BLOG-EnhancedCamp-LocationBidsAs Nikki noted in an earlier post, Google recently announced a new AdWords campaign format, called Enhanced Campaigns. There are an array of new features with this update but the principle idea behind this structural change is to help simplify the increasingly dynamic device and location-based targeting at Google AdWords. The feature that I find most intriguing is the capability of adding bid multipliers to a campaign based on the physical location of a search.

While the foundation of location targeting will remain the same, such as targeting and excluding locations, we now have the ability to bid more or less on a physical location or distance from a location, such as a business address. Google’s addition of bid multipliers using location-based segments is a great addition to the AdWords program. The ability for advertisers to decide how aggressively they would like to target consumers based on physical location, adds a whole new dimension to geographic targeting.

With Location-Based Bid Multipliers, a brick-and-mortar business, whose customer base is strictly local, can add a 150% bid multiplier for searches within a five mile radius from their store and a bid decrease for anyone who is located beyond 15 miles but still within a 30 mile radius. The idea behind this strategy is that not all consumers have an equal chance of converting. For many businesses, the location of a potential customer is the biggest component in the conversion equation and needs to be taken into account for effective PPC Management.

This advanced bidding feature is also incredibly valuable for an eCommerce business. Often times, eCommerce advertisers have large quantities of campaigns targeting an entire country. Although they do not perform equally in all locations, the idea of having to split out hundreds of campaigns to target every state, or even specific cities, can be overwhelming and extremely time consuming. Even if campaigns were eventually split, being left with tens of thousands of campaigns, it would be more difficult to manage effectively. Keeping campaigns consolidated while being able to add bid multipliers to specific locations based on performance is a far more efficient alternative.

The addition of Enhanced Campaigns is a big move for Google and it’s going to be an interesting journey to see how these features impact ad performance. While there are a few features that I do not agree with, bid multipliers for location targeting is one I am very excited about.