Geo Modifiers and Your Mobile are not attaining the Job Done for Paid Search

Comments Off in Paid Search Column
February 9, 2015

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For enhanced Campaigns, which are the part of the Google campaign, allowing the advertisers the opportunities to adjust the bids for their phones and locations, the adjustments for location bids and the phones play a great role. The performance due to phone and location are not self-determining rather the performance of the phone is affected by the geography and it helps to get the advertisers some interesting trends for managing these modifiers.


State Wise Paid Search Usage

The Q4 report of 2014 based on Merkle|RKG information is demonstrated in the following picture, which shows the paid search traffic that, are coming from the phones of each state of the United States. By checking all data, it is found that the average paid traffic through phone share is 23 percent. Vermont provided the lowest share of 12 percent of paid search traffic by phones and Mississippi got the highest phone traffic share at 29 percent.

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Mississippi is the state of lowest median income and thus the users are using the internet with their primary internet-accessing device, their phones and this is happening so obvious that they got the highest phone traffic share. The result is depending on the higher cost of the setup of internet connection at home and cost of the router, modem or other internet devices with the monthly bill. However, the phones of low cost, including getting phones in free or cheapest price for a longer term of contract are getting easier access to the internet for the users.

After plotting the traffic share getting from the phones against the median income of the states, a negative correlation between phones’ traffic share and income can be found as the following graph:

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But, here income can’t be the only factor that can play a vital role in getting phone traffic share.


Most Phone Users Are The Young People

The young generations are usually capable of browsing the internet through phones and they are feeling more comfortable using a smartphone by themselves. From these people the internet-accessing rate is much higher as phone traffic.

The plot for the paid traffic share from the phones against the median age from states provides a negative correlation as the previous income plot. Take a look at the following graph:

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So, the income and age are not two independent factors for paid phone search traffic. As the young people have, the less earning power, they use more phone for accessing to the internet and the adults who cannot afford to get home internet connections are more comfortable to use the internet at their phones. This is the summary and causes behind getting more paid search traffic from phones.


Phone Traffic Share From The Young People And Lower Income User Are More Worthy

The revenue per click (RPC) has been plotted against the states median income and it has found that the greater revenue has come from higher income states and RPC got lower in the lower median income states.

A new result has been seen in lower income states that the RPC from a tablet or phone and the desktop has seen no significant difference.

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Plotting the RPC against the age class of the states found the expected negative correlation.

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This makes some senses so clear that the poorer and younger users are like to use the home internet connections. So, the area having more adult and richer get the more RPC and they get the cross device possibility with store interactions more that the poorer and younger users.

The young people like to use smartphones and so their internet access are providing lower income generating areas and the online orders are not effective here. Thus the businesses, which are for the lower income users and young people, they need to enhance their businesses more here for getting more phone traffic share.


Relative CPC Variances Are Still Present

The average CPC (cost-per-click) in the higher income areas are much greater for all types of devices and it is without the bid adjustments from the advertiser. The following graph shows the CPC from smartphone and desktop by state where the gap in the click value is much smaller.

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As the CPC moves in the similar direction, the uniform return from the ad across different states need to prioritize the bid adjustments. Thus, the advertisers can get more profit by setting bid adjustments on the phone for different geographies.


Advertisers’ Problems

The advertisers have two levers and they are geographically and device. These two are mostly related and phone traffic performance is better in geographic variations.

Some problems are shown here for the advertisers as the hypothetical example:

  1. If the click for ads on the desktop is $1 nationwide and for phone its $0.50, it need to set the Enhanced Campaigns for the phone modifier to -50 percent nationwide.
  2. In deeper digging, if the desktop click is $1.50 worth in Virginia and we are going to add 50 percent geographic modifiers for that state, the base desktop bid will be $1.50 from $1 and the mobile bid will be $0.75 at -50 percent phone modifier.
  3. Still digging deeper it can be found that a phone click is more than 50 percent less valuable that the desktop click and we cannot set a new campaign for the mobile modifier in Virginia.

Therefore, the difference between the click value for phone and desktop may vary greatly for geographic locations and so the bid adjustment for phone and locations are needed for an intricate and weighty campaign creation.

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