May 14, 2019
The Ultimate Guide to Google Ads Smart Bidding
AdWords allows you to add bid modifiers for income levels to target ads to searchers based on IRS income data by zip code. This feature allows you to target users who are most able to afford your offering, which can be particularly helpful for lead-gen advertisers targeting high-income searchers.
Analyzing lead quality or SQL (sales qualified lead) performance by income level is a bit more complicated than pulling a pivot table, but the benefits of narrowing your targeting to focus on top-performing income segments can reap big rewards. Depending on your tracking set up, you will likely need to test two separate campaigns – one for high-income tiers and one for low-income tiers – against each other to compare SQL data.
Once that’s done, you can evaluate SQL performance in each income category and adjust bids to favor stronger-performing demographic categories. In this example, performance is much stronger in the high-income segment, so you should implement bid adjustments to reduce your exposure to the low-income segments and refocus your spend on the highest income tiers.
If you’re already investing in a CRM system to track front-end lead performance, then don’t just stop at campaign-level bid and budget adjusts. Put your data to work to refine your targeting and drive even more SQLs from your paid search efforts.