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Regional Roi Bias
Posted 14 December 2006 - 08:48 AM
During my off season I note a distinct bias for completed orders, i.e. warmer states order more / more frequently during the winter (makes total sense), and ROI is significantly higher. This bias is concentrated in a handful of states, though CA and FL have a notable lead. The bias exists in-season as well, but is much more prominent during the winter months.
Other than limiting my AW ad displays to US and Canada, I don't currently use any regional settings, nor do I really know how they work in any detail. However, I'm thinking since I can see such a distinct pattern, I should be leveraging this to my advantage.
One approach would be to develop a separate set of campaigns specifically targeted to CA, possibly another for FL, and be more aggressive on these campaigns than I am on my non-regional ones. Though I'm not completely clear on the how at the moment I'm sure I'll figure it out, but conceptually this makes sense to me, though I'm not located in either. Would you agree this is a reasonable response and are there issues with targeting a region other than your own?
Are there any other approaches I should be considering to leverage this regional bias?
I should probably think this thru a little more before asking, but I'd appreciate any input from successful PPC users.
Posted 14 December 2006 - 09:26 AM
Posted 14 December 2006 - 10:16 AM
That's good to know. Before I waste a lot of time, I'd better be sure I'm working from solid stats and not just perceived patterns. Thanks
Posted 14 December 2006 - 10:36 AM
If you think you're doing really well in California, it would probably be worth your time to launch a California campaign. Not only can you react to that region's performance without impacting the rest of your campaigns, but if it doesn't WORK, it will answer a question without a huge time investment on your part.
The question in my mind is "What will take the larger investment? In-depth log file analysis or building a test campaign for one state?"
Posted 14 December 2006 - 10:46 AM
Posted 14 December 2006 - 10:57 AM
I'm a huge fan of testing. Test your theory. Don't think that will hurt you, and if it doesn't work, you can always just shut it down.
Posted 14 December 2006 - 11:04 AM
Be careful not to slice your markets too finely or you'll have such low volume on each that it will be hard to spot trends and take an overly long time to optimize your campaigns. Unfortunately, there's no easy to follow rule about how to do this. It takes experience. You have to dive in and try it.
Posted 14 December 2006 - 11:19 AM
I haven't delved into Google Analytics (as I hadn't been using my current stats to best advantage yet), now I have a reason to.
Good advice on not splitting markets up too much. My volumes are still low enough it's hard to be certain I'm seeing what I think I'm seeing. I've got a couple years of stats to work with, but so many changes have been made, I hesitate to look back too far.
<edit>The theory is worth testing ... but I think I'll wait till after Christmas to do so.</edit>
Posted 14 December 2006 - 01:56 PM
Posted 14 December 2006 - 02:05 PM
Just to let you know: I seem to have a situation similar to yours. I also get my largest number of orders (by far!) from California and Florida. I hadn't thought of doing campaigns to target those states though. So that gives me something to think about.
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