Localizing ad buys has been on ongoing challenge for digital agencies, but a new tool from Yahoo may help simplify the process by allowing ads to be sold based on a user's ZIP code.

Yahoo, which announced ZIP code targeting on its company blog, joins Ask.com as the only other major search engine to offer such a service.

The new tool comes amid growing upheaval at Yahoo, which is expected to announce massive layoffs later this week. But despite trouble at the slumping internet giant, Yahoo is making a concerted effort to push its search capabilities. If Yahoo can deliver better geo-targeting to advertisers -- and in turn offer improved sponsored local results to surfers -- the company may be able to turn over a new leaf, provided that ZIP code targeting is as good as advertised.