Do domain name extensions matter when optmalizing for a certain language?

[Fonz]

Let's say I want to attract dutch speaking surfers only. Does it matter if I use a .com/.net extension or would I be getting better results using a .nl/.be extension?

[Bobc01]

I'd say .nl/be, i use geo targeted UK domains as most UK directories only accept .co.uk etc, plus international listings.

Kind of best of both worlds if that makes sense.

[Isabelle]

I'm pretty sure it will work in your advantage!

[Halfdeck]

If you decide to go .com, you need the domain on a Beligan IP. Walmart, for example, bought a .com, put it on a UK domain and SEOd the hell out of it to rank #1 under a month for "car insurance" in UK local.

That's a competitive term, so it proves their decision not to bother with a .co.uk TLD wasn't a bad one. If you want to play it safe I say go with a .be and put it on a Belgian IP. I wouldn't think of those factors as ranking boosters though; they help Google decide whether or not to include you in local searches. So if you got a .be domain on a BE IP that's not necessarily going to help you outrank a .com on a BE IP or a .be on a US IP.

Why did Walmart optimize for UK traffic? According to Google Trends, more people from the UK than US search for "car insurance."