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    Location Targeting Cost


    Hello All,

    I am relatively new to PPC and work for a business that offers these services.
    We currently run a campaign for our local city and are getting not great results, with CTR or Average Cost.

    My boss wants to run a new campaign that targets small locations, like towns and small cities.
    He is convinced that this will yield lower costs, as these specific town names won't have the same competition.

    This doesn't sound right to me: surely the cost will depend on the core keyword?
    Also, with such a wide area we won't be able to have targeted adverts, leading to lower CTRs?

    Is this right? I honestly have no idea about this and would appreciate some advice on it.

    Thanks!
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    Whoops, I meant to post this in the AdWords forum. I dont know how to move/delete this thread now!
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    I've moved it
    Don't have enough Adwords knowledge to answer your question though! I'm sure someone will help.

    Edit: I do know enough to know, Adwords bidding is based on demand. If you have 20 people bidding on a location, odds are the price will be higher than somewhere which only has 2 people bidding.
    Last edited by matt1966; Aug 6th, 2018 at 06:31 AM.
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    It doesn't work like that.

    Including town names on the keyword will not put you away from the competition. Example:

    personal fitness trainer changed to personal fitness trainer in beverly hills

    If your competitor is bidding for personal fitness trainer as a broad or phrase match keyword, then he will still be your competition for the keyword personal fitness trainer in beverly hills.But what you can do is to tailor your ads and landing pages so that they fit more with the new keywords and consequently improve your Ad Rank. If your ad and landing page are about a personal fitness trainer in BEVERLY HILLS, you will definitely have an edge over your competitors whose ad and page are about a personal fitness trainer in general. This will lower the cost necessary for your ads to be on top as opposed to if you weren't that targeted.

    This can also actually improve your CTR if you do make it more targeted.

    But if your boss only wants to change the keywords without improving the ads and landing pages, that really won't improve CTR and costs.
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    Hello Sandy2012
    Thanks for your response, and I'm really glad I was right about that.

    However, he also believes that just the location targeting can help it too, is there any truth to this?
    His idea is that by targeting smaller towns, there is less competition and so the average cost will be lower.
    I haven't really found anything about this online, but I can see how he would think that.

    Are you aware of that being the case?
    I know that costs can fluctuate over areas, but I don't think that smaller towns will offer substantial cheaper keywords.

    Thanks again!
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    I don't think there will be less competition by targeting smaller towns (for the same reason stated in my previous post re broad and phrase match keywords by competitors). The average cost also won't be lower "simply" by targeting smaller towns. To lower the cost, you have to improve your quality score which requires increasing the quality of your ads, keywords, and landing pages (not just the keywords alone).

    But I realise your boss may be referring to something else. You may actually be able to make the most of your cost by location targeting (not necessarily by including town names on keywords... although since you're at it you might as well push for it). You can target locations, make initial tests, and whichever location proves to be getting more conversions (or clicks or whatever metric you prefer), then you can invest more on those campaigns. Eventually you can focus on locations that convert and that will definitely lower your costs in the long run. I mean... sure you may be required to increase your CPC, etc. but since you are converting, the cost per conversion would be much lower (as opposed to a low CPC or low budget yet with less or no conversion at all).

    Check this out: https://www.wordstream.com/blog/ws/2...-bid-modifiers
    Last edited by Sandy2012; Aug 7th, 2018 at 04:57 AM. Reason: additional resource
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    Hey,

    Thanks for the clarification. I think he is just convinced that smaller locations will produce lower costs.
    He's obsessed with Bark and thinks this is how they work (I don't)

    He's not too concerned with raising quality score, wanting just generic adverts for each town, but I will try to convince him.
    Thanks for your help!

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