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Guide To Local PPC: How To Effectively Target Local Customers

Discover how local PPC can boost your business, drive targeted traffic, and increase visibility in your area with cost-effective, location-based campaigns.

October 17, 2024
Written by
Matt Lenhard
Reviewed by

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If you're a small or local business looking to grow, having a strong digital marketing strategy is essential. While organic search engine optimization (SEO) is often the first tactic businesses think of, it may take time to see results. For faster visibility and immediate traffic, local pay-per-click (PPC) strategies can be a powerful tool. This blog post will dive into what local PPC is, how it works, and how your business can benefit from this advertising model.

What Is Local PPC?

Local pay-per-click (PPC) advertising is a digital marketing technique where you bid for ad placements on search engines like Google or Bing, specifically targeting your local market. Unlike traditional PPC campaigns that aim for national or global markets, local PPC zeroes in on people in a specific geographic region, such as a city, town, or neighborhood.

The most common form of local PPC ads are Google Ads and Bing Ads. Typically, these ads appear at the top of the search engine results page (SERP) or in the maps section when users search for local services such as "plumber near me" or "coffee shop in [city]." Businesses only pay when someone clicks on their ad, allowing for more budget control without sacrificing visibility.

Why Is Local PPC Important for Small Businesses?

Local PPC is particularly useful for small businesses that operate within a specific geographical location. Here are a few reasons why local PPC is vital:

  • Targeted Traffic: Your ads are shown only to users who search for relevant local terms, ensuring your target audience sees your message.
  • Budget Flexibility: PPC allows businesses to set daily or monthly budgets, ensuring spending never exceeds what you can afford.
  • Immediate Results: Unlike SEO, which can take several months to show results, PPC campaigns generate immediate traffic once they are live.
  • Competitive Edge: If you're competing against larger local businesses or national chains, well-optimized PPC ads can place you alongside them in search results, leveling the playing field.

Setting Up a Local PPC Campaign

Starting with local PPC may seem daunting, but the process can be made simpler with a structured approach. Below are the key steps to setting up an effective local PPC campaign.

1. Define Your Goals

Before creating your campaign, clearly define your objectives. Do you want more website traffic? Are you aiming to increase phone calls to your business or drive foot traffic to your store? Depending on these objectives, you will need to choose different strategies and set up your conversion tracking to measure success effectively.

2. Keyword Research

Research specific keywords that local customers are using to find your business. Let’s say you own a bakery in Dallas, Texas; your potential customers might search for "Dallas bakery" or "best cupcakes in Dallas." Use tools like Google Ads' Keyword Planner to identify high-converting, localized keywords.

3. Write Compelling Ads

Once you've done your keyword research, it’s time to write compelling ad copy. Your ad should highlight your unique selling points (USPs) while keeping the local aspect clear. For instance, instead of a general "Best Bakery in Town," try something like "Best Bakery in Dallas - Visit Us Today!" Ensure that the ad copy reflects your location and appeals to local customers.

4. Location Extensions

By enabling location extensions in Google Ads, you can display your business address with your advertisement. This makes it easier for local customers to find you, especially when they're using mobile devices. Location extensions can significantly improve click-through rates and drive foot traffic to your establishment.

5. Set Bidding Strategy and Budget

You should also set your daily or monthly budget and bidding strategy. If you're just starting, it’s usually wise to go with automated bidding options in Google Ads, such as "Maximize Clicks" or "Target CPA" (Cost Per Acquisition). However, for more advanced users, manual bidding may allow greater control. Setting a conservative daily budget means you won’t overspend in the early stages while you’re still testing your ad performance and optimizing for better results.

Types of Local PPC Ads

Several different types of PPC ads are most beneficial for local businesses. Let's explore these ad formats:

Ad Type Description
Search Ads These are text-based ads that appear at the top or bottom of search engine results pages when users search for relevant local keywords.
Display Ads These are visual banner ads that appear on websites relevant to your local demographics.
Google Local Services Ads These ads are specifically designed for local service providers. They allow you to appear in Google's "Local Services" section, which is prioritized in search results and maps for services like plumbing or electrical work.
Video Ads These ads appear on video platforms, such as YouTube, and can be highly targeted toward a local audience.

Optimizing Your Local PPC Campaign

1. Focus on Mobile Users

The majority of local searches are performed on mobile devices, especially “near me” searches. According to Search Engine Land, nearly 60% of all online searches come from mobile devices. Therefore, it’s essential to optimize your PPC ads for mobile using responsive design, mobile-specific ad copy, and ensuring fast-loading landing pages.

2. Utilize Geo-Targeting

You can narrow the targeting of your ads even further by applying geo-targeting at a granular level. For instance, you don't have to target an entire city if you operate primarily within a specific neighborhood or area code. Google Ads allows you to focus your campaign on specific geographic areas, and you can exclude irrelevant areas to avoid wasting your budget.

3. Monitor Ad Performance

Regularly monitor key metrics like click-through rates (CTR), conversion rates, and cost-per-click (CPC) to gauge the performance of your ads. Based on this data, make adjustments to your keywords, ad copy, and bidding strategies. Don’t forget to track offline conversions, such as phone calls and store visits, to get a fuller picture of the ad's effectiveness.

Top Tools to Boost Your Local PPC Campaign

There are several tools available that can help you improve the results of your local PPC advertising efforts:

  • Google Keyword Planner: Helps you research trending keywords, their search volumes, and competitiveness, ensuring your ads are targeting the right people.
  • SEMrush: A digital marketing toolkit offering keyword research, PPC campaign auditing, and ad tracking features.
  • SpyFu: Enables competitive analysis, letting you see and learn from your competitors’ keyword and ad strategies.
  • CallRail: Helps you track phone calls that result from your PPC ads, offering insights into customer behavior that can help refine your campaign.

The Future of Local PPC

The landscape of local PPC advertising is continuously evolving with new technologies and adjustments in consumer behavior. For example, voice search is becoming more prevalent, meaning your local PPC strategy may need to include voice-friendly keywords. Additionally, as Google continues to emphasize local search results with features like the "Local Pack" and Google My Business integrations, future campaigns will likely need to focus even more on proximity and personalization.

Another development on the horizon is the growing importance of automation and AI in PPC campaigns. More sophisticated automated bidding strategies and audience targeting options are likely to become even more critical for optimization. Keeping up with these trends will ensure your local PPC campaigns stay competitive in the ever-changing digital landscape.

In conclusion, if your business serves a local community, investing in a local PPC strategy can drive targeted traffic, generate immediate results, and help you stay competitive. By understanding how to set up a campaign, choosing the right keywords, monitoring performance, and optimizing for long-term success, local PPC can be a key ingredient in your digital marketing strategy. To keep growing, you must stay updated with the latest industry trends and use the right tools to ensure your PPC efforts remain effective.

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Matt Lenhard
Co-founder & CTO of Positional

Matt Lenhard is the Co-founder & CTO of Positional. Matt is a serial entrepreneur and a full-stack developer. He's built companies in both B2C and B2B and used content marketing and SEO as a primary customer acquisition channel. Matt is a two-time Y Combinator alum having participated in the W16 and S21 batches.

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