Archive for the 'Geo Targeting' Category

Google announced on their LatLong (Maps) blog today that they’re experimenting with placing pricing for hotels directly next to the hotel listings in Google Maps.

At first glance, it looked like another Google-internal affiliate marketing initiative, but it’s actually quite clever.

Here’s the official sample screenshot – Look closely at the price listing drop-down box in Adwords yellow:

If nothing else, it’s an innovative way to roll in Adwords results directly into the organic SERPs.

Paid Placement With a Twist

Interestingly, Google’s post points out explicitly that these listings are not traditional paid placements:

This new feature will not change the way that hotels are ranked in Google Maps. Google Maps ranks business listings based on their relevance to the search terms entered, along with geographic distance (where indicated) and other factors, regardless of whether there is an associated price.

So the blur between paid and organic continues it’s inevitable march forward.

It’s also of note that Google has chosen affiliate sites like Expedia and Priceline as their preferred advertiser testing partners for this experiment, not the hotels themselves…

It will be interesting to see how this progresses, and what other verticals it shows up in.

Do you run your PPC ads in different countries? If so, do you change your ad copy and landing page copy when targeting those different markets?

For many years, global brands have altered their marketing campaigns to target different countries.

An advertisement for a food product running in Australia may be markedly different from an advertisement for the same food product in the USA.

Why?

Whilst we share a common language, cultural values and norms differ markedly from country to country, and even region to region.

For example, what is considered soft sell in the US is often considered hard sell in the UK due to differing acceptance of overt commercial activity in those two cultures.

There are many differences:

Viewed from commercial America, British advertising looks like something bent out of shape by a culture so consumed with embarrassment it can’t look a salesman in the eye when he’s making a pitch, particularly if that pitch is laden shoulder high with emotion – love of country, family or God. From a mainstream US perspective our quirky elliptical leave-them-guessing advertising approach is kind of charming, but kind of unworkable too in America, with its fragmented audiences and ethnicities, its raging sensitivities and, above all, its huge risks. American advertising is risk averse because there’s so much at stake with those huge clients and their mega-spends. It means everything is researched to death so all backs are covered.

If you’re running a PPC campaign in different geographic markets, then you’re running a global campaign. So, you need to think about approaching such a campaign as a global brand would do, and tailor your message accordingly.

Your competition – who may understand those local markets intimately, as they live and work in them – will be designing their pitch based on local norms, so too should you, if you want to convert.

Here are a few ideas on how to target different cultures effectively:

1. Watch What Others Do

Take a look at how your product or service is advertised in other media in your target country. What language do they use? What imagery do they use? How are they making the pitch? Is it subtle? Hard sell? Humorous?

Now evaluate the ad copy and landing pages of your PPC competitors. What similarities do they share to each other? To ads in other media? How do they differ from how you would advertise in your own local market?

2. Spelling

A PPC ad written using US spelling displayed in another country screams “not relevant to this market”, especially when surrounded by ads that use local spellings.

Use “s” instead of “z”, and watch those vowels! Color becomes colour, center becomes centre and check becomes cheque.

Here’s a good reference guide to common differences.

3. No, They Don’t Think “Because It’s American, It’s Great”

Every culture thinks what they do is great, and what foreigners do is suspect.

Just as you don’t assume that something from Germany is great, Germans aren’t going to assume that something from America must be great. Some may even be hostile to the US – it just comes with the territory of being the new Roman Empire

It’s not that you have to cave to others demands, but it does pay to be aware of them. If you’re trying to convince someone to buy something, then you need to talk the customers language, on their terms, no matter if they live in New York or, well, York.

4. There Are Regional Differences

Just to complicate matters, there are significant differences between language in different regions in many countries, and particularly in the UK.

Just like there are differences between New Yorkers and Angelenos, there are differences between those in the north of England, and those in the South.

The South tend to think of themselves as intellectually and culturally superior to Northerners, and Northerners tend to think of Southerners as soft, fake and, well, elitist. These are generalisations, of course, but be aware that they exist, as these differences may alter your pitch.

5. Test

As always, test.

Change the language of your landing pages and ads depending on the accepted norms of local markets. Align your language and style with the most successful PPC ads targeting those markets.

Run with the winners and cut the losers.

Final Thoughts

The world is get smaller. The internet, and tech in general, is being driven from America. Naturally, it comes bundled with US cultural values.

This is leading to the Americanization of other countries and making boundaries, both physical and cultural, less of a block than they have been previously.

A pitch that works in America can translate into other cultures without change, but that won’t happen as a matter of course.

Think local.

