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If you’re spending on AdWords (or other online ads) then you’re probably paying close attention to conversion rates.

Doing so is understandable but flawed. And it may be hurting you and also Google.

At risk of oversimplifying how conversion tracking works, a person clicks on your ad, a cookie is placed in their browser, and when they buy your product, this registers as a conversion. Voilà.

The problem lies in disconnects – anything that breaks that beautiful chain.

Some examples:

- A person clicks on your ad, but someone else on a different computer pays for your product.

- A person clicks on your ad but doesn’t buy until the cookie has died.

- A person clicks on your ad on their phone, but purchases your product from their desktop computer.

The first scenario can be a big problem if you selling primarily to businesses.

The third scenario can be an even bigger problem for almost everyone.

The obvious reason for this is the growth in the number of multi-device users. A few nights ago I searched for a product on my phone, then bought it the next day from my desktop PC.

What this means is that the gap between the number of actual and recorded conversions is almost certain to widen with each passing month.

For Google this could be disastrous. AdWords customers might see that the number of reported conversions and even recorded sales in their account is slowly declining over time. Yet the actual conversions and conversions value could be increasing.

Google will of course already be aware of this problem, and the enormity of the threat it poses can’t be understated. But it’s not just Google’s problem; it’s yours too.

If, for example, you see that your AdWords ad spend remains the same but the number of conversions steadily declines, wouldn’t you be tempted to reduce your budgets?

My prediction is that this year will see Google rename AdWords conversions to something suitably vague and noncommittal like “recorded conversions” or even “conversion indicators“.

As it stands I suspect they’re caught between providing false information that can hurt both parties, and appearing to take data away from their customers.

Over to Google.

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AdWords conversion tracking is dead. No, Google haven’t removed it from AdWords, nor are they phasing it out. Yet.

But if you’re using conversion tracking as your sole gauge of success, you’re doing it wrong!

Why? Because AdWords conversion tracking is a highly inaccurate indicator; but not a reliable metric.

The entire system is based on a cookie, and that cookie might not be present at the time of the conversion. A missing cookie does not mean the conversion was not a direct result of your AdWords efforts. It just means the cookie was not found at the time of the conversion and there are many reasons why this might happen. Someone deleted it, a different device was used, a different user was involved, someone ate the cookie (just kidding) and so on.

Even if you’re able to see some recorded conversions, you can’t accurately use that data. It’s impossible to say how representative the data truly is. Were you able to track 100% or 10% of your AdWords conversions?

No one wants to waste money on AdWords. It is however important to understand the limitations of the current tracking system.

Ask yourself: what can we track?

We all want to know if visitors are arriving on our websites and purchasing our products and services, however we just can’t see this with any level of accuracy.

What we can see is if visitors were engaged with our site. In most situations, someone who arrives and is not interested won’t venture any further. They will leave the website. With AdWords, we want to reduce the number of visitors who aren’t interested and increase those who are.

This can be accomplished by combining the following three systems: Google Tag Manager, Google Analytics and AdWords conversion tracking

How to set up page engagement tracking:

This tutorial will assume that you have already set up the Google Tag Manager across your entire website. For instructions, please visit the Google Tag Manager website.

I like the Google Tag Manager because it makes my life easier. You add a small bit of code to your website much like you do with Google Analytics. Then the Google Tag Manager will dynamically inject tracking codes into your site based on the conditions that you set. With the Google Tag Manager, you no longer need to tag all your pages with AdWords, Analytics or third party tracking codes. You simply log into a web interface and configure your tracking tags as you see fit.

Step 1: Set up a new type of conversion from within Google AdWords.

Page engagement tracking step 1

I would recommend that you set the count to “unique conversions” because the initial page engagement is most important; not all subsequent page engagements.

The conversion window should also be set to “1 week” because page engagement is about that initial visit to the site just after the ad click.

Complete the conversion set up process and save the actual code that Google generate within a text file. You’ll need to reference some of the values in a later step.

Step 2: Listen for page engagement with the Google Tag Manager.

