How to stop wasting Adwords spend by targeting relevant Audience?

All Digital marketers advertising on Google use AdWords at some point, but how they utilize it differs from advertiser to advertiser. The successful ones are those who utilize Adwords resources in the most effective ways.

Adwords contains mountains of hidden secrets to be discovered and these are essential pieces of data to understand the target market. Make sure you are following these steps to uncover the treasure.

Segment the devices

People behave differently across devices. According to the Monetate Ecommerce Quarterly Report for Q4 2015 (registration required), conversion rates varied greatly between tablet, smartphone, and desktop. Now that Adwords also provide tablet bid adjustments, you can truly understand that how your ads perform on different devices.

 Do this: Create three identical campaigns with the same budget. Name them as follows:

  1. Mobile – [Campaign Name]
  2. Desktop – [Campaign Name]
  3. Tablet – [Campaign Name]

For each campaign, set the bid adjustment of the other devices to -100%.

http://searchengineland.com/figz/wp-content/seloads/2016/09/desktop-only-campaign.png

This segments your data into equal thirds, allowing you to isolate performance against device type.

Understand Performance Across Audience Income Levels (US only)

One of the most important variables in AdWords is the ability to target specific income brackets in the US on search, based on data that Google pulls directly from the IRS. This often-overlooked feature is buried under the “Locations” tab on Adwords can actually prove very valuable

Do this: When setting up your campaigns, segment all your locations by Audience Income levels. By selecting each income level as a target, you will be able to compare how your campaign performs across six different income brackets:

  • Top 10% income within the US
  • 11% to 20%
  • 21% to 30%
  • 31% to 40%
  • 41% to 50%
  • Bottom 50% income levels in the US

“Income-based targeting shouldn’t be looked at as a way to include or exclude people. It should be another way for us to prequalify potential customers based on income.”

Use hidden location data for potentially targetted audiences

Use AdWords’ robust reporting features to find niche audiences that convert well for you.  Essentially, you should be looking for groups of similar people with a potential affinity for what you’re selling.

There are three such groups in AdWords with HUGE upside:

Place of interest: Universities, airports and commercial area

Do this: Layer universities, airports and commercial area targeting over your location settings.

By adding these targets to your campaign, you’re not adding NEW audiences — you’re creating segments of your targeting information to give you more opportunities to identify and monetize trends.

Understand and Analyze daily schedule

One of the most powerful (and underutilized) adjustments in AdWords is changes based on ad schedule. Formally known as “day parting,” ad schedule bid adjustments allow you to control bids and prevent your ad from showing during certain times of the day.

There’s an ad schedule report built into all your campaigns, but it’s separated day by day, hour by hour. That’s 24 hours multiplied by seven, or 168 data segments. That’s far too spread out to make inferences.

When you’re setting up your campaign, you can set 0% bids for certain time segments. Each will be specific to your business, but here are  few  we recommend:

  • Weekdays versus weekends
  • Segment by work shifts (first, second, third)
  • Segment by key meal times (breakfast, lunch, dinner)
  • Segment by business hours versus non-business hours
  • Around holidays and festivals
  • Marriage season etc.

Maybe all your conversions come from people staying up really late at night (1:00 a.m. to 5:00 a.m.). You might be able to tell by looking at your 168-item data. But it’ll be much much easier with your data segmented into a few well-defined chunks of time.

In summary setup your campaign based on very simple targeting method and understand how your campaign performs across key data point: Device, Location, Income Level and Time of Day.

Following these steps will help your business lower wasted advertising spend by only targeting relevant or interest audience segments.

Do the work, optimize your spend, and increase your revenue.

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