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DMS Success Story: Custom Geo-Targeting

DMS Success Story:

Employing Custom Geo-Targeting to Produce Campaign Efficiencies 

Background

A brand with 13 locations was using a typical geographic approach: targeting based on a standard mile radius around each location. Though common and simple to set up, it was not delivering optimal results. 

Challenge

Analyze and optimize campaigns to boost the conversion rate.

DMS Solution

To ensure generation of only the inquiries with the highest propensity to convert, Digital Media Solutions (DMS) made strategic zip code cuts, based on conversion performance, for both pay-per-inquiry (PPI) and pay-per-click (PPC) campaigns.

Strategic geo-targeting is an essential tool for both brands with location-based targets and national consumer bases. The marketing analytics team at DMS used a cutting-edge geographic information system (GIS) to analyze marketing performance and generate custom geo-targeting strategies. The complex rejection and validation rules of Sparkroom performance marketing technology supported these optimizations, ensuring we attracted only our target audience without wasting media dollars on inquiries less likely to convert. 

Conversion Rate by Distance from Location:

Conversion rates are not linear as you increase the distance from a brick-and-mortar location.

 

 

 

 

 

 

Conversion rates differ dramatically by location and, in most cases, do not gradually decrease. The individual market lines bounce up and down across distance categories, in contrast to the linear decrease we typically see when charting inquiry volume by distance. Distance is not the only factor of conversion rates, nor is it the only geographic factor. Variables such as population density, transportation infrastructure and demographic factors impact conversion rates.

Heat Maps: Conversion Concentration Varies by City (Each map displays a 60-mile radius)

Results

Deploying custom geotargets for each location lowered media spend by 17-25% across all the campaigns. At the same time, because we had hand selected the geographies with the greatest propensity to generate high-quality leads, we boosted the overall conversion rate for the brand by 76%.

Want to learn more about the benefits of geo-targeting? Contact DMS to get started.

About the Author

Digital Media Solutions

Digital Media Solutions, LLC (DMS) is the leading global martech company leveraging innovative, performance-driven brand direct and marketplace solutions to connect consumers and advertisers. DMS deploys a robust database of consumer intelligence and leverages massive proprietary media distribution to provide customer acquisition campaigns that grow businesses. Continuing to experience explosive year-over-year growth, DMS has been continuously recognized on the Inc. 5000 list, securing its sixth consecutive ranking in 2019, and the Entrepreneur magazine 360 list. Earlier this year, DMS announced it is anticipating becoming a public company under a reverse merger deal with Leo Holdings Corp. Named one of America’s “Best Places to Work” by Inc. magazine and awarded the Excellence in Lead Generation Award by the LeadsCouncil, DMS brings together some of the industry’s most knowledgeable people, efficient processes and sophisticated technology across the digital marketing spectrum. For more information about DMS, visit digitalmediasolutions.com.

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