When you run your ads, you can increase your ROI by Geo-Targeting your Ads. How do you do that? Let’s get into it!
First, what is Geo-Targeting?
This is where you choose a specific geographical location on where your ads are going to be placed. For example, if you pick the USA as your Geo-Target, then your ad will only be shown to people within the USA.
Now, a lot of times, businesses don’t use Geo-Targeting in ways that help their dollars work hard. Geo-Targeting is especially important for businesses who don’t have a very large advertising budget!
You can use Geo-Targeting in lots of different ad placements outside of Facebook, however today, we are going to be specifically focusing in on Facebook and Instagram Ads since it is the easiest and most cost effective way to place ads.
Let’s use an example to explain Geo-Targeting better.
An insurance agency that is based in Des Moines, IA is wanting to run an ad with a $200 budget. When setting up the ad, they think about the area that they want to Geo-Target. Since they can write policies to anyone all over the USA, they chose the entire USA to target. Now, even thought the agent could get clients from anywhere in the US, they are wasting their money by trying to target such a large area. They should just be focusing on Des Moines or even a specific suburb in which the majority of their clients come from.
The cool thing about Geo-Targeting is that you can actually specific an exact area (down to a mile radius). So whenever you start running Facebook and Instagram Ads, it is always helpful to start running ads specifically in your neighborhood. This is especially helpful for service-based or brick and mortar businesses.
Another way you can use Geo-Targeting is by Geo-Fencing around your competitors.
Auto dealers do this all of the time. If they have competitors in three different suburbs, then they will geo-target those specific areas and serve ads to the people who are visiting their competitors in order to convince them to come to their business instead. This is a great stategy to use!
Sometimes with Geo-Targeting, you do actually need to go broader.
If you run an e-commerce store, targeting just your neighborhood isn’t going to get you the best results. Using Geo-Targeting to broaden your reach and opening up those new possibilities is really going to help your business! Just make sure to not make the Geo-Target too broad that you are wasting money.
If you are just getting started with advertising, Geo-Targeting is an easy way to help reach your target audience and increase your ROI.
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