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How Cost-Effective is Your PPC Location Targeting?

How Cost-Effective is Your PPC Location Targeting?

When it comes to an AdWords account, geographic location targeting can drastically affect how your ads perform.

Targeting the wrong places or not monitoring the current targeting settings may drive up your PPC costs or provide insufficient click traffic.

Here are some tips and tools to optimize your location targeting for the best results in your automotive SEM campaign


Potential Search Volume & Impression Share

How many searches will take place in your target area? To find out, use the Keyword Planner to plan how many potential searches take place each month for your chosen keywords. This also allows you to tailor your keywords to each location to find which are most popular.

After your account is running, you can use the impression share percentage to know how many people your ads are reaching versus how many they are able to reach.

The impression share is calculated by dividing how much of the market your ads reached by the potential market. For example, if you get 70 impressions in a week, and there were 100 searches involving the keywords you bid on, your impression share would be 70%.

When the location targeting is adjusted, the impression share will adjust accordingly, since the potential market size has changed. Monitor this metric if you change your location targeting to know the potential market you’re currently reaching.

The search volume and impression share are both tools that will forecast and report how many people your ads reach in the specific locations being targeted.


Distance from Your Store Location

Location targeting is useful for gathering new customers who might not drive by your store location. If there is a low amount of competition in a targeted area, customers may be more likely to travel farther for tires and auto service.

To determine a good distance from your store to target: think in the shoes of your customer. Would you travel an hour for auto service? Odds are, your customers won’t either.

Choose a radius or group of zip codes that are near enough, so your clicks won’t be wasted on users who are unlikely to become customers.



When adding or reviewing current locations in a campaign, it’s also important to keep competition in mind. Do you share target locations and keywords with others, and is it driving up your average cost per click?

Using the Auction Insights report will help you see what competitors are in your target locations. Like search impression share, these can change with what areas you target.

Monitor this report to see who is bidding on the same keywords in your area and what percentage they out-bid you or rank higher than your ads. This practice can help you maintain a cost-effective campaign to know when you’re spending too much or too little for keyword bids.


 Putting It All Together

In general, location targeting matters on what customers you want to reach and how much you’re willing to invest in their clicks.

Choose a target location that puts your store location within reach of potential clients. Then, monitor your results with the keyword planner, search impression share, and auction insights metrics.

By actively monitoring your target location you will be able to drive leads for your business in a budget-friendly way.

Need help optimizing your building your SEM campaigns? Learn more about TurboClick, our exclusive paid advertising solution for automotive businesses

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Categories: Internet Marketing

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