With the Google Tag Manager, you can set up event listeners that can be used to trigger this new page engagement conversion. Currently, the Google Tag Manager offers 6 different event listeners:

  • Click Listener
  • Form Submit Listener
  • Link Click Listener
  • Timer Listener
  • History Listener
  • JavaScript Error Listener

For this tutorial, I am only going to configure page engagement tracking on the Link Click Listener, however other types of events could be used for triggering page engagement conversions as well.

Set up a new tag within the Google Tag Manager called “Link Click Listener”:

Page engagement tracking step 2

The Link Click Listener tag will trigger an event each time a link is clicked.

Step 3: Set up a page engagement rule specific for AdWords traffic:

Page engagement tracking step 3

I only want to track page engagement if the visitor arrived from an AdWords ad and then clicked on a link within the landing page. To accomplish this, I need to create a rule.

The first part of the rule identifies whether or not the user is from AdWords by the gclid= parameter. This parameter is present when using AdWords auto-tagging. By default, most AdWords accounts have it enabled. You can easily be confirm this by following the instructions on this page.

The second part of the rule determines if the event was a link click. Please note the text case within “gtm.linkClick”. It’s important.

Step 4: This is where you tie everything together. Setting up the actual AdWords page engagement tag:

Page engagement-tracking step 4

When setting up this particular tag, you will need to reference the conversion code that Google generated in step 1. In it, you’ll need to pull out the Conversion ID and the Conversion Label and then enter them into this tag.

You then need to select the firing rule for this tag which is the rule you set up in step 3.

I also added a zero for the conversion value because I don’t want these types of conversions to interfere with any possible sales conversion tracking that I may have set up.

Step 5: You must test!

Testing to see if this works could not be easier. From within the Google Tag Manager interface, Google provide an easy to use debugging system. By clicking on the Preview button, you’ll be able to debug what you just configured without actually making it live on your website.

I highly recommend that you test this within each of the major web browsers – Chrome, Firefox and Internet Explorer.

Step 6: Last but not least, you need to make it live.

Once you have thoroughly tested your new page engagement tracking system, press the Publish button to make it live.

Welcome to conversion tracking in 2014.

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Most AdWords accounts use some form of conversion tracking as a metric of success, yet this model is flawed to the point of being meaningless.

I’m not going to go into the specifics of why there may be a disconnect between the ad click and the conversion here, but if you want details read Tracking your AdWords return on investment.

I will, however, show an example that illustrates why conversion tracking is meaningless.

The story of Misguided.

We’ll consider the case of Misguided, a company who sell an online solution for tracking productivity. They’ve been using AdWords for many years, and consider it an important part of their overall marketing strategy. Their AdWords account is managed by an inept ad agency, who’ve assigned Fritter to handle their work.

When Fritter began managing their AdWords, he setup conversion tracking to record anyone who creates an account as a conversion.

So a person searches for a productivity solution, clicks on Misguided’s ad, and has a cookie dropped on their system. Assuming they like what they see, they then open an account and, this is recorded as a conversion.

One of their main campaigns (main #1) rather conveniently receives a round 100 conversions a week.

Fritter thinks he’s quite the AdWords expert, and thanks to reading Tracking your AdWords return on investment, knows that 100 conversions a week won’t be all the conversions, but he uses this data as a useful metric.

So if rc is recorded conversions, nc is non-recorded conversions, and ac is actual conversions:

rc + nc = ac

Fritter hasn’t quite understood the implications of this though, and doesn’t understand that nc may actually be more significant than rc. This is a fundamental mistake on his part.

In the main #1 campaign, for example, even though Fritter has no way of knowing this, there are twice as many non-recorded conversions as there are recorded.

In other words:

100 recorded conversions + 200 non-recorded conversions = 300 actual conversions.

Fritter has been trying to optimise this campaign, and in doing so has disabled a large number of countries that were generating a lot of clicks but absolutely no sales. The result of that is that the campaign is now spending more of its budget in the United States.

One of the implications of this is that there are now a greater proportion of searchers using mobile devices and tablets. As a direct consequence, the number of disconnects in the conversion tracking process has increased.

