When to Use Localized Advertising Strategy

"A better fit with local markets means the advertiser is less likely to overlook local variations that affect the buyer behavior."

A local advertiser has a small target audience to appeal to when catering to a local market. Therefore, not only is the advertiser less likely to overlook local variations but also more likely to pay extra attention to details.
In addition to having to appeal to a smaller audience, a local advertisers is most likely to be familiar with market's psychographics such as culture, traditions, and values as well.
Obtaining the demographics and psychographics of a market is simple, but in order to really understand the psychographics, I believe the advertisers needs to be a part of it.
Knowing the culture and traditions of a market is most likely to assist the advertisers in creating the most efficient and politically correct advertisements.
Local advertisers have an advantage over foreign advertisers in that they are most likely part of the market's psychographics, giving them first hand knowledge.