Rvolve, built by open source software developer and entrepreneur Peter Abrahamson, uses geographic search technology to ensure the most location-relevant adverts are shown to potential customers.
The platform, which launched in beta today, operates on a pay-for-performance model, so advertisers only pay when their goods or services are purchased.
Customers will click on a text advert and can then purchase online via Rvolve's coupon, which sits above the advertiser's website, before redeeming their personal purchase code at the local store.
According to a release publishers will take away a 66 to 75 per cent share or revenue, depending on whether they introduced the advertiser to the service.
Abrahamson said he came up with the idea after being unable to find a solution when he wanted to advertise his bike rental venture to within one mile of the 60 different rental locations.
"For advertisers, Rvolve gives new options to target around a series of shops, for example. Because the ads are distributed on multiple sites, there is an opportunity for large numbers of highly targeted local customers, which is the kind that actually purchases."
Abrahamson added that the service has already attracted "a small collection of interested advertisers and publishers", including hyperlocal site the Lichfield Blog.
"As a site covering the goings-on of a clearly defined geographic area - aka 'hyperlocal' - the Lichfield Blog is very aware of location," the blog's Philip John said in a release.
"We realise there is a demand for good, targeted advertising from local businesses and we hope to use Rvolve to accomplish that, both through a business directory and mobile applications."
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