Local businesses tend to be easy to service (because of limited competition), but tend to be hard to service profitably (due to big demands and small budgets).

Such companies are still spending billions of dollars advertising in yellow page directories across the United States because it is easy and flat rate. Search advertising makes advertising more granular and trackable, but most small businesses could not be bothered with it. While the dead tree advertising model is in decline…

Only the local interactive segment will show growth throughout the forecast period. All other local media will experience marginal to rapid declines in the next 18 to 36 months. A small number of traditional media will rebound with a revived economy beginning in 2011, though most traditional media will continue to decline, albeit at a slower pace.

…Google is looking to help transition small local business advertisers over to search by employing familiar flat rate advertising services, as highlighted in AdAge:

In a bid to get more local advertisers to buy search ads, starting this week Google is trying out a new type of search ad and pricing system in the San Francisco and San Diego markets.

Rather than ask businesses to set up a campaign and bid for keywords, they’re offering local advertisers (or non-advertisers) a search ad for a flat fee. The fee is set by Google and based on the average that similar businesses are paying for a given keyword in that market.

Lets go ahead and take one more look at that last sentence

The fee is set by Google and based on the average that similar businesses are paying for a given keyword in that market.

So Google is using your keywords and your bid prices to automate setting up accounts for competing businesses. You pay them for traffic and they arbitrage your efforts by using you as a free market research tool for competing businesses. And imagine if/when Google has 5 companies in your market all bidding based on the same flat fee average strategy. Some keyword prices could fluctuate wildly as the house decides to arbitrarily bid up or down a particular keyword or basket of related keywords.

In an earlier piece Mona Elesseily mentioned a recent Nick Fox keynote where he mentioned the idea of keyword-less paid search accounts, and how Google could run them:

Nick mentioned that keywords were used as a proxy for relevance. Conceptually, there is no reason an advertiser couldn’t achieve the same results without having to directly manage a keyword list. Down the road, Google wants to state outcomes and have machine-based learning and algorithms come up with the best method of achieving specific outcomes. In the case of no keyword search, an advertiser (like a retailer) would provide information on products, product descriptions, pricing, etc. and Google would use the information to find the most effective way to place ads in front of potential customers.

Those machine-based learning algorithms need input to become efficient. What happens if you share your conversion data with Google? This is one of the areas of opportunity on the web for 3rd party analytics providers. As Google continues to make advertising easier (and seemingly cheaper – at least up front) there will be added value in operating outside of their ecosystem and/or limiting how much data you hand over to the borg.

Presumably as this gets easier to automate and test it will increase the value of related services like website design and conversion testing (until those are automated and commoditized as well). But some smart business owners who enter the search game via these automated technologies will likely eventually want more granular control of their strategy, as it is hard to build a long lasting sustainable business based on market averages – especially when the fox is guarding the hen house. Over time those who evolve their model to increase lifetime customer value, increase conversion rates, and build distribution outside of search will eventually make the average price too expensive for an average business to be able to afford advertising.

Depending on how successful this test is, there are all kinds of implications for advertisers like…

• building and maintaining sustainable profit margins in an environment where machine learning algorithms see your max bids and work against you with every search and click
• deciding how much data to share with Google
• deciding if it makes sense to mix together multiple regions on 1 site to make it harder for search engines to use your campaign as a seed for competitors
• deciding if new business lines (and perhaps some longtail keywords) should be bid on for different websites that are not bidding on keywords associated with the obvious core industry keywords

And the general theme for online service providers is that if you are not thickening out your service prepared to be commoditized. Google does not need to create more value than you can, they only need to make businesses believe that you don’t add enough value to justify the additional expense, and that it is just easier for them to go with Google. Time to invest in brand building! Sometimes the SEO and PPC markets seem like mirror images.

Geo-Targeting AdWords

To improve tracking and save on a cost per click basis, I separated one of my campaigns into countries where English is the main language. I used Adwords editor to carbon copy each campaign from the main one and everything were kept the same except for the target area. The countries all seemed to fare well when grouped in one campaign but when separated, the numbers returned to me were disturbing. I realized that the countries expected to outperform did so-so and very poorly, ROI wise. I would have never known this if I didn’t test on a regional basis. The ratio of ROI was 4: 2.5: 1 where the best campaign did 4 times better than the worst.

Optimize Your Account For ROI, Not Clicks!

Another note is that my CTR was highest at the region that converted the lowest. I’m going to study this further and see why some countries did better than others. I had an entire week to collect data and will now dissect the Google reports. At least my quality score increased from the higher CTR.

The lesson I learned is to never assume anything with PPC advertising.