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I recently read a well-written article by Search Engine Guide, which outlined the ways one can use the geo-targeting features of Google Adwords. My problem with this article and the other ones on the subject that I have read lately, is that they are now written without the caveats that typically accompanied them a year ago. Most articles written on the subject a year ago… warned: the system is not perfect. I would go further and say… the narrower the region being targeted the more flawed the geo-targeting. Consider this search for Newark NJ in Google Trends:

These results would not give me the warm & fuzzies if I were running a campaign that was geo-targeting Newark.

This is important because the purpose of Geo-targeting is to put your ad in front of a person who is using a generic search query that has local intent. For Example, “Dentist” as opposed to “Dentist Newark NJ.” Studies have shown that half of local queries are entered without the geographic indicator. And Geo-targeting should give you a leg up in trying to capture these sales. The above Google Trends report argues otherwise.

If the IP addresses of searchers shopping online in Newark are in Oakland, NJ and Clifton, NJ; advertisers’ results are going to be adversely effected. Such campaigns would be plagued by low CTRs and/or wasted spend.

Take-Aways for when you’re targeting a small geographic region with adwords (City, County, a few towns etc.):

• Don’t rely on Geo-targeting. Use keywords that include the geography you’re targeting as well.
• Put Geo-targeted ads in a separate ad group, so that there lower CTRs don’t effect your higher performing ads.
• KNOW the addresses of the local Cable/DSL provider in the area where you are going to Geo-target. Many of the cities listed above in the Google Trends report are those where Cablevision is located; or in the case of Madison, NJ… where the IP originates for Verizon DSL customers. My IP is located in Madison, despite me being some 30-40 miles away from there. And Oakland is a small town about 50 miles to the north of Newark; but the IPs of many Cablevision customers originate from that town. The results of a local campaign could change dramatically by just adding or subtracting one of these important but sometimes very small towns.
• TEST!

Some Assumptions I Made Interpreting This Data:

1)People who most frequently use ‘Newark NJ’ as a search term, do so because
they live in or around Newark. 2) And that group would be representative of those who are shopping locally but use the generic search term.
Because we are studying this from the “reverse angle.” Google trends is showing us the location of the IP address for those who type Newark. Geo-targeting in Adwords would return results based on the IP address of a shopper who did not type in Newark. 3) Google uses the same IP tracking in Google Trends as it does in its Adwords system.

I believe those assumptions are true based on the results I’ve seen personally in the geo-targeted advertising that I’ve done, though admittedly a small sample. But the more relevant cities I saw in Google trends for the applicable geography, the higher the CTR of the advertising…. again very very small sample.

For those who are running “tight local campaigns” could you do me a favor? Please use Google Trends and search for a town or 2 in your area
and let us know if you find anything that would make you agree or disagree with what I’ve asserted in this article. Thanks!

Good Additional Reading on Geotargeting:

Geotargeting Adwords by The Merjis Blog

Geotargeting: Core To Local by Chris Silver Smith

If there is any doubt about the value in local, one needs only to saunter over to Spyfu, where the list of 1000 most expensive keywords (opens in new window) can be found. And take note that out of the top 200 almost 80 have a geographic indicator… including the top 2.

This got me thinking that many advertisers have thrown ROI out the window and are simply looking for the largest volume of business. I have no problem with this as it is easier to take dollars to the bank than fancy percentages, but it got me thinking… if I were managing one of these campaigns, could I find other outlets that when aggregated could bring down the average cost of customer acquisition and raise the overall ROI of the campaign, while still providing enough dollars to justify the time expenditure?

So, I put on my thinking cap and tried to come up with 5 local sites on which to advertise where I might do better than $50/click but still get quality, if not the volume. I am not suggesting these portals are better but are worth testing in hopes of getting enough volume to raise the ROI of the Campaign.

1. Free 411 - The jingle network claims to serve over 20 million calls per month, which is the rough equivalent of the uniques garnered by the largest IYPs each month. When someone needs information, they don’t have to pay for the call, but an ad is played. And the caller is given a choice as to whom they would like to be connected, the desired number or the advertiser by selecting the star or pound key. A lawyer is around $20 for a phone call. And let’s face it… the choice selected by someone just arrested for DUI in Dallas’ is truly 50-50.

2. Superpages.com- This IYP has a program they call Exact Match (warning: pdf). Exact match is a program that reserves the #1 spot in any given category for a business with a physical location in the exact geography searched with a minimum bid of $2.50. This could result in lower prices on high quality clicks as you are only competing against those businesses with a physical address in that city. These ads are distributed at to msn local, switchboard, citysearch et al.

3. Craigslist - Free Clicks Vs. Large Time Expenditures… nothing is free.

In some of the less competitive service categories the listing can hang for up to a week. But best results are achieved with continuous deleting and re-uploading of your listing for top placement; hence the time factor.

4. Local.com In May, Loren Baker of Search Engine Journal reported that Local.com has a new program called local verified. Which allows an advertiser top placement for $249/year. If this is really the price, of which I’m skeptical, some steals may be available. For Example, Mortgages in Manhattan is wide open. Christian Nielsen reports that he was solicited for the service and was told the price was $749. Even at this price it could still be a bargain if they delivered even decent click volume for a high priced term.

This listing may come with a little bonus too. As I found the link counting in Google Maps for one of the “local verified listings”. This could make sense since this placement is only granted after it is hand-edited. Loren reports, that the business has to be in good standing with the BBB.

Hmmmph! - I could only come up with 4. How about you? Any gems you care to share. And misspellings and brand name keywords don’t count since the likes of ‘remorgages’ and ‘Gyco’ are both coming in at a pricey $40/click.