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.
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