Location-Based Marketing

As some of you may know, I’m currently participating in the Google Online Marketing Challenge. If you’re not aware of what that is, it’s a competition where a small team (3 – 6 people) work with a small business to create search advertisements on Google (and related sites) using AdWords.

One of the great things about marketing is that when it comes down to your target audience you can be specific and target particular groups of people. Whether it’s age, gender, education level or income etc, there are lots to choose from when it comes to the consumer’s demographics.

Although demographics are good to think about and target, have you ever thought about where those consumers are from? Do they share a similar location? Are they all coming from the same suburb? Now, I’m not looking at just countries of consumers. I’m talking about a more specific location. Right down to the post code and suburb of consumers.

I mentioned the Google Online Marketing Challenge because when using AdWords, there’s an option called “Location Targeting“. What this means is, you can choose where your ads will appear depending on the location of where it has been searched.

Screenshot (275).png

Image Source

Now, don’t ask me “How does Google know where I am” or “How does it appear and not appear depending on my location” or “Will the ads appear and then not appear if I jump in and out of the location radius”. Look, I don’t know the technical details but I know why it’s a marketing tactic that can be useful.

Let me give you an example so that it makes more sense. The small business my team and I are working with is called “Company A”. When looking at Facebook metrics and data, we discovered that Company A had a lot of consumers searching their Facebook page in Fitzroy, Collingwood and Northcote.

Now, let’s say that Company A wanted to boost brand awareness to consumers living in these locations and create advertisements that would help improve foot traffic in store. What you can do, by using AdWords, is choose specific locations so that ads will only show in those places. That is, you can choose to have ads show in Fitzroy, Collingwood and Northcote only. Therefore, the advertisements will only show if consumers search particular keywords within these suburbs. How cool is that?

Screenshot (272)

Image Source

Now, here’s another example. Say that, Company A knows that Fitzroy, Collingwood and Northcote are where most of their customers are coming from but want to boost awareness to other suburbs near these suburbs too. What you can do (using AdWords) is choose where your ads show within a radius. That is, you can choose how wide of a radius from a particular location – 10km+ Fitzroy or 20k+ Fitzroy. Through this, you can also exclude particular suburbs that fall within the radius you’ve set. This way, your ads will show to only places you want them to and not to irrelevant locations.

Screenshot (273)

Screenshot (276)

 

Image Source

Hopefully my post so far has demonstrated how location target marketing can be useful. However if you’re still confused… How can location-target marketing help marketers engage with consumers?

  • Demographics can be difficult to figure out

It can be difficult for some businesses to target particular demographics if they don’t have the right resources to understand who they want to target. For example, if Company A wanted to target specifically young men who like buying ethically made clothing, it can be difficult to just target those consumers using search advertisements. With location targeting, it makes things a bit easier because you can observe where these type of consumers are from thus show your advertisements based on where they are.

  • Delivering targeted messages

When using location targeted marketing, Company A can deliver messages to those around the area (whether or not they are part of their target market) and thus boost their brand awareness. By having a broader area to target, Company A can offer insightful messages about their brand across all demographics instead of just one.

  • Two birds, one stone

Say Company A discovered that consumers were looking at their website on mobile devices in Fitzroy. By using location targeting (with AdWords), Company A can make sure their advertisements are mobile optimised and target Fitzroy so that the consumers searching for keywords related to Company A’s brand can see their ads. It’s a two birds, one stone kind of thing.

I hope this has given an insight into why location targeted marketing can be useful!

Until next time, leave a comment below and give this post a like!

Advertisements

Paid Search Advertising – PPC

This semester, I have taken the liberty of participating in the Google Online Marketing Challenge. It has been a roller coaster of fun, stress and learning. It’s been very informative of how ads work on Google, what the benefits of them are, and how great they can be for small businesses.

So, what is Paid Search Advertising (PPC)?

  • Advertising on search engine results page
  • Triggered by user when they enter a related keyword phrase
  • You, as a business, select and target relevant keywords to your business
  • Ads displayed when customers have searched up those relevant keywords
  • PPC – pay per click – Advertisers only pay when users click on their ads
  • Increase of paid ads being used by companies

Position in PPC

Highest bid – what is a bid? How does a bid work?

There are 3 types of bidding strategies that your business can choose from. They determine how you want your ads to be used. This is determined by the goals you have planned for the ads.

  • Cost-per-click (CPC) bidding: use if you want to drive customers to your website. This is great if you want to push new consumers to your website as much as possible.
  • Cost-per-impression (CPM) bidding: use if you want to make sure that customers see your message. This is perfect if you want to increase brand awareness of your brand and website.
  • Cost-per-acquisition (CPA) bidding: use if you want to maximise conversions on your website. This is great if you want your website to make the most sales,

Quality score – What is this?

Now, it doesn’t matter how much you bid. You could bid $5 for your keyword and/or ad and someone who has bid $1 could win the auction. How and why? It all comes down to quality score, which effects ad rank. Quality score is an estimate of the quality of your ads and landing pages triggered by that keyword in auctions throughout the day. The components that make up Quality Score are (1) click-through rate, (2) ad relevance, and (3) landing page experience. Every keyword you have will be scaled from 1 to 10, 1 being the lowest and 10 being the highest.

Why should I care about Quality Score? My ads will still show on search engine results page regardless of my Quality Score.

You should care about your quality score because it effects your ad rank. Ad Rank refers to the order in which your ad will show up on a search engine results page (also known as ad position). The better your quality score is, the more likely your ad will show up at the top of the search engine page, rather than at the bottom or the side.

Click-through rates – what does this mean? And how does it benefit you (as a company)?

Click through rates (CTR) compares how many times your ad was clicked to how many times your ad was shown. As mentioned before, CTR is a component of Quality Score. It will look at the history of keywords matched with landing pages. Notice how keywords and landing pages come up again?

Relevance of keyword to your landing pages & ads – Keyword Planner

Keywords are important when using PPC advertising because they’re what consumers search on any search engine. It can be hard to figure what keywords would be most relevant for your ads. Luckily, Google AdWords has a tool called Keyword Planner which helps your get ideas, related keywords and search information. It can also provide historical statistics and traffic estimates of each keyword.

Are you thinking about using paid search advertising? Here are some pros and cons to help you decide!

Pros of PPC

  • You don’t have to pay until someone clicks on your ad
  • Highly targeted and specific
  • Easy to measure and account for
  • Technically easier than SEO
  • Return on Investment comes from how many conversions you make

Cons of PPC

  • Competitive and expensive
  • Inappropriate, particularly for companies focusing on lifetime value of customers
  • Requires specialist knowledge of AdWords
  • Time consuming
  • Can be irrelevant to consumers

Until next time, click this post to leave a comment and give this post a like

P.S. Sadly, no memes this week but I promise more memes in the next week!