How does this improvement work? 

Opteo uses geographic performance data to drive bid adjustment suggestions in countries, regions, and cities. We continuously monitor the performance of your campaign across different locations, working from country-level down. Think of it like the concentric circles on a dart board. 

When we find a location over- or underperforming relative to others on the same level (e.g. the USA compared to other countries, or New York compared to other states), we’ll offer an optimal bid adjustment. We’ll also show you the location’s CPA relative to your target CPA. 

Completing the improvement will modify bids in the specified locations by the noted percentage. Only campaigns already targeting the location will be adjusted – we'll list the campaign names within the improvement task.

I can see two bid modifications within this improvement. Why? 

If you’re adjusting a “child” location, you’ll notice Opteo will often make a necessary adjustment to “parent” locations too. Adjusting the parent location accounts for the splitting up of parent and child — for example, if we adjust bids on New York, we should now view the USA as USA minus New York. Removing the outlying CPA of New York is likely to change the average CPA of the USA. Opteo will, therefore, calculate the optimal bid for USA minus New York, which will probably result in a bid adjustment. 

Opteo will always show you exactly what changes you’re making across all locations (parent and child) before asking you to complete the improvement. 

How can location bids help reduce overall CPA?

Location bid adjustments allow you to adapt bids to different geographic areas. Decreasing bids will reduce CPCs in your chosen location and make your ads appear less frequently. Increasing bids has the opposite effect: your ads will be seen more often, usually for a higher CPC. You can make location bid adjustments to Search, Display or Video campaigns.

If your campaigns are performing well in one location, you should try to capture more conversions by increasing your bids there. If the opposite is true — searchers in a specific location are clicking on your ads but not converting — decreasing your bids for that location will cut down on wasted spend. Both adjustment techniques should reduce your overall cost-per-conversion.  

To check out your account's location data outside of this improvement, Opteo breaks it down by country and city under the Segments tab in Performance. Have a look — you might pinpoint areas of limited brand awareness, or find a new crowd of customers!

Technical Notes:

  • We won’t suggest new countries or areas you weren’t previously targeting. For example, if your campaign only targets the UK, we won’t suggest targeting France too. 
  • Only those campaigns already targeting the specified location within the campaign group will be adjusted. 
  • We always start by suggesting the most impactful adjustments. If you don’t already have location adjustments in place, you’ll see suggestions for modifications by country before we start suggesting more specific adjustments for region or city level. 
  • After you complete this improvement, we’ll collect new data on the location for 90 days before suggesting another change. Collecting a set of new data is crucial for an accurate assessment of new bids. 
  • Our suggestions range from -30% to +30%. If you've already got bid adjustments applied, we won't overwrite them — they'll be merged via multiplication. It's useful to know that internally, AdWords saves bid adjustments as decimals (e.g. +12% as 1.12,  -40% as 0.6). So, applying an adjustment of +20% (1.2) to an existing +30% (1.3) will yield a final bid adjustment of 56% (1.2 * 1.3 = 1.56). 
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