This results in AdWords reporting 75 recorded conversions a week, instead of the previous 100.

Making a big mistake.

However what Fritter can’t see is that although there are less recorded conversions, there are more non-recorded conversions than before:

75 recorded conversions + 275 non-recorded conversions = 350 actual conversions.

Again, Fritter can’t see this. So what does he do? He forgets the significance of the non-recorded conversions, is swayed by the apparent decline in conversions, and cuts the budget to that campaign.

Fritter can’t know that he’s cutting the budget to the most profitable campaign in the account, mainly because he’s being deceived by the perception of accuracy.

In a sense, you could argue that Google make the misinterpretation easy. The screenshot below shows a total of 11 performance-related metrics. Five of them (highlighted in red) are as good as meaningless.

Misleading conversion data

I’m not suggesting that you pay no attention to reported conversions, as under certain circumstances this information can be quite useful.

But don’t rely on it, and don’t use it as the basis of making decisions on running the account.

The obvious question now is what should you use to determine the success of your AdWords account. The next post will deal with that issue, and give you all the answers you need to make meaningful and accurate decisions.

For now:

Don’t Fritter your account budget with Misguided goals. (Sorry, I couldn’t resist that.)

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The era of being able to accurately track your online marketing efforts is over. Or more accurately: the era of thinking you could accurately track your online marketing is over.

Only a few years ago, we thought we could track almost every single keyword that was used to find our websites. The reality was that we could track the keywords that were used to click on our websites in the search engine results. If we’d have left it at that, the difference would have been minor, but we didn’t.

Once we could track our keywords, we then wanted to link them to conversions. We wanted to know which keywords resulted in the greatest number of enquiries, signups and sales, and why not? The information was there. Except it wasn’t.

A few years ago we worked with a company who were spending a great deal of money on their AdWords ads. Initially they were confident that the ads were sending targeted visitors to their website, but with time they became accustomed to the smörgåsbord of data that was there for the taking, and started trying to track their ROI more accurately.Precious

After months of implementing an impressive series of steps to track their conversions to previously unheard of levels, they saw their worst fears confirmed. Their AdWords account wasn’t anywhere near as profitable as they’d thought. In order to confirm this they decided to freeze their AdWords account for a seven day experiment to see what impact this had on their sales.

If I remember correctly it was just over 24 hours later that they turned their AdWords ads back on, as the immediate and dramatically negative impact on their sales was all the proof that they needed. Their brief but costly experiment had taught them that conversion data is not to be relied on.

This particular company was fortunate in that they not only had high volumes of fast-converting data to reach this conclusion quickly, but also had the foresight to test their theory before fully committing to it.

I won’t bore you with the variety of different reasons that there may be disconnects in your conversion tracking, but I will ask that you at least consider the idea that your tracking may be dangerously misleading.

Let’s take a step back. If I were to build bird houses and sell them in local markets and craft fairs, I would be able to precisely track my ROI, based on the costs of my time and raw materials, the costs of my selling at each event and the sales from each.

The same rules, however, do not apply online – at least not for most businesses. And this goes far beyond the issue of which attribution model you choose to work with. You simply cannot track all your sources, and more importantly you have no idea how representative this data may be.

When a person fills out one of the forms on the SoftwarePromotions website, we can see where that person came from as a referral source.

In days gone by we used to also ask people where they heard about us, and the disconnect between what people said and where they actually came from was enormous.

So even when you can track, you can’t necessarily rely on the data produced.

We also recently started working with a company that I first met at a conference many years ago. When they filled out the form on our website I could see that they “found us” through Google. This was in fact true, but also quite incorrect.

I can only imagine how many businesses close their AdWords accounts in error because of incorrectly calculating a poor ROI.

I assume that this is significantly less than the number of businesses who spend far too much on their accounts but never realise.

The house, in this case Google, always wins. And they don’t even need to rely on statistical probability – they can weight the system as they see fit.

Conversion tracking is an extremely useful indicator. Using it as anything more can be deadly.

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When it comes to AdWords, what works for some may not work for others.

One account’s goals may be different from another. I might want to show my ads to a large number of people, while you might only want to show your ads to those who are at a specific point in the purchase process.

