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Geographic optimization is basically "geo-targeting" a website to it's geographical location. Here's a great example in which I use a Fort Worth sprinkler and lawn company, grasseaters.com. This landscape company only serves the greater fort worth Texas area. If this company was only to target keywords such as "landscaping" "lawn care" etc.. they would not be optimizing geographically, and they would not be getting the full benefit of their location. But, if they found keywords such as "Fort worth landscaping", then they will be geo targeting the correct area. See the website I linked to below for an example of this fort worth landscape company.

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