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Different CPC for same Keywords in Different Locations?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭



I'm considering a few improvements and one of the ideas I had was to change my target location from a city and break it down instead to zipcodes. At the moment I have generic city keywords for my campaign which is targeting a city. Just as an example, assume my target city is Chicago and my keyword phrase is Chicago Plumbers and this is set to a $10 CPC. 


Now imagine seperated my campaigns by targeting different zipcode locations instead. In zipcode 12345 I know I have more people/exposure and in zipcode 88888 I know there are less people/exposure. Would I be able to place a $15 CPC bid for the term Chicago Plumbers in zipcode 12345 and a $5 CPC bid in zipcode 88888?


I'm guessing that theoretically if my competitors are bidding on a city target location for the same term for a $10 CPC, I will probably beat them in the more attractive zipcode.


I'd like to hear your thoughts on this matter.


Thank you! 

1 Expert replyverified_user

Re: Different CPC for same Keywords in Different Locations?

Top Contributor
# 2
Top Contributor

Well.... CPC is a location dependent...That's a fact. There are many reasons for that: local competition; local culture; consumer behavior etc.... With the new keyword planner you can see CPCs per location.
This is the reason I like to set campaigns by Geo regions, and to tailor the landing page per location. I wouldn't "go" up to  to a zip code level for setting an initial CPC, but certainly use the  state / city CPC as an initial bid.

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Re: Different CPC for same Keywords in Different Locations?

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭
Hey Moshe,

I think I actually figured out how to get what I was asking...
In my target location I added all the zipcodes in the city I am targeting (instead of the city itself). After this I noticed I can adjust my bids (similar to the mobile/desktop bid adjustments) by target location, in my case zipcodes.

So a zipcode with lets say a population 100K will receive a +40% bid than a zipcode with a population of only 5K.