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Paid Search Experiment using Demographic Targeting - MUST READ!

Jeff Kershner

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May 1, 2005
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Did you happen to catch @mwpistell 's post over on the blog last week? Mike put together an interesting experiment around Trucks, Demographics and Paid Search. It's quite an interesting experiment...

The goal of his experiment was to lower CPA while increasing conversion volume for one of his volume Truck dealers. To accomplish this, he utilized AdWord’s Demographic targeting and here is what he got...

*be sure to read the full article over on the blog first, then make your way back here to comment.

The Experiment

He used a set of rules that each campaign must followed to help determine the winner:

1. Create 4 identical Truck campaigns, each with the same targeting, bidding, setting's and ads.

2. Separate the 4 campaigns by adding Demographic targeting. Target by household income tier.

a. Campaign #1: Top 10% Income

b. Campaign #2: 11 - 20% Income

c. Campaign #3: 21 - 30% Income

d. Campaign #4: Lower 50% Income​

3. Run for six weeks.

4. Analyze results to determine which experiment exceeded the control in conversion volume and CPA.

Once the top performing campaign is determined he was able to then scale it and pause the other experiments.

The Results

The Top 10% earners are the runaway favorite when looking at conversion data. An impressive 156 converted clicks, and a conversion rate that’s more than double the experiment average of 4.23%! In fact, the converted click volume for the Top 10% is greater than all the other demographics combined.

dr-view-finalrates.png

What do you think?
Are you utilizing Demographic targeting within Paid Search Campaigns?
 
The goal of his experiment was to lower CPA while increasing conversion volume for one of his volume Truck dealers. To accomplish this, he utilized AdWord’s Demographic targeting and here is what he got...

Great business logic and focus. This work reveals how to sell more cars by looking past CPC alone.

I'm one proud papa. :unclejoe:
 
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