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Pay Per Click Advertising case studies showing what happened when Mediative tested an opt-out versus the traditional opt-in approach to geo-targeting in AdWords.
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SMX ADVANCED 2013GEO-TARGETING: OPT-IN VS. OPT-OUT STRATEGYAmazing Paid Search Tactics & Tools (#smx #23B)
June 11-12, 2013 Mediative.com
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WHO WE ARE
OUR SEARCH INSIGHTS OVER THE YEARS
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2011
Inside The Mind of The Searcher
Search Engine Usage Research
Google Golden Triangle
Major SERPs User Behaviour
Organic vs. Paid Brand Lift Study
Barriers On a Website
Mapping the BuyerSphere
Google Instant Results
Google Places Desktop & Mobile
PPC & Display User Purchase Behaviour
Branching Out From Search Research
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AMAZING PAID SEARCH TACTICS
TODAY’S TOPIC
What is the impact of opt-in geo-targeting?1What is the impact of opt-out geo-targeting?2
3 Which strategy opt-in vs. opt-out is more effective?
MARTA TUREKGroup ManagerPerformance Media
TODAY’S PRESENTER
GEO-TARGETING TO MAXIMIZE REACH
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
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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
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
OPT-IN: CITY VS. STATE-LEVEL TARGETING
DENVER CLICKS DIP IN OPT-IN CITY CAMPAIGN
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 250
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City - Denver
WEEKS
CLIC
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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
OPT-IN: CITY VS. STATE-LEVEL TARGETING
DENVER CLICKS DROP BY 57% OF WoW BASELINE
*Week 5 = Baseline, 100% (425 clicks per week)
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
0% 1%
-15%
-28%-26%
-35%-31%
-29%
-57% -57%
-47%
-3%-8% -10%
10%
1%
-15% -13% -12%-16%
-11%% Change on Week 5
Week 5 Baseline
WEEKS
CLIC
KS %
CHA
NGE
Immediate click rebound when Denver opted back in
to State targeting
8 Week Test Period
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 250
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City - Denver
WEEKS
IMPR
ESSI
ON
SOPT-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
OPT-IN: CITY VS. STATE-LEVEL TARGETING DENVER IMPRESSIONS DROP TO 21% BELOW BASELINE
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
2% 2% 1%
7%
-14%
-21%
0%
-10%
6%
-4%
11%
21%
40%
34%33%30%
23%
34%
12%
27%
% Change on Week 5
Week 5 Baseline
WEEKS
IMPR
ESSI
ON
S %
CHA
NGE
*Week 5 = Baseline, 100% (9300 Impressions per week)
8 Week Test Period
Immediate rebound in impressions after turning off test
OPT-IN: CITY VS. STATE-LEVEL TARGETING
AVG. CPCs INCREASE WHEN YOU LIMIT TARGETING
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 $-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
City - Denver
WEEKS
AVG.
CPC
Avg. CPC increased by $3.39 during test period
Advertisers willing to pay more for narrowly targeted audience
City Level Targeting Avg. CPC $11.13during 8 Week Test
Avg. CPC $7.74 after 8 Week Test
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OPT-IN: CITY VS. STATE-LEVEL TARGETING
SUMMARY CONCLUSION
Losing IP Coverage 20K Impressions lost in City campaigns (29% drop) 1Limited Audience = Increased CompetitionPay premium for clicks in market that is valuable to you2
3 When goal is to drive volume, in specific region, narrow opt-in strategy will result in loss of volume in target area
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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
*DMA = Nielsen Designated Market Area
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
OPT-OUT: DMA VS. STATE-LEVEL TARGETING
VOLUMES NOT COMPROMISED IN TARGET DMAs
36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 510
2000400060008000
100001200014000160001800020000
Charlotte NC
Greensboro-High Point-Winston Salem NC
Greenville-New Bern-Washington NC
Raleigh-Durham (Fayetteville) NC
Wilmington NC
IMPR
ESSI
ON
S
36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 510
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CLIC
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36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 $-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
COST
Non-Target DMAs excluded Volume metrics
are maintained in target DMAs
*Dip in week 47 owing to Thanksgiving week
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
36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 $-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
Charlotte NC
Greensboro-High Point-Winston Salem NC
Greenville-New Bern-Washington NC
Raleigh-Durham (Fayetteville) NC
Wilmington NC
WEEKS
AVG.
CPC
12% Drop in Avg. CPC
at campaign level
OPT-OUT: DMA VS. STATE-LEVEL TARGETING
EFFICIENCY 2: ABSOLUTE CONVERSIONS ARE UP
36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 510
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40
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Charlotte NC
Greensboro-High Point-Winston Salem NC
Greenville-New Bern-Wash-ington NC
Raleigh-Durham (Fayet-teville) NC
Wilmington NC
WEEKS
ABSO
LUTE
CO
NVE
RSIO
NS
Conversions 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
OPT-OUT: DMA VS. STATE-LEVEL TARGETING
EFFICIENCY 3: CONVERSION RATE INCREASES
*Comparing 8 Weeks prior to DMA change, to 8 weeks after
36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 510%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
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60%
Charlotte NC
Greensboro-High Point-Winston Salem NC
Greenville-New Bern-Washington NC
Raleigh-Durham (Fayet-teville) NC
Wilmington NC
WEEKS
CON
VERS
ION
RAT
E
Conversion Rate
improves by 8%
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OPT-OUT: DMA VS. STATE-LEVEL TARGETING
SUMMARY CONCLUSION
Through Opt-Out Geo-Targeting maximum IP coverage is maintained and undesirable areas simply excluded
1Drop in Avg. CPC in target DMAs
Hypothesis: Willingness to pay judged at overall market opt-in2
3 To maintain volume in specific region, instead of targeting explicitly, opt-out of non-target areas
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
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Over 300 Digital Marketing Resources Available
Visit www.mediative.com/resources
Marta [email protected] Twitter: @MTurek
THANK YOU! QUESTIONS?
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