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Optimize Your Budget & Local Paid Search With 3 Simple Steps

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Search engine marketing or paid search is one of the most sought after forms of online advertisements. There are great benefits of leveraging paid search for the purpose of lead generation and higher conversion rate. The only point of concern while implementing paid search or search engine marketing is the budget allocation. Since every company wants to extract the maximum out of its investments, the way you optimize the campaign, localize the promotional campaign and budget optimization becomes really important. There are certain tips to optimize the budget and local paid search so as to achieve a better ROI on the campaign.

Efficient & Scalable Account Structure

Out of all the factors that impact the paid search engine campaign like how you categorize your search engine marketing campaign, user behaviour etc., an efficient and scalable account structure is the area where the advertisers need to work their brains out to achieve better results on the paid campaign. The ultimate question is how localized do they want their campaigns to be. Lets talk in more detail about the same.

Localized campaign

It is one of the most conventional forms of account structure for any paid search engine marketing campaign. In this, the advertiser targets users based on the geography. For example, the objective of the campaign could be just targeting the people from a state or a metro city. Such an account structure is preferred when the advertisers are targeting local keywords, having localized ad campaigns or redirecting the users or the potential customer to a localized landing page. There are certain cons of the above account structure as well. Such an account structure requires making of localized landing pages, maintenance of all those localized landing pages, skills to collate the data from different locations and then analyzing and making bids according to such a large database. All the above mentioned points add to the uneasy implementation of localized campaigns.

National/Global Campaign With Location Bid Modifiers

Such an account structure is appropriate to use when the advertiser does need localized ad campaigns, localized keywords and landing pages to reach out to the potential customers. For example, there could be a single campaign targeting the people of India with different location bid modifiers say for every state. The advantage of using location bid modifiers is:

  • Cost can be better allocated to different locations
  • Scalable account structure
  • Multiple level of location bid modifiers can be used which means not just the state but location bid modifiers can be used for different pin codes as well
  • Better and efficient structure
  • Less effort than the localized campaigns

There are certain drawbacks as well of using the nation wide campaigns with location bid modifiers:

  • No localized keywords/landing pages/campaigns
  • Less efficient for targeting people for regional products


Generally nowadays advertisers prefer a hybrid of both these models to achieve a higher conversion rate for their campaigns. What advertisers do is, they use localized campaigns for their top target locations and use location bid modifiers with a single campaign for the other target locations. It has been observed that such hybrid account structure gives better results as compared to implementing both the models, individually.


Location Bid Adjustment

Location bid adjustments help the advertisers reach out to the potential customer in a more granular yet cost effective way. It helps advertisers analyse how the paid search engine campaign is performing over different locations and then assign the budget accordingly. The first step to setting up location bid adjustments is by adding the area you want to target. The second step is to then bid on the keywords targeting that particular area individually. The system then asks the advertiser to increase or decrease the bid after looking at the performance of various keywords in different target locations.

You can modify your bid based on the hour and day of the week as well. To make it more clear, let us look at an example.

Suppose a wellness company is targeting the users for a Spa service, the company can choose to bid more during the service hours (Say 10 am to 8 pm). There is no point targeting the users when the store has closed. At that point of time during the non working hours, advertisers generally bid very low on the keywords.

Hourly bid adjustments have been quite effective in increasing and determining the conversion rate during different hours in a particular day.

Measure The Costs & ROI

It is one of the most vital aspects of any paid search engine marketing campaign. Determining the expense on every keyword targeting different locations and then the return on every keyword is important to modify the bids and increase the overall conversion rate. The ideal thing that most of the advertisers do is they build a cost-revenue model for every keyword targeting a particular location with the help of location bid adjustments. With the help of this, they get deep into how the keywords perform across different locations and accordingly the bids are modified. The advertisers generally run a test to dig deep into changes in clicks, average cost per click, conversion rate as well as revenue generated.

Such models/tests could be run for every keyword/campaign pair. Generally these tests are  analysed using linear regression models but advertisers can move to more sophisticated models so as to get into more detail and compare the returns on different keywords and then update the location bid adjustments accordingly.

All these tips could surely help you optimize your local paid search and allocate your budget more efficiently to the search engine marketing campaigns by reaching out to the potential customers in a better and cost effective manner so as to increase the overall conversion rate of the campaign.

Image Courtesy: SearchEngineLand

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  • There is 1 comment

    • 4 years ago

      ParmaLinks   /   Reply

      In on-line Marketing you must chose your location and cost. that is helpful for you.

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