From the SMX East Conference in New York City, September 27-29, 2016. SESSION: Location Targeting: The Benefits Of Thoughtful Segmentation. PRESENTATION: Location Targeting: The Benefits Of Thoughtful Segmentation - Given by Kevin Fleming - Red Ventures, Paid Search Associate. #SMX #31B3
2. #SMX #31B3 @KevinFlemingJr
Started in marketing analytics before
moving to search
Managed accounts within
telecommunications and insurance
industries
University of Virginia graduate
KEVIN FLEMING
Digital Marketing Associate
@kevinflemingjr
3. #SMX #31B3 @KevinFlemingJr
Founded in 2000, now has 3,000+ employees,
voted among Charlotte’s best places to work for 8
years running
Technology-enabled platform for launching and
growing sales & marketing businesses
Partnered with large corporations across
telecommunications, finance, insurance, energy,
and other industries
5. #SMX #31B3 @KevinFlemingJr
o Right audience + right messaging = Better ROI
o Geographic performance differences impact
your bottom line
o Competition, product preference, conversion rates, etc.
o Harness the power of locations by optimizing
their treatment
IN REAL ESTATE AND PPC: Location! Location! Location!
Location Targeting: Overview
7. #SMX #31B3 @KevinFlemingJr
PICKING THE RIGHT LEVEL
Country
State / Region
DMA / County
City
Zip Code
Radius / Other
BITE OFF
WHAT YOU CAN CHEW!
Location Targeting: Overview
“Group geographies with similar characteristics together to help find the right
balance of customization vs. simplicity #locationprotip”
8. #SMX #31B3 @KevinFlemingJr
o Insurance company writing policies in a limited number of states
o Treat large metropolitan areas differently for better results
o Ecommerce retailer selling luxury items
o University locations may not be strong converters
BEYOND BASIC ACCOUNT STRUCTURE
Location Targeting: Overview
“Set up your geographic structure to drive towards your KPIs and be ready to
test and evolve it #locationprotip”
10. #SMX #31B3 @KevinFlemingJr
54%
61%
72%
50%
55%
60%
65%
70%
75%
2014 2015 1st Half 2016
Level of Most Specific User Location:
Google 2014-2016
Zip Code
*A pool of 330MM impressions over a period of 2.5 years from clients advertising across the country
MOST SPECIFIC LOCATION - GOOGLE
Data Trends and Settings
“Google can track over 70% of impressions to the zip code level, a 33%
improvement since 2014 #locationprotip”
11. #SMX #31B3 @KevinFlemingJr
3.2% 4.7% 4.4%
21.9%
65.8%
0.3% 0.4% 2.5%
18.8%
78.1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Country State County/DMA/Other City Zip Code
Geo Level of Most Specific Location by Device
Mobile Desktop
*2016 YTD pulled from a pool of 50MM Impressions from the same dataset
LOCATION TRACKING BY DEVICE
Data Trends and Settings
“On mobile devices, ~8% of impressions may only be tracked to the state or country
level #locationprotip”
13. #SMX #31B3 @KevinFlemingJr
UNSPECIFIED CAMPAIGNS
Target United States Negative all the states Gauge “unspecified”
performance
Optimize treatment
Data Trends and Settings
“Set up unspecified campaigns to avoid missing out on potential impressions
#locationprotip #nomorelostimpressions”
14. #SMX #31B3 @KevinFlemingJr
o People in, searching for, or who
show interest in your targeted
location
o (Google and Bing recommended)
o People in your targeted location
o People searching for, or who show
interest in your targeted location
ADVANCED LOCATION OPTIONS
Data Trends and Settings
15. #SMX #31B3 @KevinFlemingJr
*Based on 500k impressions in campaigns targeted at the Nashville DMA in 2016
HOW CAN THIS SETTING IMPACT PERFORMANCE?
Area % Impressions % Clicks % Cost
TN + KY 92.3% 96.2% 95.6%
Outside of Either State 7.7% 3.8% 4.4%
CTR
-51%
CPC
+17%
4.4%
Of total spend
Performance outside of TN + KY
Data Trends and Settings
“Over 4% of your spend could be wasted on searches outside your target locations
#locationprotip”
16. #SMX #31B3 @KevinFlemingJr
Telecommunications Partner
People Searching for or Interested In
ADVANCED LOCATION OPTIONS: TEST
CTR
-7%
CPC
+5%
Conversion Rate
-24%
CPA
+38%
Data Trends and Settings
Delta vs.
Physical
Location
o Split out campaigns into physical location only and location of interest only
18. #SMX #31B3 @KevinFlemingJr
NON-BRAND BIDDING BY GEO CONVERSION RATES
o Substantial gains possible even without
sophisticated technology or third party
tools
o Geographic bid multipliers based on
conversion rates by city
o Hold spend level by keeping average
auction bid the same
+20%
Click Conversion
-24%
CPA
Driving Performance
“Location bid modifiers can drive conversion lifts and boost revenue without increasing
spend #locationprotip #modificent”
19. #SMX #31B3 @KevinFlemingJr
AD MESSAGING CUSTOMIZATION BY GEO
+6%
Visit
Conversion
+5%
CTR
NYC Skyline
Landing Page
+17%
Revenue
Driving Performance
“Customize ad copy, extensions, and landing pages within a geography to drive
meaningful lifts #locationprotip #geomizeit”
20. #SMX #31B3 @KevinFlemingJr
GEOGRAPHIC PRODUCT PREFERENCE
o Higher % of customers buying lower value internet only product in California
o Focused both ad copy and landing page on internet only
o Previously advertising higher value TV-included packages
+4.5%
CTR
+20%
Click conversion
+15%
ROAS
Driving Performance
“Look at your data to understand customer intent by geography and tailor your
messaging towards those preferences #locationprotip”
21. #SMX #31B3 @KevinFlemingJr
LEVERAGING EXTERNAL DATASETS
o Use other channels and datasets to help create geographic segments
o Paid Social, Google’s Household Income, Census, Demographics, Client Data, etc.
o Split out potential high value geographic segments
o Measure performance
o Target with right offer/product
Control
Geographic
Segment
High Value Geo Segment
+40% CTR lift
+36% Revenue lift
+33% Conversions per impression
High Value Geo Segment +
Tailored Offer
+26% CTR lift
+17% Revenue lift
+21% Conversions per impression
Driving Performance
“Leverage demographic data to find high value geographic segments and then test out
custom treatment #locationprotip”
22. #SMX #31B3 @KevinFlemingJr
Connect with the right
audience by carefully
choosing your geographic
structure
KEY TAKEAWAYS
Bid differently based on
geographic performance
Set up unspecified campaigns
and test your advanced
location options
Tailor ad copy, extensions
and landing page by location