AdWords is now Google Ads. Our new name reflects the full range of advertising options we offer across Search, Display, YouTube, and more. Learn more

Ads
1.9K members online now
1.9K members online now
Improve your Google Ads performance and boost your ROI, CTR, and Quality Score
Guide Me
star_border
Reply

Geo-location resolution with different Bid Adjustments in geographical hierarchy

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hello,

 

We are running campaigns using geo-targeting bid modifications, with different bid adjustments per different locations, through the whole range of locational hierarchy.

 

Let's take a look at the following example -

For zip-code 75201 in Dallas, we have a bid modifier of +10%.

For Dallas, we have a bid modifier of +30%.

For Texas, we have a bid modifier of -30%.

And for the US, we have a bid modifier of -15%.

 

Now, let's say that an ad-words user was identified properly as originating from zip code 75201.

In this case, +10% will be applied.

In the case the same exact user wasn't identified from 75201 but was identified from Dallas, +30% will be applied, according to the geographical hierarchy and the defined bid adjustments.

And so on, up to the country level.

 

As for the question itself -

Let's say Google identifies a user from another zip code in Dallas, say 75202 - but we don't have bid adjustments defined for 75202.

The next hierarchy is, obviously, the city of Dallas.

 

Will the Dallas bid adjustment of +30% be applied, or will the Dallas hierarchy level be skipped, and the Texas state bid adjustment of -30% be applied?

 

The hierarchy of zip codes versus proper or improper containment within city limits as a higher level hierarchy, is not always clear to me.

I've seen cases where zip codes are not really "hierarchical offsprings" of cities, but rather directly attached to the state level.

 

Thanks for your help,

Igor

 

1 ACCEPTED SOLUTION

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by topic author Igor V
March 2017

Geo-location resolution with different Bid Adjustments in geographical hierarchy

Badged Google Partner
# 2
Badged Google Partner

Hey Igor,

 

if it will be location or another zip code from Dallas then +30 % bid adjustment will still be applied.

 

In your zip code location +10 % bid ajdustment will be applied.

 

Everywhere else outside Dallas in the state of Texas,  it's -30 % bid adjustment.

 

Location bid adjustments won't combine! Only the most specific location's bid adjustment will be used.

 

Tomáš

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author Igor V
March 2017

Geo-location resolution with different Bid Adjustments in geographical hierarchy

Badged Google Partner
# 2
Badged Google Partner

Hey Igor,

 

if it will be location or another zip code from Dallas then +30 % bid adjustment will still be applied.

 

In your zip code location +10 % bid ajdustment will be applied.

 

Everywhere else outside Dallas in the state of Texas,  it's -30 % bid adjustment.

 

Location bid adjustments won't combine! Only the most specific location's bid adjustment will be used.

 

Tomáš

Geo-location resolution with different Bid Adjustments in geographical hierarchy

Badged Google Partner
# 3
Badged Google Partner

Where exactly is the end user located in the 75202 zip code? If the zip code area is not exclusively within the city of Dallas, and Google can correctly identify the exact physical location (which is not likely), then wherever that user is physically located will determine the bid adjustment. 

 

+30% if they are within the Dallas city limits, -30% if they are on the other side of the street of the city limit.

 

Location targeting isn't perfect, and if you get too particular with your adjustments you can end up doing yourself more harm than good. If you are targeting the entire country, then it doesn't really make sense to bid less for Texas than you do for the rest of the US, and yet be so rigid about your local targeting... What is the goal you are trying to accomplish?

Tom

Re: Geo-location resolution with different Bid Adjustments in geographical hierarchy

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭

Tom,

 

Our bid adjustments rely on the proper attribution of geographical hierarchy, i.e. zip codes will generally be within cities, which will generally be within states, etc.

The example I've given has more extreme bid modification percentages than in real life, for the purpose of making the question clearer.

 

I just wanted to verify that indeed our basic assumption holds, by hearing about similar experiences from other people - because there were a few cases in which we have seen/suspected fall-backs from zip codes to state levels. I believe now, with your help, that these happen when zip codes span across more than one city, and perhaps no modifiers were defined for the other city under which it was identified, so a state modifier was taken into account as the next level in the hierarchy; or maybe the person was physically located in the "proper" zip code, but no proper identification of a zip code and neither of a city was made (only of a state).

 

In any case, I'm a little calmer now, knowing that the mechanism we rely on, is supposed to be working as we expect it to.

 

Thanks again,

Igor

 

 

Re: Geo-location resolution with different Bid Adjustments in geographical hierarchy

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭

Thank you both, Tom and Tomáš - I'm new to this forum, and have just learned that I can only mark one answer as the accepted solution, but would actually prefer to mark both of them.