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If you don't have it, and don't yet want to buy the full geoip database, you will need to download the free geoip database they have on their site (don't remember where it was exactly) and install it. It isn't perfect, but close. You will then need to set it to the proper database type. (MaxMind). Running the geo targeting feature itself isn't too much extra load, but enabling detailed stats is... I wouldn't use these stats unless you need them for some reason.
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