How Geo-Targeting Can Boost Paid Search Ad Performance

search marketing
Oct
02
2015

Ads that are targeted to consumers based on their locations can be a highly effective method of marketing to mobile users. Consumers who share their location benefit from ads that are more relevant to them and therefore more likely to be of interest, while advertisers are able to focus their attention more precisely on their target audience.

According to a 2013 report from Verve Mobile, geo-targeted mobile ads perform twice as well as the average non-targeted ad campaign, although the exact performance can vary depending on exactly how the advertising campaign is implemented. Geo-aware campaigns, which display different content to visitors depending on where they are connecting from, deliver an average click-through rate of one percent, compared to the industry average of just 0.4 percent.

This can be extremely useful if you are targeting consumers in nations with different languages or currencies, or if your product offering varies from location to location.

How to Use Geo-Aware Advertising Campaigns

Geo-aware advertising campaigns allow you to offer exclusive discounts to users in a particular area, which could help persuade them to engage with your business. For example, if your business has several brick-and-mortar stores, you can offer consumers in each area coupons that they can use at their local outlet. You can also adjust your advertisements based on the season, weather and local events taking place in each location you target.

Cost Benefits of Geo-Fencing

Geo-fencing is another useful way of boosting paid search ad performance. Rather than showing your ads to everyone who searches for a particular term, you can restrict your ads to only those consumers who are physically close to your business. This can improve click-through rate and further engagement by cutting out those consumers who are unlikely to be interested in your business because their nearest outlet is simply too far away. In this way, geo-targeting allows you to waste less of your marketing budget on uninterested consumers and therefore gain a greater return on the investment that you make.

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