We are going to explain how you the Google Adwords advertiser should be using Location based targeting to improve your bottom line and ROI. As a part of a broad spectrum lead filter, location targeting should provide a base of every single campaign activated from within your control. If you do not fully understand it’s benefits or implantation process, this article is for you…
What Is location Targeting
As is always the case, the ability to track website visitors online via location exists through normal ip address based tracking. Because of this, Google Adwords allows advertisers the ability to reach their potential customers through geographical means. Similarly, an advertiser may reach additional potential customers geographically who visit websites powered by the Google Adsense program.
How Location targeting can help your business
If you already have a high in demand product or service, a full scale geo targeted adwords campaigns may be ran on a marco level to leverage and discover profitable geo locations. First an advertiser spends his time discovering where conversions originate, then diverts his budget to what is working.
If you are for instance selling a high end product, you probably do not want poor individuals finding your website and vice versa as income level dictates a strong conversion correlation. An advertiser could figure out which areas are prime for selling a particular product or service by researching an areas average income level ahead of time, he would probably save him or herself some money.
We won’t always discriminate based on income prematurely, but for a great number of products or services we will. This is just one example of how location based targeting affects conversion rate, but also does include many location based cultural variances. If you are unfamiliar with your typical customers demographic, then a broad based targeting campaign may be in order to determine this.
How to Setup Location Targeting
If we for instance only wanted to target potential customers in Toronto, Canada, then we would specify this in our Google Adwords account via our locations targeted list. If an Adwords advertiser would like to advertise in Toronto and Alberta both, then both locations should be listed. Location targeting will allow the advertiser to specify exactly where customers are coming from at any level or arrangement he or she wishes. Locations can be added one at a time, or in bulk using Google’s Adwords editor.
*If you do not understand how to use Adwords editor and wish to add many locations to many campaign at one time, you are going to give yourself a headache—it is best to hire an account manager such as us to handle the job.
One thing you must remember when adding locations to target on your Adwords campaigns is that positive locations targeted are NOT going to prevent ads from showing in areas outside your positive locations targeted list… only negative locations targeted in list will prevent this. True ads may likely show in positive locations listed without negative location restrictions, however this is never true in every circumstance. For this, the best way to prevent clicks outside your preferred geo-targeted area is to list all countries outside your geo targeted area by country, province, and city accordingly.
Setting Goals For Location Conversion Optimization
To discover “who” will purchase from “where”, we must only setup the proper conversion goals in Google Analytics and filter down by location. If you haven’t setup goals in Google analytics before, simply go to the “Admin” section of your account, and click on “Goals”. From there, you can setup what you think is important to track. If you think a purchase or form fill is important for instance, setup a goal specifically for this. If you think gaining subscribers is important, then setup a ‘time on site’ metric. You can set up to 16 formal goals plus ecommerce tracking if you are running an ecommerce site. Once we are finished setting up goals, we are ready to figure out “who” completed these goals, and from “what” location.
Running Analysis On Your Location Reports and Goals
Before you go ahead and make any decisions as to what types of potential customers are worth spending advertising funds on, I do recommend operating your site for at least 3 months after setting goals. Ultimately, it depends on how much traffic your website is getting. I always let at least 10000 visits accumulate on campaigns I am working on before making any inferences.
Once your sample data is gathered, it is now time to see where your goal setters came from. Once logged into your Google analytics account, simply click on ‘Audience’ from the left hand sidebar, ‘demographics’, then ‘location’. From there, your location data will be displayed. The total number of goals completed by areas can be displayed by clicking on the goal group your looking from from the display menu.
I personally like to setup full ecommerce tracking when applicable to see what a conversion is costing me per city. If I see high traffic cities burning through budget without revenue production, I exclude them in my campaign negative location lists. If I see a particular city performing well, I will create a campaign specific for that location and run it at a higher value to leverage it.
To purge customers who filled out your lead gen form and did not purchase, I do recommend adding a “City” field to your lead gen form and keeping close tabs on your clients through a decent CRM system. End of year reports will tell you which locations are performing best.
Furthermore, it is best to geographically target your call in conversions as well if you are in a service based business to get the full picture as to what is going on. Call tracking software’s are great for proving you an outlet to do this as all calls are logged with a phone number attached. Phone numbers can be geographically reverse engineered and grouped together to give you an idea as to where your calls are coming from. Cellphones may not provide the most accurate picture for this project, but land-lines certainly will. The good news is that phone numbers can be identified as such by its area code and prefix combination. One website I see that has done this well is www.melissadata.com.
Once you have fully vetted your Adwords campaigns by location, ROI will increase accordingly. You should be amazed to know that mostly nobody does this type of traffic filtering and should give you a competitive edge. If you need any help setting up a system such as this, let GetRanked1st know.