Most people think of geo-targeting settings for two reasons: either supporting the geographic areas their business supports, or for local promotions or events. While geo-targeting makes perfect sense in those situations, using geo-targeting in even your regular campaigns can have some significant advantages, even if you already have a successful paid search account.
Why should you geo-target your successful paid search campaigns? Basically, geo-targeting provides another layer of data, deeper than the keyword level. It expands on the knowledge of which keyword is performing, and adds information about which state a keyword is performing in. This allows your bidding decisions to be made with better data based on these regional factors:
- Competition: The number of advertisers is different for each region. While you may not be geo-targeting, many others are. So your CPCs can, and will, be very different.
- Product price: What costs $100 in West Virginia may cost $200 in New York. Therefore, your CPA metrics can and should be different for each region, because revenue will vary based on location. This impacts your ROI and, therefore, your allowable CPC.
- Conversion rates: Some regions are in better economic situations than others, and are more likely to purchase and convert. In other cases, one region may have users that are more Internet savvy, etc. Many factors can affect conversion rates, and these factors will vary by geography.
- Brand awareness: Your brand may be stronger in some parts of the country. This might be based on the way various media is purchased, or store locations. This difference will impact your CTRs, and therefore your quality score.
- Ad copy: It may be hot in Florida and cold in Maine. There are also regional differences in what things are called, or ways things are talked about. The message in your ad copy could target these differences.
searchenginewatch.com
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