Google AdWords Geo-Targeting: Have We All Been Doing It Wrong? Search Engine Land reporter Ginny Marvin digs into recent case studies that tested opt-out vs. opt-in approaches to geo-targeting as an Adwords advertiser. Read the complete article here: http://searchengineland.com/adwords-geo-targeting-have-we-all-been-doing-it-wrong-169049

1. SMX ADVANCED 2013
GEO-TARGETING: OPT-IN VS. OPT-OUT STRATEGY
Amazing Paid Search Tactics & Tools (#smx #23B)
9 août 2013  Mediative.com

2. 2
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Behaviour
Branching Out From
Search Research

3. AMAZING PAID SEARCH TACTICS
TODAY’S TOPIC
What is the impact of opt-in geo-targeting?
3
1
What is the impact of opt-out geo-targeting?
2
3Which strategy opt-in vs. opt-out is more effective?
MARTA TUREK
Group Manager
Performance Media
TODAY’S PRESENTER
GEO-TARGETING TO MAXIMIZE REACH

4. AMAZING PAID SEARCH TACTICS
ADWORDS OPT-IN VS. OPT-OUT TARGETING
GEO-TARGETING
OPT-IN STRATEGY
GEO-TARGETING
OPT-OUT STRATEGY
VS.
TRADITIONAL APPROACH:
SELECT TARGET AREAS
NEW APPROACH:
EXCLUDE NON-TARGET AREAS

5. OPT-IN: CITY VS. STATE-LEVEL TARGETING
TEST 1: ADWORDS OPT-IN STRATEGY
Question: Will City (Denver) campaign drive as much
volume as captured in Denver by State targeting?
Goal: Drive clicks to Denver city for special promotion
Control: State Level Colorado Campaign
Test: Standalone City Level Denver Campaign
Geo-targeting: Opt-in to City (Denver)
Duration: 8 Weeks
5

6. OPT-IN: CITY VS. STATE-LEVEL TARGETING
TEST 1: OPT-IN GEO-TARGETING
CONTROL:
STATE LEVEL
TEST: CITY LEVEL
TARGET BY OPT-IN
DENVER TRAFFIC CAPTURED VIA
DENVER CITY TARGETED CAMPAIGN
DENVER TRAFFIC CAPTURED IN
STATE CAMPAIGN

7. OPT-IN: CITY VS. STATE-LEVEL TARGETING
DENVER CLICKS DIP IN OPT-IN CITY CAMPAIGN
0
100
200
300
400
500
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
CLICKS
WEEKS
City - Denver
City Level Targeting
2210 clicks
during 8 Week Test Period
975 fewer clicks in
Denver City campaign
Traffic Captured in Denver via State Campaign
3187 clicks
in 8 Weeks after Test

8. OPT-IN: CITY VS. STATE-LEVEL TARGETING
DENVER CLICKS DROP BY 57% OF WoW BASELINE
*Week 5 = Baseline, 100% (425 clicks per week)
0% 1%
-15%
-28%
-26%
-35%
-31%
-29%
-57% -57%
-47%
-3%
-8% -10%
10%
1%
-15%
-13%
-12%
-16%
-11%
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
CLICKS%CHANGE
WEEKS
% Change on
Week 5
Week 5 Baseline
Immediate click rebound
when Denver opted back in
to State targeting
8 Week Test Period

9. 0
2000
4000
6000
8000
10000
12000
14000
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
IMPRESSIONS
WEEKS
City - Denver
OPT-IN: CITY VS. STATE-LEVEL TARGETING
IMPRESSIONS DROP IN CITY CAMPAIGN
20,000 fewer impressions
at city level campaign
City Level Targeting
71,595 impressions
during 8 Week Test
Impressions Captured in Denver via State Campaign
95,482 impressions
in 8 Weeks after Test

10. OPT-IN: CITY VS. STATE-LEVEL TARGETING
DENVER IMPRESSIONS DROP TO 21% BELOW BASELINE
2% 2%
1%
7%
-14%
-21%
0%
-10%
6%
-4%
11%
21%
40%
34% 33%
30%
23%
34%
12%
27%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
IMPRESSIONS%CHANGE
WEEKS
% Change
on Week 5
Week 5
Baseline
*Week 5 = Baseline, 100% (9300 Impressions per week)
8 Week Test Period
Immediate rebound in impressions
after turning off test

11. OPT-IN: CITY VS. STATE-LEVEL TARGETING
AVG. CPCs INCREASE WHEN YOU LIMIT TARGETING
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
AVG.CPC
WEEKS
City - Denver
Avg. CPC increased by $3.39
during test period
Advertisers willing to pay more for
narrowly targeted audience
City Level Targeting
Avg. CPC $11.13
during 8 Week Test
Avg. CPC $7.74
after 8 Week Test

