The type of geocoding
you want to do determines the type of lookup data that is required.
Granularity of information is an important consideration in determining
which geocoding process to use. For example, does the location need
to be an actual house location, or is a ZIP code or even a city sufficient?
If you are viewing the addresses on a state or U.S. map, then the
ZIP code or city location is probably accurate enough.
The age of the lookup
data also affects your decision. How current does the data need to
be? Street address data frequently changes with the addition of new
roads and changes to postal codes. The older your lookup data, the
more likely it is that some address matches might be incorrect or
missed completely. On the other hand, city and state lookup data do
not change as often.
The more up-to-date,
accurate, and fine-grained the data, the more it costs to purchase
and maintain. Also, higher-resolution data requires more disk storage
space and takes longer to geocode. There are free sources for some
types of data, but these might not be updated as frequently as the
data you purchase.
It is important to remember
that both purchased and free lookup data might give incorrect results.
There are no guarantees with any geocoding lookup data, so the results
should be with used with caution.