Well,Bronson and Cannon,you both are correct,hosting a website on the servers in or near the targeted geo-location certainly helps.But,for example,initially you are targeting the customers from the UK and later plan to attract customers from US as well,then you definitely would not move your website to servers located in US. You would include the popular search terms used by US visitors in your webpages. Basically,there are various factors that help you optimize a website for targeting customers from a particular geo-location.
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