Set location bid adjustments to focus on areas where you’re getting more business.
Overview of location bid adjustments
Part of the roll-out of the Enhanced Campaigns enabled advertisers to optimize bids towards specific locations within a campaign target area.
For example, where an e-commerce site has a campaign targeting the whole of the United States and campaign stats prove that New York State has a higher conversion-rate compared to that of Colorado - we are able to apply a bid multiplier to New York State (+70%) to further increase ad rank, thus exposure and resulting to more traffic and increased CvR. Also, allowing us to apply a minus location bid adjustment to Colorado (-25%) where CvR and revenue is seen to be lower.
How do I/my clients use location bid adjustments to focus on areas with more business potential?
Applying a location bid adjustment to a major city, (i.e. San Francisco, when targeting the USA) where I’ve seen higher CTR & CvR. This usually helps improve ad rank and exposure. It also and drives-up traffic and effectively even more conversions.
Why do I think location bid adjustments can be helpful?
From an advertiser’s perspective, location bid adjustments have simplified bid optimization by allowing us to apply different bid strategies for specific geographical locations, within one campaign.
From the businesses and clients’ perspective: LBA allows more granular bidding and increased exposure in areas where there is proof of higher profit margins.
How did setting location bids adjustments help me/my client be more successful with AdWords?
When we have a client with a hotel booking website targeting the whole of the UK, location bid adjustment allows us to bid more for areas that the client has a higher profit margin. That further allows us to pay more for CPC, resulting in increased visibility and more bookings.
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