How to Build Local PPC Campaigns That Really Deliver New Customers

Budget application

Whilst this strategy will produce the best ROI, for many local businesses the result of such targeting means you’ll only be able to reach a small number of people – driving only minimal impressions and therefore very little revenue.

Local businesses may therefore be looking to expand their reach even further.

The 2 most common approaches local advertisers take in expanding their reach are:

• Expanding the geo-targeting to include a broader area

• Adding more generic keywords without location modifiers

However, taking either of these approaches dilutes the relevancy of the campaign as there is now a much wider target audience. Strategic application of the budget becomes impossible.

To combat this, the table below outlines a simplified account strategy (for a single product/service, in a single area) that will suit the vast majority of local businesses.

Budget can be applied methodically using this set up. This strategy will ensure that those searches with the highest ROI are targeted first, ensuring that your budget is applied effectively.

See below for a real-life comparison between the aforementioned campaigns over 1 month, where, for one of their services, this particular local-trade client enjoys a cost-per-lead that is approximately 80% cheaper using Geo/Keyword Targeting vs Geo Targeting alone.

Impression share is able to be maximised for the first and second campaign, before applying any excess budget to the others. This delivers the best possible return for the local business’s budget – generating the highest number of leads at the lowest possible cost.

Advanced Location Targeting

The default location targeting option for any AdWords campaign is set to target those users who are not just in your location, but also searching for it. Whilst this works for some advertisers, particularly those in the travel industry, it will not be suitable for the majority of local businesses.

Navigating to Advanced Location Settings and changing it to “in my targeted location”, is the the better option. This will ensure you only show for the most relevant users in your geo-targeting campaigns.

Once more, if you’re suffering from low impressions and/or want to expand your reach, then you can either create those “searching for” and “showing interest in” their own campaigns, or allow this targeting into one of the lower priority campaigns.

Proximity targeting

For many local businesses, the closer a user is to your service, the more likely they are to convert. For others, proximity has almost no effect within the target area. Local businesses should reflect the nuances of their particular sector in their targeting.

The chart below compares the conversion rates of two local businesses. Client A represents a local private dentist, whereas Client B is a double-glazing firm.

For Client A, there is a direct link between distance and conversion rate. As the account is limited by budget, they can use gradient location bidding in order to bid higher for those users that are closer.

This can be set up by radius targeting around your business address at the incremental distance you choose (note: Google does not sum these bid increases together, it will choose the highest locational bid adjustment to apply).

Granular targeting

If your business operates more like Client B, there is still room for granular location targeting that will improve your ROI. Even within small towns, different areas can convert differently to others.

For businesses that wish to target customers across their region, be sure to follow these steps to optimise your account:

1. Review user location data in Analytics and find your best performing areas (for example, this might be a high average-income area)

2. Similarly, review your customer database or offline records. What zip codes are driving the majority of your customers? Where should your ads be targeting as a priority?

3. Use these insights and add bid adjustments where necessary. Ensure you’re targeting those crucial areas as a priority.

Additionally, if your business actively markets their products/services offline, it can pay dividends to synchronise your online activity with your offline. Sending out mailshots to a neighbouring town next week? Ensure you’re visible online in that area when they search for you by using bid adjustments.

(Note: In many cases, Google’s knowledge of IP locations is patchy at best. For some areas, broader location targets are better used to ensure capture of target traffic. Test the waters through trial and error; starting small and gradually expanding).

Review and improve

I’m sure that I don’t need to say that conversion tracking is essential for all online advertisers, especially local businesses. This means both the forms on your website, and call tracking too.

The advice in this article highlights the importance of a strategy that takes into account the intent of the audience you’re targeting. This likelihood of intent varies depending on the search terms they are using  and the location that they are in.

Larger local businesses that cover a wider area should target different areas in different campaigns, which will further allow a strategic application of budget, and make bid management much more efficient.

It is important to remember that the aforementioned advice applies to the vast majority of local business, though some will benefit from an alternative strategy.  Remember, you know your business best, and your strategy should reflect that.

Above all, pay-per-click advertising is unique in the vast quantity of data it accumulates very quickly. Consistently reviewing account performance, and the use of actionable data is the only route to AdWords success for a local business.