Google's Matt Cutts has posted a new video talking about how Google deals with geographic targeting. This is a subject he has tackled on more than one occasion in the past, but in this latest one, he is elaborating on it a bit more, and explains that Google is looking more and more at this stuff as time goes on.
A study that the Rimm-Kaufman Group began in early August set out to find out if certain regions and specific zip codes play significant roles in paid search conversions. The thinking was that low-population areas with fewer brick and mortar stores are usually more successful for catalogs, so perhaps the same would be true with paid search.
Today Yahoo announced the addition of three new targeting options for Yahoo Search Marketing ads. They are demographic targeting, ad scheduling, and enhanced ZIP-level geo-targeting.