We each have different agendas and how each of our accounts perform will be fundamentally different. We will also gauge success differently.

Begin by taking a step back.

Ask yourself, what do you hope to achieve by using AdWords, and how realistic are those goals?Goals Concept

AdWords provides you with the ability to precisely target your prospective customers as well as the analytics to back it up. The problem is that most people don’t know how to correctly interpret the analytics.

You should know that conversion tracking as well as Google Analytics are integral to understanding how your account has been performing. Clicks, impressions, CTR, cost and average position will only tell you one side of the story.

You want to understand what happened after the ad click.

What most people don’t realise is that conversion tracking is not accurate. You’re able to track some data but you won’t be able to tell how accurate it was. You won’t know if it was 10%, 90% or 100% of the actual conversions.

If you concluded that success is down to ROI, you’ll need to identify all the people who clicked on your AdWords ads and paid for your product or service. The problem is that you might not be able to see that occur every time.

In my years of AdWords experience, I have dealt with a wide range of AdWords account types. Accounts that advertised pregnancy classes, luxury resort rentals, real estate, enterprise level software and more. They all had one thing in common: Tracking success within AdWords is a problem.

Each of those accounts received sales, however they weren’t always attributed back to AdWords. Understanding this lack of accuracy with conversion tracking is critical when interpreting your account’s performance.

Determine what you can track.

If you’re just tracking sales and you’re not seeing many conversions, you won’t be able to act on that data. And you need data in order to make decisions.

Think in terms of what people do once they arrive on your website, starting with what you want them to do once they arrive on your website.

Most probably don’t arrive and then enter their credit card details. Your potential customers are more likely to read a few pages, fill out a form, download your software prior to purchasing or simply leave.

Track them all. The more data you have, the easier it will be when making decisions that impact your account.

Keep in mind that once you begin tracking more than one type of conversion, you’ll have to weigh them differently. Someone that clicks on your AdWords ad and then purchases your product will be more valuable than someone who just downloads a PDF whitepaper.

At this time, Google don’t look at them differently. To Google, a conversion is a conversion. Meaning you have to be careful when using Google’s conversion optimization tools.

Sometimes, you need to look beyond the conversion.

Let’s assume for whatever reason, that you can’t track sales back to AdWords. You’ve proceed to setup conversion tracking for various actions across your website, all of which indicate an interest in what you’re offering, and it’s producing plenty of data.

Just because you’re seeing large numbers of conversions doesn’t in itself mean anything.

To put it bluntly, people are strange! You might find a situation where a website or search term results in a large number of conversions that has nothing to do with your product or service.

These people are clicking on your descriptive ads, traversing your website, and ultimately performing those conversions.

Everything indicates that these people are interested in what you’re offering, however you’ll need to put the conversion tracking data aside and try to understand what is truly happening.

Conversions tracking will only take you so far.

Don’t let it lead you to the wrong conclusions. Understanding its limitations will help you determine if AdWords is working or not.

Start by reviewing your search terms report. This report provides you with the exact searches people performed in order to trigger your ads. If they seem overwhelmingly off-topic, then you’re not targeting the right keywords or you’re allowing irrelevant traffic to somehow enter the cycle.

Review your CTR (click-through rate). How has it been trending over time? If you’re seeing that it’s rising, that’s a good sign because it means that you’re delivering relevant ads. Google will reward you for relevance by showing your relevant ads more often and at higher positions. If you’re seeing that your CTR is declining, that’s not a good sign because it means you’re not showing relevant ads. In turn, lower CTRs could result in your ads being shown less often and possibly costing more per click.  

Review your bids and your average CPC (cost per click). If your bids are set too low, your keywords won’t trigger your ads. Setting your bids too high, will result in wasted spend. You wouldn’t want to pay more for something that you can get for less.  

Review your average positions. If your ads are shown predominantly in lower positions, they will be clicked on less often or not clicked on at all. That will impact your CTR as well as your cost per click.     