12. OPT-IN: CITY VS. STATE-LEVEL TARGETING
SUMMARY CONCLUSION
Losing IP Coverage
20K Impressions lost in City campaigns (29% drop)
1
2
1
Limited Audience = Increased Competition
Pay premium for clicks in market that is valuable to you2
3When goal is to drive volume, in specific region, narrow
opt-in strategy will result in loss of volume in target area

13. OPT-OUT: DMA VS. STATE-LEVEL TARGETING
TEST 2: ADWORDS OPT-OUT STRATEGY
Question: Based on Test 1 learning, how do we ensure
volume is not compromised?
Goal: Drive traffic to 2 target DMAs* only
Control: State Level North Carolina Campaign
Test: Two major DMAs in North Carolina
Geo-targeting: Opt-out of non-target DMAs
Duration: 8 Weeks
1
3
*DMA = Nielsen Designated Market Area

14. OPT-OUT: DMA VS. STATE-LEVEL TARGETING
TEST 2: OPT-OUT GEO-TARGETING
CONTROL:
STATE LEVEL
TEST: DMA REGION
TARGET BY OPT-OUT
DMAs CAPTURED BY EXCLUDING
NON-TARGET DMAs
DMAs CAPTURED IN STATE
CAMPAIGN

15. OPT-OUT: DMA VS. STATE-LEVEL TARGETING
VOLUMES NOT COMPROMISED IN TARGET DMAs
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
IMPRESSIONS
Charlotte NC
Greensboro-High
Point-Winston
Salem NC
Greenville-New
Bern-Washington
NC
Raleigh-Durham
(Fayetteville) NC
Wilmington NC
0
50
100
150
200
250
300
350
400
36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
CLICKS
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
COST
Non-Target DMAs excluded
Volume metrics
are maintained in target DMAs
*Dip in week 47 owing to Thanksgiving week

16. OPT-OUT: DMA VS. STATE-LEVEL TARGETING
EFFICIENCY 1: AVG. CPC DROPS IN TARGET DMAs
*Comparing 8 Weeks prior to DMA change, to 8 weeks after
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
AVG.CPC
WEEKS
Charlotte NC
Greensboro-High
Point-Winston
Salem NC
Greenville-New
Bern-Washington
NC
Raleigh-Durham
(Fayetteville) NC
Wilmington NC
12% Drop
in Avg. CPC
at campaign level

17. OPT-OUT: DMA VS. STATE-LEVEL TARGETING
EFFICIENCY 2: ABSOLUTE CONVERSIONS ARE UP
0
20
40
60
80
100
120
140
160
180
36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
ABSOLUTECONVERSIONS
WEEKS
Charlotte NC
Greensboro-High Point-
Winston Salem NC
Greenville-New Bern-
Washington NC
Raleigh-Durham
(Fayetteville) NC
Wilmington NCConversions up by 20%
(305) in target DMAs
*Dip in week 47 owing to
Thanksgiving week
*Comparing 8 Weeks prior to DMA change, to 8 weeks after

18. OPT-OUT: DMA VS. STATE-LEVEL TARGETING
EFFICIENCY 3: CONVERSION RATE INCREASES
*Comparing 8 Weeks prior to DMA change, to 8 weeks after
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
CONVERSIONRATE
WEEKS
Charlotte NC
Greensboro-High
Point-Winston Salem
NC
Greenville-New Bern-
Washington NC
Raleigh-Durham
(Fayetteville) NC
Wilmington NC
Conversion Rate
improves by 8%

19. OPT-OUT: DMA VS. STATE-LEVEL TARGETING
SUMMARY CONCLUSION
Through Opt-Out Geo-Targeting maximum IP coverage is
maintained and undesirable areas simply excluded
1
9
1
Drop in Avg. CPC in target DMAs
Hypothesis: Willingness to pay judged at overall market opt-in2
3To maintain volume in specific region, instead of targeting
explicitly, opt-out of non-target areas

20. WINNING TACTIC: OPT OUT STRATEGY
GEO-TARGETING
OPT-OUT STRATEGY
Run a geographic report to identify
target & non-target locations driving
clicks to campaign
Instead of isolating target area in
separate opt-in campaigns:
 Maintain high level targeting (whether
that is National / State / DMA)
 Select non-target areas as ‘negative
targeting’ to exclude these areas
In effect you are REVERSE-GEO
TARGETING to maintain volume

21. 21
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Marta Turek
marta.turek@mediative.com
Twitter: @MTurek
THANK YOU! QUESTIONS?