Georeference
To georeference means to associate something with locations in physical space. The term is commonly used in the geographic information systems field to describe the process of associating a physical map or raster image of a map with spatial locations. Georeferencing may be applied to any kind of object or structure that can be related to a geographical location, such as points of interest, roads, places, bridges, or buildings.
Geographic locations are most commonly represented using a coordinate reference system, which in turn can be related to a geodetic reference system such as WGS-84.
Examples include establishing the correct position of an aerial photograph within a map or finding the geographical coordinates of a place name or street address (Geocoding).
Need
Georeferencing is crucial to making aerial and satellite imagery, usually raster images, useful for mapping as it explains how other data, such as the above GPS points, relate to the imagery.
Very essential information may be contained in data or images that were produced at a different point of time. It may be desired either to combine or compare this data with that currently available. The latter can be used to analyze the changes in the features under study over a period of time.