A method and system for generating electronic advertisements, such as banner ads, based on user profile information, location information and proximity preferences are disclosed. An online promotion service may receive profile information, location information and other information from a user. The user may also define a proximity preference which may include a range of distance the user is willing to travel to redeem one or more promotions. A service or product provider or other authorized entity may define a proximity preference which may include a target range of advertisement exposure. The online promotion service may present advertisements for incentives and other promotions based on user profile information as well as proximity preference information where the proximity preference is defined by the user, the provider, or both.