Internet Retail has a good article on Rooms To Go generating in store sales through local search on Google PPC.  Rooms To Go tested the campaign twice with similar results, targeting four cities – Austin, TX; Tampa, FL; Charlotte, NC; and Raleigh, NC.  Rooms To Go provided a printable coupon for $100 off the purchase of a $1000 or more.

They found that consumers that used the coupon spent 20% more than the average customer and 86% of sales were in the store from the store from the offer.

 “If you had asked me a month ago, I would have said you can’t drive offline sales with online media,” Seaman says, “but seeing these results I am pleasantly surprised—no, pleasantly shocked.”

Local city targeting occurs by the search engine correlating the browser’s IP address to a geographic location.