Is DMA Targeting Within AdWords the Wave of the Future?
February 17, 2009
Last week the PPC Hero team attended a lecture by Jim Koehler, Senior Statistician for Google. The lecture was on the campus of Indiana University as part of their Statistics Symposium (we are about a 7 minute drive from campus!). We had no serious expectations on the topic or content. But when someone from Google speaks, you listen!
The content was geared toward the target audience of the symposium; graduate students who are enrolled in the Statistics Program. Mr. Koehler’s presentation provided some details on how his team executes their quantitative marketing research. There were graphs that displayed how they track logistical regression and conversion attribution.
Honestly, some of the scientific elements and methods of how they test were over our heads (we’re not grad students in statistics!). But we did find what Google is testing to be very interesting and perhaps telling.
Throughout the presentation Mr. Koehler focused his presentation on testing that Google has been doing at the DMA level (Designated Market Area). DMAs are defined by Nielsen Media Research, and are used to identify specific media markets for those interested in buying and selling television, advertising and programming. Basically, this means that Google is testing the success rates of local, geo-targeted campaigns.
Mr. Koehler mentioned that during a recession, big companies will often pull back on their advertising budgets. This can ease up the competition in the paid search marketing space. And during this time, small/mid-size companies can make big gains by locally targeting their PPC campaigns.
Is this the wave of the future? Does Google think that paid search marketing will evolve and be dominated by campaigns that are geo-targeted to specific areas? Numerous advertisers already use this method of delivery, but does Google feel that a shift in focus is coming?
Honestly, we don’t know (even though other blogs have mentioned that the number of local advertisers is growing). But we do know that Google is conducting a lot of testing with DMAs and how to create the best marketing mix for success.
Perhaps Google wants to attract more local advertisers to AdWords, rather than catering toward “big companies” that advertise nationally. And perhaps they want to get this formula right before making a big push toward these smaller/mid-size companies.
Or perhaps Google really does think that geo-targeted campaigns with a smaller, regional focus will be the face of paid search advertising.
Side note: as part of their DMA testing, Mr. Koehler discovered that even Google can’t make advertising on YouTube profitable. None of the their tests generated a positive ROI with YouTube. Was this a wise acquisition since even Google has trouble generating positive results?
Mr. Koehler also gave a brief overview of the AdWords Quality Score. But he didn’t shock us with any new revelations or insider information. This portion of the presentation didn’t shock our brains. And if you read PPC Hero, it probably wouldn’t have shocked yours either.
Normally, we prefer to make claims or speculations that we can back up with hard facts. However, this time we are interpreting Mr. Koehler’s presentation and looking for those hidden signals on what Google is thinking, or least testing.
Browse By Category
A Reminder About Work-Life Balance
Proper Work-Life Balance Is Something Easily Forgotten. Here Is A Reminder That It's Okay To Have A Life Outside Of Work & Constantly Checking Performance.
The Advertising Principles That Guide Facebook's Decisions
Facebook highlights the advertising principles that guide their decision making in response to recent events.
A bi-weekly newsletter packed full of resources and strategies that will help make you a better PPC expert.
Hanapin Marketing | The PPC Agency of Experts Behind PPC Hero
Smart Ways to Get More Marketing Budget and Better Tools
In this new live webinar, Kristin Vick from Hanapin Marketing and Jeff Sauer from Jeffalytics discuss how marketers can ensure they have the budget they need to be effective with online advertising and get the right tools to make that argument.
The Hero Conf Difference
Of the 50+ search and social conferences you can choose from, we're here to show you why Hero Conf is a can't miss event for busy digital marketers like you.
Improve Your Facebook Ads With Creative Hub and Split Testing
With the updates to Creative Hub and the Split Test feature, one can now institute a basic ad creation and testing process directly within Facebook.