Review your Analytics data. Once people click on your ads, you need to understand what they do after they arrived on your website. If they leave immediately (bounce rate), then your landing page might not be the best fit. If people are arriving and then viewing a few pages (pages / visit), that could be a good indication, however you need to make sure they’re visiting the right pages. If most visitors are not finding what they’re looking for, that’s not good.

Review your conversion data. Once again, you need to be careful when analyzing your conversion data. Understand that the absence of conversion data does not necessarily mean that it’s a bad thing.

Last but not least, never look at just one metric. A high CTR is pointless if most visitors leave your website within a few seconds of arriving.

On their own, each metric is meaningless. Combined they carry power and authority.

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As a service provider, who would you think is our biggest competitor? It’s not another SEO agency, and it’s not an AdWords agency. It’s the firm based near where you work, who can walk, drive or commute to where your business is run. This is ludicrous.

Historically it made a great deal of sense. Our parents and grandparents did business in a world where phone communication might be too limiting and travel was expensive. My Dad, for example, was a self-employed Optician who needed to meet quite regularly with his accountant. He couldn’t have considered someone who was based an hour away, let alone someone in a different country. More importantly, there were an abundance of people to choose from within his local community, so choosing from a set of local options made perfect sense.

Today we live in a world with a more diverse set of skills, many of which didn’t exist in our own childhood – if you’re as old as me anyway. And the internet has provided us with possibilities that were only considered in science fiction even one generation ago.

Which is why I am baffled when a company reaches out to us, likes what we say and admires our reputation, yet chooses instead to work with a local company. (Note: I’m only baffled when the main reason for doing so is their proximity.)

It's 2014 already

Don’t get me wrong – there’s no bitterness. Our company is generating enough profit to feed ourselves quite nicely, thank you. And I certainly don’t expect every sales quote I send out to be accepted.

Yet I find it difficult to understand when we lose to a local company. If you’re based in Silicon Valley, then there’s a reasonable chance that by choosing a local option you’re not limiting yourself too dramatically. Everyone else, however, are limiting their options to the services based within a small radius of where they happen to be located. If you insist on your SEO agency being located within an hour of your offices, how many options do you have to choose from? Five? Ten? Fifty? No matter where you’re based,I guarantee it’s less than the whole world.

Limiting the companies you work with means limiting your chances of growth and success. And all of this so that you can indulge in the formality of a handshake? Perhaps you also insist that they wear a suit and tie while optimising your content, or maybe even a three piece suit?

This is 2014. Our company has worked with more than 500 companies from more than 40 different countries. We communicate regularly with our clients using email, Basecamp, Google Hangouts, Skype, GoToMeeting, the phone and yes, occasionally we even get on a plane to see them.

The price you pay for confining your options around the conventions of yesteryear might be enormous.

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I think it’s time to stop chewing over the SEO vs. AdWords debate. Here’s why.

Google have long argued an absolute separation of their organic and paid search results, at least from the point of view of the factors and variables involved. Yet the two sets of results have, over the years, moved closer to each other, both in terms of spacing and appearance.

Google’s position is an interesting one, as the majority of their visitors are probably more interested in the organic results than the ads. Google’s revenue, of course, comes from the clicks on the ads. So while the organic results (and underlying data) act as the bait to draw the masses in to Google’s network, it’s the ads themselves that feed the very infrastructure that supports them.

This balancing point is incredibly fine. If Google get it wrong, they risk either alienating and losing their clicking customers, or losing and alienating their clicking customers. Caught between a rock and a rock in other words.

The question for many businesses is where to invest their resources – in organic search engine optimisation/optimization or in AdWords.

There are many who are convinced that Google’s party line on organic and paid separation is little more than a lie, designed to make you reach for your credit cards, but they’re wrong. Dr Pete Myers put together an excellent Mathographic on correlation vs. causation – the internet would be a better place if more people printed it out and put it on the walls by their computers.

But returning to the main question: organic vs. paid. The bottom line is that while the effects of changes can be measured, I’m yet to see a complete understanding of the precise causes of the overall impact.

balsamiq score twice!

