Search Marketing’s Geography Lesson
Isn’t it fun to find $10 on the ground? $20 in your pocket? Such unexpected money requires little or no effort from the one enriched – a clear case, in business speak, of ROI.
Utilizing geotargeting in a search marketing campaign can yield the same discovery of money in unexpected places. Although widely employed by marketers, they often use it solely to eliminate unwanted Web traffic and, in doing so, overlook its ability to determine where existing traffic originates, knowledge of which can provide an immediate boost to a struggling campaign or make a good campaign a stellar one.
When advertisers eliminate unwanted traffic, they cut off an entire market that could prove profitable. Much revenue can be earned outside the “bread and butter” countries, yet such opportunities remain largely untapped.
Tracking this unwanted traffic can sometimes yield surprising results. Many times a second campaign targeted to an “unwanted” country results in a lower CPA (Cost Per Acquisition) for the simple reason there is no competition. Advertisers are less likely to compete beyond the top-tier countries, leaving prime ad real estate for the taking.
As with any business venture, make sure a mechanism is in place to analyze ROI. Often times a publisher will employ country-tiered pricing; because the lower-tiered countries are exponentially cheaper, most advertisers will pay the rates without a second thought. A rate is cheaper for a reason, without the ability to conduct a country-specific ROI analysis; full gains in ad spend efficiency cannot be realized.
Geotargeting additionally allows for advertisers to determine the right way to allocate spending during campaigns. If spending caps are in place, advertisers can give priority allocation to the most profitable countries. If the caps are hit, simply move to the next profitable country, and so on. This informed allocation greatly boosts a campaign’s efficiency and increases ROI.
When used properly, geotargeting is a powerful tool that can provide new revenue streams in the most unexpected places. And hey, we could all use an extra $20 in our pockets, right?
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