-mail deployment.

7. Remember that affiliates often self-select advertisements. If a business provides an affiliate with a geo-targeted advertisement, Wiley says, "They're not going to run it unless they can deliver it to that geo-target."

8. Sign up for the affiliate's e-mail list or visit the site to ensure that the geo-targeting is being done properly. Wiley says that it's important to ensure, for instance, that those who've opted out of e-mail notifications are not solicited. "You really have to have systems in place to monitor all activity all of the time," he says.

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