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Code postal impression and money loss

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hello all the pro out there,

Sorry right away for my ordinary english and my mistakes.

 

I have a local business offering services in my business, so location of the customer is an important issue for me.


So I noticed with the adwords reports that I had a lot of imprssions in a very bad postal code for conversion: it costed me a total of 1000$ for only one acquisition in two months.

 

So what do I do? I excluded that postal code thinking I would be fine now, that my CAC will lower and that my ROI will get higher.


But what did I just found?

 

Three weeks later another bad postal code for my business, very close to the first one, started to get more and more impressions and clicks. That postal code is about as bad as the first one in therm of CAC and ROI.

 

I mean, how does it work? When adwords find that I don't spend my budget enough it boost up impressions in a area that could get impression share even if that postal code is not worth it? Will I have to exclude every postal code that are not closed by my business just to avoid losing my budgets for nothing?

 

AM I the only one that experienced this kind of problem?

1 Expert replyverified_user
1 ACCEPTED SOLUTION

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Accepted by topic author François G
February 2017

Code postal impression and money loss

Visitor ✭ ✭ ✭
# 14
Visitor ✭ ✭ ✭

I found the error!


I added the problematic postal code about 2 days after I changed my match types. Didn't realized it at first time. But the new postal code have a big population and it is why I got so many impression in this area.


The support guy from adwords helped me find it.

View solution in original post

Code postal impression and money loss

Follower ✭ ☆ ☆
# 2
Follower ✭ ☆ ☆

Hi François G,

 

Please have a check on location targeting settings, whether you have selected people in my targeting location or People in, searching for, or who show interest in my targeted location, in the 2nd case, Google does show your ads in the locations from where searches are coming related to your services.

You can try following solutions:

   1. Change the location settings to people in my targeted location.

   2. Use bid adjustment for the locations and decrease it by 100% for locations you want to exclude.

   3. You can exclude the locations according to radius of your services by using radius targeting.

Hope this helps.

 

Pranay

Code postal impression and money loss

Top Contributor
# 3
Top Contributor

@François G;

How many conversions  did you have been before the exclusion, over what timeline? For  CPA to  be  a reliable metric, the  number of conversions  must be statistically significant.

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

Code postal impression and money loss

[ Edited ]
Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭

@MosheTLV

 

all of this data is for 5 month or so

 

This bad postal code : 1 conversion for 1000$

Postal close to my business looks like : 10 customers for 100$ invested

 

In the 5 months prior to the elimination of code postal A, code postal B costed me 26$

Now, after 3 weeks of postal code postal A excluded, postal code B costed me 200$

 

For me, with this, its clear that when I exclude a bad postal code, adwords start to increase my impressions in another bad one to reach my budgets, even if the target audience is not really a qualified prospect...

Code postal impression and money loss

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭

@Pranay T

 

Hi, 

 

Thanks for your reply. The problem is more a question of a proportion than actual targeting. I want my ads to show in this postal code, but I don't want adwords to boost visibility way over the others postal codes that are more interesting to me...

 

Thanks for the info also. I'll check it out, if I am not satisfied by the evolution of this I'll reduce ad bids for those postal codes.

 

Code postal impression and money loss

Top Contributor
# 6
Top Contributor

@François G;

AdWords does not "divert" traffic from one Geo region to another. In each Geo region the auction is run independently.

What I think could be the reason is an increase in competition.

Check the following metrics "before" and "after":

Exact match impression share;

Average position

Auction insight: position above rate

https://support.google.com/adwords/answer/2579754?hl

 

Has there been a decrease in CTR and  overall impressions?

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

Code postal impression and money loss

Visitor ✭ ✭ ✭
# 7
Visitor ✭ ✭ ✭

Hi @MosheTLV

 

Thanks for your reply, 

 

You suggest to check those metrics in witch zone? Global or in the postal code that is problematic?

 

It should be a drop in the competition rather than an increase that should explain this, in the postal code that got too much impressions. I mean, if the impression and clicks boost by a lot in a single area at the same moment that I reduce the budget beside this area, its very hard for me not to think those two events are not related..

Code postal impression and money loss

Top Contributor
# 8
Top Contributor

I have the "feeling" that the Geo targeting per postal code is too narrow to provide reliable data and I would consider switching to target by county or wide  radius to cover a broader area.

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

Code postal impression and money loss

Visitor ✭ ✭ ✭
# 9
Visitor ✭ ✭ ✭

Yeah, 

 

I've switched to radius targeting yesterday night.


I feel that I'm losing money and I don't want to wait to have more data to make a more informed decision right now. I might add postal code outside my target radius with lower bid adjustment to see of I can get more customers from those places.

 

Thanks for your help... 

Code postal impression and money loss

Visitor ✭ ✭ ✭
# 10
Visitor ✭ ✭ ✭

@MosheTLV

 

I pushed on my research and I found out that things changed the 23rd of november.

This day I changed some broad match keywords to exact match keywords and I increased my daily budget.

 

Before that, my impressions where mostly very close to my business. After this, the numbers of impressions started to rise by a lot in a postal code quite far away from my business, and a bad one for me.

 

I really wonder how this can be related, but I'M sure there is a cause to effect to this...