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Location Targeting: The Benefits Of Thoughtful Segmentation By Kevin Fleming Jr

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From the SMX East Conference in New York City, September 27-29, 2016. SESSION: Location Targeting: The Benefits Of Thoughtful Segmentation. PRESENTATION: Location Targeting: The Benefits Of Thoughtful Segmentation - Given by Kevin Fleming - Red Ventures, Paid Search Associate. #SMX #31B3

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Location Targeting: The Benefits Of Thoughtful Segmentation By Kevin Fleming Jr

  1. 1. #SMX #31B3 @KevinFlemingJr Location Targeting The Benefits of Thoughtful Segmentation
  2. 2. #SMX #31B3 @KevinFlemingJr Started in marketing analytics before moving to search Managed accounts within telecommunications and insurance industries University of Virginia graduate KEVIN FLEMING Digital Marketing Associate @kevinflemingjr
  3. 3. #SMX #31B3 @KevinFlemingJr Founded in 2000, now has 3,000+ employees, voted among Charlotte’s best places to work for 8 years running Technology-enabled platform for launching and growing sales & marketing businesses Partnered with large corporations across telecommunications, finance, insurance, energy, and other industries
  4. 4. #SMX #31B3 @KevinFlemingJr Location Targeting: Overview Data Trends and Settings Driving Performance AGENDA
  5. 5. #SMX #31B3 @KevinFlemingJr o  Right audience + right messaging = Better ROI o  Geographic performance differences impact your bottom line o  Competition, product preference, conversion rates, etc. o  Harness the power of locations by optimizing their treatment IN REAL ESTATE AND PPC: Location! Location! Location! Location Targeting: Overview
  6. 6. #SMX #31B3 @KevinFlemingJr HARNESS THE POWER OF LOCATIONS Location Targeting: Overview Not so good..Good!
  7. 7. #SMX #31B3 @KevinFlemingJr PICKING THE RIGHT LEVEL Country State / Region DMA / County City Zip Code Radius / Other BITE OFF WHAT YOU CAN CHEW! Location Targeting: Overview “Group geographies with similar characteristics together to help find the right balance of customization vs. simplicity #locationprotip”
  8. 8. #SMX #31B3 @KevinFlemingJr o  Insurance company writing policies in a limited number of states o  Treat large metropolitan areas differently for better results o  Ecommerce retailer selling luxury items o  University locations may not be strong converters BEYOND BASIC ACCOUNT STRUCTURE Location Targeting: Overview “Set up your geographic structure to drive towards your KPIs and be ready to test and evolve it #locationprotip”
  9. 9. #SMX #31B3 @KevinFlemingJr Data Trends and Settings
  10. 10. #SMX #31B3 @KevinFlemingJr 54% 61% 72% 50% 55% 60% 65% 70% 75% 2014 2015 1st Half 2016 Level of Most Specific User Location: Google 2014-2016 Zip Code *A pool of 330MM impressions over a period of 2.5 years from clients advertising across the country MOST SPECIFIC LOCATION - GOOGLE Data Trends and Settings “Google can track over 70% of impressions to the zip code level, a 33% improvement since 2014 #locationprotip”
  11. 11. #SMX #31B3 @KevinFlemingJr 3.2% 4.7% 4.4% 21.9% 65.8% 0.3% 0.4% 2.5% 18.8% 78.1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Country State County/DMA/Other City Zip Code Geo Level of Most Specific Location by Device Mobile Desktop *2016 YTD pulled from a pool of 50MM Impressions from the same dataset LOCATION TRACKING BY DEVICE Data Trends and Settings “On mobile devices, ~8% of impressions may only be tracked to the state or country level #locationprotip”
  12. 12. #SMX #31B3 @KevinFlemingJr UnitedStatesAll50States Data Trends and Settings
  13. 13. #SMX #31B3 @KevinFlemingJr UNSPECIFIED CAMPAIGNS Target United States Negative all the states Gauge “unspecified” performance Optimize treatment Data Trends and Settings “Set up unspecified campaigns to avoid missing out on potential impressions #locationprotip #nomorelostimpressions”
  14. 14. #SMX #31B3 @KevinFlemingJr o  People in, searching for, or who show interest in your targeted location o  (Google and Bing recommended) o  People in your targeted location o  People searching for, or who show interest in your targeted location ADVANCED LOCATION OPTIONS Data Trends and Settings
  15. 15. #SMX #31B3 @KevinFlemingJr *Based on 500k impressions in campaigns targeted at the Nashville DMA in 2016 HOW CAN THIS SETTING IMPACT PERFORMANCE? Area % Impressions % Clicks % Cost TN + KY 92.3% 96.2% 95.6% Outside of Either State 7.7% 3.8% 4.4% CTR -51% CPC +17% 4.4% Of total spend Performance outside of TN + KY Data Trends and Settings “Over 4% of your spend could be wasted on searches outside your target locations #locationprotip”
  16. 16. #SMX #31B3 @KevinFlemingJr Telecommunications Partner People Searching for or Interested In ADVANCED LOCATION OPTIONS: TEST CTR -7% CPC +5% Conversion Rate -24% CPA +38% Data Trends and Settings Delta vs. Physical Location o  Split out campaigns into physical location only and location of interest only
  17. 17. #SMX #31B3 @KevinFlemingJr Driving Performance How to leverage geographic differences to optimize your account
  18. 18. #SMX #31B3 @KevinFlemingJr NON-BRAND BIDDING BY GEO CONVERSION RATES o  Substantial gains possible even without sophisticated technology or third party tools o  Geographic bid multipliers based on conversion rates by city o  Hold spend level by keeping average auction bid the same +20% Click Conversion -24% CPA Driving Performance “Location bid modifiers can drive conversion lifts and boost revenue without increasing spend #locationprotip #modificent”
  19. 19. #SMX #31B3 @KevinFlemingJr AD MESSAGING CUSTOMIZATION BY GEO +6% Visit Conversion +5% CTR NYC Skyline Landing Page +17% Revenue Driving Performance “Customize ad copy, extensions, and landing pages within a geography to drive meaningful lifts #locationprotip #geomizeit”
  20. 20. #SMX #31B3 @KevinFlemingJr GEOGRAPHIC PRODUCT PREFERENCE o  Higher % of customers buying lower value internet only product in California o  Focused both ad copy and landing page on internet only o  Previously advertising higher value TV-included packages +4.5% CTR +20% Click conversion +15% ROAS Driving Performance “Look at your data to understand customer intent by geography and tailor your messaging towards those preferences #locationprotip”
  21. 21. #SMX #31B3 @KevinFlemingJr LEVERAGING EXTERNAL DATASETS o  Use other channels and datasets to help create geographic segments o  Paid Social, Google’s Household Income, Census, Demographics, Client Data, etc. o  Split out potential high value geographic segments o  Measure performance o  Target with right offer/product Control Geographic Segment High Value Geo Segment +40% CTR lift +36% Revenue lift +33% Conversions per impression High Value Geo Segment + Tailored Offer +26% CTR lift +17% Revenue lift +21% Conversions per impression Driving Performance “Leverage demographic data to find high value geographic segments and then test out custom treatment #locationprotip”
  22. 22. #SMX #31B3 @KevinFlemingJr Connect with the right audience by carefully choosing your geographic structure KEY TAKEAWAYS Bid differently based on geographic performance Set up unspecified campaigns and test your advanced location options Tailor ad copy, extensions and landing page by location
  23. 23. #SMX #31B3 @KevinFlemingJr Thank You! kfleming@redventures.com