Well… Take it with a grain of salt. Here is what Google says:
“Analytics provides a number of geographical dimensions, such as City, Country, Continent, etc. The values for these dimensions are automatically derived from the IP address of the hit, which is convenient but also has a few drawbacks:
IP-based locations are approximate. IP-based geolocation services can only provide an approximate measure of geolocation accuracy. With these services, you can obtain 95 percent to 99 percent accuracy of a user’s country. IP-based geolocation services provide 55 percent to 80 percent accuracy for a user’s region or state. And they provide 50 percent to 75 percent accuracy for a user’s city. In practice, the actual accuracy may vary from provider to provider and depending on the device’s location. For instance, IP-based geolocation services typically work better in big cities and work less well in smaller ones.
Location is typically based on the Internet Protocol (IP) address, which is a unique number assigned by Internet Service Providers to each computer connected to the Internet.
If a device is connected to a Wi-Fi network, we may detect the Wi-Fi network’s IP address to determine physical location. If a mobile device is connected to a mobile carrier’s proxy server, we may use the carrier IP to determine the device’s location.”
Which means that if someone is connected through their company’s server which is in another state, Google Analytics would record the location as where the server is rather than the actual user.
To read more info and see examples on this click here.
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