Geographic Bid Adjustments Based on Keyword Performance by Region

Geographic bid adjustments based on keyword performance by region involve analyzing how specific keywords perform in different geographic areas (cities, regions, or countries) and then increasing or decreasing bids for those locations accordingly to optimize ad spend and improve ROI.

To implement this effectively:

1. Analyze Geographic Performance Data by Keyword: Use Google Ads’ geographic reports (Dimensions tab > Geographic) to view metrics like impressions, clicks, CTR, cost, conversions, and cost per conversion broken down by location. This helps identify which regions have better or worse keyword performance.

2. Calculate Location-Specific Metrics: Summarize key metrics such as conversion rate and cost per conversion for each location. Compare these against your campaign averages to find areas where keywords perform better or worse.

3. Set Location Bid Adjustments: Apply positive bid adjustments (e.g., +15%) in high-performing regions where keywords yield better conversion rates or lower cost per conversion. Conversely, apply negative adjustments (e.g., -20%) in underperforming areas to reduce spend.

4. Use Tools for Automation and Recommendations: Platforms like Optmyzr provide Geo Bid Adjustments tools that analyze location-level performance and suggest bid changes based on target CPC or CPA, helping to identify expensive or underperforming cities and optimize bids accordingly.

5. Combine with Keyword-Level Adjustments: Adjust bids not only by location but also by keyword performance. For example, increase bids on high-performing keywords in specific regions while lowering bids on poor-performing keywords in others.

6. Consider Granularity and Specificity: Google Ads prioritizes the most specific location adjustment (e.g., city over state). Multiple location bid adjustments for the same user are not combined but the most specific one applies.

7. Monitor and Refine: Continuously track performance by region and keyword, adjusting bids as market conditions and user behaviour change. Exclude low-performing locations or reduce bids to avoid wasted spend.

In summary, geographic bid adjustments based on keyword performance involve detailed regional analysis of keyword metrics, followed by strategic bid increases or decreases to maximize ad efficiency and conversions in specific locations. This approach leverages Google Ads’ reporting and bid adjustment features, often enhanced by third-party tools for automation and insights.