Location-based ads are displayed based on the zip code location of your Internet modem (including the last four digits). For example, if a local restaurant wants to offer coupons to customers who live in a certain zip code area, location-based advertising allows them to display their online ads to Internet customers who actually live in that zip code area.
Location-based ads may look just like any other online ads. They are NOT in addition to ads you would already see; they will just replace ads that would otherwise appear on your screen. You might find location-based advertising more relevant to you because it allows merchants to offer discounts and promotions based on your specific geographic location.
Unlike behavioral advertising, location-based ads have nothing to do with your Web surfing history. If you see a location-based ad, it’s only because that advertiser has selected your zip code as an area they want to target.