SMX ADVANCED 2013
GEO-TARGETING: OPT-IN VS. OPT-OUT STRATEGY
Amazing Paid Search Tactics & Tools (#smx #23B)
9 août 2013  Mediative.com
2
WHO WE ARE
OUR SEARCH INSIGHTS OVER THE YEARS
2004
2005
2006
2007
2008
2010
2009
2012
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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%
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
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
Over 300 Digital Marketing Resources Available
Visit www.mediative.com/resources
Marta Turek
marta.turek@mediative.com
Twitter: @MTurek
THANK YOU! QUESTIONS?

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SMX Advanced: Opt-out of Adwords GeoTargeting presented by Marta Turek

  • 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 WHO WE ARE OUR SEARCH INSIGHTS OVER THE YEARS 2004 2005 2006 2007 2008 2010 2009 2012 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
  • 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 Over 300 Digital Marketing Resources Available Visit www.mediative.com/resources Marta Turek [email protected] Twitter: @MTurek THANK YOU! QUESTIONS?