Consider the following example:

If a person searches for wireframing software in Google, the first few results show one company – Balsamiq – being represented both in the ads and organic results. It doesn’t take the most astute of marketing minds to appreciate that being shown twice in a relatively small amount of space increases the exposure and subsequent chance of being noticed. It’s impossible to say with any degree of accuracy precisely how much each option is effectively being strengthened. It is, however, almost certain that either the ad, the organic listing or (most likely) both are more likely to be clicked. It’s also extremely likely that the balsamiq listings are more likely to be clicked than their comparitively under-represented competition.

Failure to optimise your website for Google and/or failure to effectively compete in AdWords takes away or even eliminates this competitive advantage.

For me there’s nothing to weigh up between AdWords and SEO. It’s both.

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We just discovered a bug in Google Analytics. In itself that’s worrying enough, but Google appear quite adamant that this isn’t an issue. I strongly disagree. Here’s what happened.

While recently reviewing organic search traffic in Google Analytics, we noticed that some of what Google was identifying as organic was actually coming from AdWords. When we looked further, Analytics identified this traffic as being from Google, and that it wasn’t from AdWords at all, but Google organic. There were two problems with this – it was incorrect and also impossible.

The fact is that you can’t manipulate this data. Let me rephrase that. You shouldn’t be able to manipulate this data. Google should be able to determine with 100% accuracy what is AdWords traffic and what is organic traffic. Even if you were to tag your URLs saying that it was from Google organic, for example, Google Analytics should ignore that.

Let me make this clear though. We were not doing that.

We manually tag destination URLs within AdWords as well as using the AdWords auto tagging system. It’s true that using manual tagging as well as auto tagging can cause conflicts, however we are not using the UTM manual tagging system. We use our own tagging system in the following format; ?source=adwords&campaign=my-search-campaign&adgroup=my-adgroup&adnum=001

This is what the issue looks like within Google Analytics:

Google Analytics - landing pages for non-paid search traffic

Note that this is for landing pages. This simply shouldn’t be possible.

If this were correct information, it would mean that Google had indexed those URLs. They would never have done so, because Google don’t want to index URLs with identical content. And as you can see, all the URLs in the screenshot are of the identical home page.

We have contacted Google about this issue and have received conflicting comments, so far with no real solutions. One Google rep said the following:

“After checking with our specialist, they confirmed that due to source and medium not being specified as google and cpc respectively, this could be the reason for Analytics not being able to attribute the visit to Google paid traffic. Additionally, we’re unable to troubleshoot further into this due to the use of auto-tagging and query string tag on your ads destination URLs. We recommend using either one and not both.”

This particular rep is implying that any form of tagging will conflict with AdWords auto tagging. As you can see, we are not using UTM tagging, so Google Analytics would ignore our tags as they do across numerous other accounts that we deal with.

Another rep we spoke with over the phone agreed with our assessment. Our unique form of tagging shouldn’t and wouldn’t cause this problem, as we are not using the Google Analytics UTM tags. 

We have never seen anything like this in any other account that we have come across. Have you?

If you have seen this issue, or something like it, I’d really appreciate if you would let me know. Either contact me through email or give me a shout on Twitter.

Update: Another reply from Google. They now seem to partly understand the issue, but their explanation is bordering on insane:

Thanks for your response.

Sincere apologies for the confusion caused.

I checked this with our specialist once again and you were right, your pages such as this: /?source=adwords&campaign=XXX&adgroup=YYY&adnum=ZZZ isn’t using the manual UTM tagging, hence, it is fine to use these pages together with AdWords auto-tagging. Once again, I do apologize for the confusion caused due to this.

As for this pages such as /?source=adwords&campaign=XXX-search&adgroup=YYY&adnum=ZZZ getting reported as coming from non paid search. If you’re using these pages only as AdWords ads landing pages and not on any other online sources or advertising mediums, it’s possible that users who previously visited these pages through an ad click had bookmarked this page or send the link to another friend, so those visits will not necessarily get attributed to Google cpc (if the cpc cookie has expired or user cleared cookies) and will instead get reported to the actual traffic that brought in the visit.

Hope this helps. Do let me know if there is anything else I can assist you with.

Good grief.

