Location Based Bid Adjustments for your Campaigns in Google AdWords

We have learned the basics of device level bid adjustments and how to set them up in the previous blog. We have also discussed how auctions in AdWords work. In this blog, we will see how location based bid adjustments can be set. But before we get into that, lets recap on what bid adjustments are first.

What are Bid Adjustments?

Bid adjustments allow you to set the frequency of your ads. You can adjust the bid based on the time of the day, the location of the user, the device that the user is on when using Google search and more.

Note: Bid adjustments are set by percentages either at campaign level or at ad group level.

You can use location based bid adjustments to target audiences from specific geographies. You can also adjust bids for locations where you don’t want to show your ads.

Say you own a chain of cafes, you can use location based bid adjustments to customize your ads or bid higher for such locations.


How to set Location Based Bid Adjustments?

  1. Pick a campaign to which you want to add location based bid adjustment.
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  2. Switch to setting after selecting the campaign.
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  3. Select the locations tab under setting menu.
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  4. Click on the cell corresponding to the location you want to adjust bid for in the Set Bid Adjustment tab.
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  5. You can either increase the bid or decrease it. Enter a value in the box and click make changes to set the adjustment.
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  6. You can leave the box empty to remove the bid adjustments.
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Additional Information about Location Based Bid Adjustment –

Unlike device level bid adjustments, you can’t set location based bid adjustments at an ad group level. This setting is available only at the campaign level. However, the range of location based bid adjustment is also -90% to +900%. And if you don’t want to show ads for a particular location, set its bid -100% (decrease by 100%).

Note: You can also add new locations to target. In the screenshot below, you see a + locations button left of set bid adjustments. You can target a specific city, a region under the city, a state or a country as a whole too.
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You can also use location extension to target users who are located around your business area. Using the location extension, you can show your business location, phone number, and a marker on the map. You can specify a radius around your business location and bid accordingly using location extension.


An example of Location Based Bid Adjustments –

Let’s say you are advertising on AdWords to promote your new chain of cafes in New York. You have multiple outlets operational in Queens, Brooklyn and JFK Airport, but not in Manhattan. Users looking for a cafe from Queens, Brooklyn and from around JFK Airport are clearly the ones you want to target. You would still want to show up for people searching from Manhattan because you are opening shortly, but you don’t want to bid high. However, you can adjust your bid based on the location of the users to improve the impact of your ads.

  • You increase your bid by 25% for locations Queens, Brooklyn and JFK Airport.Your starting bid: $2.5
    Location bid adjustment: + 25%
    Resulting bid: $2.5 + (25% x $2.5) = $3.125 Hence, for any user searching for a cafe around Queens, Brooklyn and JFK Airport, your bid will be $3.125.
  • You decrease your bid by 20% for location Manhattan.Your starting bid: $2.5
    Location bid adjustment:20%
    Resulting bid: $2.5 – (20% x $2.5) = $2.0

Hence, for any user searching from the Manhattan region, your bid will be $2.0.

The above example is to give you an idea on how you can use location based bid adjustments. Following the above steps you can set location based bid adjustments to your campaigns. We will discuss ad scheduling bid adjustments in the next blog.


About the author

Mantha Sai Praveen

Content marketer by day, a poet by night.

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