The next in our series of blogs outlining the changes between Legacy and Enhanced campaigns is the introduction of Location bid multipliers. This now allows bids to be adjusted in three ways; 1) Location, 2) Mobile Device (see previous blog) & 3) Ad Scheduling.
Previously with Legacy campaigns the only location function available was to set geo targeting for the locations you wanted to target or wanted to exclude. Now with the introduction of Enhanced campaigns as well as still being able to this you are now able to increase and decrease bids for specific locations.
This development is one of great potential, especially for companies with a localised client base such as a restaurants, car garages & locksmiths. Even companies who are more national can benefit from this because if they may have stores in specific locations or generate more online sales from certain locations bids can be adjusted accordingly to suit this.
As the image below shows bids can be adjusted for cities, towns, counties or for a radius around a postcode but a default bid can still be left for all other locations.
The benefits of location bidding are that if you have a fixed business location bids can be increased close to this location. For example a storage company which has storage warehouses in specific locations can have bids increased for users who are searching for storage space from location within a certain radius of the warehouse. This would be of a benefit to the company because it is likely users will want to store their property somewhere close to where they are currently living, so by increasing the bid for these users it is likely an advert will be displayed in a higher position.
Looking at mobile, if tourists are visiting a city and search for say an Italian Restaurant if bids have been increased for searches made within a specific radius then based on the users mobile signal bids will be increased for these users.
As well as increasing bids to capture more users bids can be decreased if you wish to reduce exposure in certain locations. If a certain location has been harming overall performance for example with a low CTR or a high CPC then it would be worthwhile reducing the bid for this location.
You can review the locations where your users were when they conducted their search by looking at the location details within adwords as shown below.
From the data shown this decisions can be made on which locations to add a bid multiplier for whether this be an increase or a decrease.
Knowing where your customers can now become a real key factor in establishing an effective bidding strategy for your adwords account.