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I don’t believe for one moment that Google are evil; it’s a baseless idea that most intelligent people reject as sensationalist.

The embodiment of good, however, has to be more than just the absence of wickedness. And a motto of simply not being evil does little to reassure me of a company’s intentions.

Imagine, for example, a person described as “not evil“. This wouldn’t exactly be a reassuring endorsement, yet this is the line that Google have chosen to draw in the sand.

If Google used my data for their own purposes, this would never be described as evil.

If they sold my private data to a third-party, this wouldn’t be evil either.

In fact on the scale that goes from good to evil, there’s a tremendous amount of awfulness that you can get away with and still not get close to the end of the axis.

Don’t get me wrong. I like a lot of what Google does, and my business is largely based on their products and services.

But I find it incredible that few choose to question the wisdom of trusting a company who merely commit to refrain from wickedness.

In the scale of aspirations that’s remarkably low.

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When setting up an AdWords campaign, one of the central decisions you’ll need to make is who to target and how you actually target them. Google do provide a fair emount of control, however if you use the wrong settings, you’ll end up showing your ads to people who weren’t interested in the first place.

Take the following into consideration when trying to target the right people:

Different time zones.

If you’re targeting multiple countries around the world and you only wish to display your ads between 9:00 AM to 6:00 PM, you might run into some issues. This can be accomplished, however you’re campaign configuration is vital.

Ad scheduling is based on your account’s time zone and not the visitors time zone. When you initially set up your AdWords account, you set a time zone that cannot be changed.

If your account’s time zone was set for Chicago and you wanted to target all of the United States, the United Kingdom and Australia, you’ll need to setup multiple campaigns in order to accomplish this. If you were to target all those countries within one campaign, your ads would only be displayed during 9:00 AM to 6:00 PM within Chicago, missing out on those working hours in the United Kingdom, Australia as well as the other time zones across the United States.

Be careful, you might be over bidding.

When targeting multiple locations, you’ll soon find out that not all locations need the same bids. In some cases, you might see that you’re overpaying for traffic from a particular location.

With the introduction of Enhanced Campaigns, you’re now able to set a bid adjustment per targeted location. Let’s say you want to bid 10% more on traffic from the United States and -10% less on traffic from the United Kingdom. In the past, you would need separate campaigns in order to accomplish this. Now this can be done within one campaign.

Why is your entire budget being dominated by one or two locations?

Setting bid adjustments per location can be useful at times but I still wouldn’t recommend that you proceed with merging all your geo targeted campaigns into one single campaign. If you’re regularly limited by your daily budget, you may have noticed a situation where one or a few targeted locations dominate your entire budget leaving nothing behind for the other locations that you wish to target. The only way to stop this from happening is to split groups of locations into separate campaigns that each have their own dedicated budgets.

What about people outside of the targeted area that are interested in what I’m offering?

When deciding which locations to target, you’ve probably started off with people in your area of service or where you have historically seen sales. That’s fine for a starting point but you might be missing out on people who want what you’re offering but happen to be outside your targeted area.

Take the following as an example, let’s say you have a restaurant in New York city and you were to only target people within a 20 mile radius. There are plenty of people within that targeted zone, however you could miss out on all the people that are located around the world who happen to be visiting New York city in the near future. Obviously, you don’t want to target a general term such as restaurant across the entire planet. That would probably burn through your budget rather quickly.

Depending on how you configured your campaigns, Google will show your ads to people based on the following campaign level setting:

  • People in, searching for, or viewing pages about my targeted location (default)
  • People in my targeted location
  • People searching for or viewing pages about my targeted location

In the past, Google would show ads based on the visitors IP address. It’s not a perfect system but the IP address can in some cases demonstrate where a person is located. A little over a year ago, Google introduced a smarter system of search intent. With search intent, Google interpret the actual search in order to pull out location based information regardless of where they are actually located.

If you weren’t aware of this setting, you’ll most likely be using the first option which includes search intent as well as IP address based targeting.

Search intent is great but it also needs to be used with caution. Here is another blog post that dives deeper into the issues that can arise when using search intent.

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