When it comes to getting the most return on investment (ROI) from your PPC marketing, thoughtful targeting and strategy make all the difference.

Hyperlocal targeting helps companies get the most out of every dollar they spend because it ensures that the messaging and the people reading it are so precise, right down to the ZIP code in which they live.

Why Hyperlocal for PPC Targeting Matters

There’s no doubt that large geographic targeting can work wonders for boosting traffic. But it’s often a waste of impressions and focuses more on awareness than on conversions. Conversions are what most businesses ultimately want, whether that’s sharing an email address to continue the conversation or completing an e-commerce purchase.

WordStream found that small businesses with ineffective targeting routinely waste 25% of their PPC budget. On the flip side, the research also found that 76% of businesses are satisfied with their PPC advertising tactics. And almost half of those businesses plan to invest more in PPC.

So while brands routinely waste money on poor geographic targeting, studies also show that local targeting impacts consumer decision-making. Think with Google found that consumers are 72% more likely to act on ads that feature local information.

So ultimately, why does hyperlocal targeting in PPC matter? Because it reduces ad waste and increases consumer response to the ad.

Hyperlocal PPC Strategies for Better Targeting and ROI

Armed with information about the importance of hyperlocal advertising, let’s dig into how to use this tactic in your next campaign.

1. City-level Targeting

When it comes to hyperlocal, starting with city targeting can help companies explore targeted ad performance. Just be aware that some businesses might find that this targeting is still broad and requires some exclusions. 

For example, a landscaping company focused on meticulous lawn care at premium prices likely won’t sell well in neighborhoods where the property size is small or the income level is lower.

And within a city, there is likely a great diversity of income levels and home values. Excluding those neighborhoods that can’t afford a comprehensive service will improve ROI for your ads.

Beyond location exclusions, you can also set your bid by location. If a suburb has been quite successful for you, consider increasing your spend in that area to reach the audience you know is primed for your messaging.

2. ZIP Code Targeting

ZIP codes are slightly more specific than cities are when it comes to PPC targeting. Brick and mortar stores often find that ZIP codes give them a reasonable radius around their business to bring in new visitors from.

Consider medical practices and how far someone might be willing to travel for such services. Generally, people choose providers close to their home or work to make appointments easier to get to.

A dental office can use ZIP code targeting to reach potential patients within about a 10-mile radius in most instances.

Companies that target PPC ads by ZIP code also find that such targeting aids in tailoring ad copy to the specific neighborhood to make the ad feel especially compelling and relevant.

3. Proximity Targeting

While cities and ZIP codes offer some targeting parameters for a business, setting a specific radius for ads offers even more control over who will see your ads.

For example, a new pastry shop downtown might want to start its advertising with a 1-mile radius, the ideal walking distance to reach the shop. And as it grows, it can expand that target mile by mile to grow its customer base.

Such a tactic takes advantage of quick (inexpensive) wins while leaving room for growth as word-of-mouth begins to do some of the broader marketing for the business.

Using Exclusions in PPC Strategically

There’s a fine line between targeting your ads strategically to reach the ideal audience and going overboard to where few people see your ads. 

Overlimiting your target audience backfires by not delivering the business results you’re looking for within a set period.

Use exclusions carefully by following these expert tips.

Engage Exclusions Wisely

Most marketers think in terms of the audience they want to see their ads. And while that’s a good start, you have to think next about those who you don’t want to see the ads.

This is especially helpful in the case of casting a wider net to start, such as when using city targeting. Be sure to layer on exclusions that wouldn’t be a good fit for your business.

Use All Data Available to You

Before you launch your hyperlocal campaigns, spend some time with all the analytics you have. This might include:

• Addresses for existing customers
• Past PPC reports
• Website data reports
• CRM stats on customer value, overlaid with addresses
• Conversion rates based on location

Your existing customer data is an immense asset to achieving the best ROI on a new ad campaign.

While this is tedious work, the payoff is well worth it. Don’t skip the planning phase of your marketing tactics.

Adjust Bid Strategy Throughout Campaign

As your ads run, you’ll start to get even more data to optimize your campaigns. So long as your ads have a conversion action tied to them, you can view what hyperlocal areas or ad messages have the highest ROI.

Use that data to further refine your ad strategy by adjusting your bids based on that performance.

Take Advantage of Day Modifiers

If your pastry shop closes on Mondays and Tuesdays, you obviously don’t want to run your ads on those days. But there are time modifiers that might not be as apparent until you have ad data to work from.

Look at the best performing times of day and eliminate the lowest performing times of day. Generally, the best times of day are midday and evening when customers have a little free time to explore information.

Also, if you’re unable to take phone calls outside of business hours, consider reducing or eliminating spend during that time.

Focus on Real-World Attribution (Without Relying on Flawed Tracking)

One of the biggest challenges in hyperlocal PPC is connecting your online campaigns to what actually happens in the real world. Google’s in-store visit estimates and “How did you hear about us?” surveys are often inconsistent and unreliable.

Instead of trying to perfect offline tracking, focus on measurable and repeatable signals that show how your advertising drives real business results.

• Track high-intent actions like calls, form submissions, quote requests, or chat inquiries, and label them by location or campaign.
  
• Use dynamic call tracking to identify which ads or keywords generate the most phone leads.
  
• Sync your CRM or point-of-sale data with your ad platforms whenever possible. Even a basic import of customer emails, phone numbers, or ZIP codes can show which areas and campaigns produce your best customers.
  
• Compare ad data with local business trends such as store traffic, bookings, or revenue by ZIP code to understand which areas respond best.
  

You don’t need every conversion tracked to make smart decisions. What matters most is collecting a few reliable data points that clearly show where your marketing is working so you can double down on what delivers results.

Incorporate Location Extensions

An often overlooked option with Google Ads is the location extension. This enables customers to see your address and get directions from your search ads.

You want to make it as simple as possible to take the next step with your business. Extensions allow you to display a phone number, business hours, your address and your Google reviews rating.

Using this information can improve your conversion rates, which is the most important metric for your ads. Before engaging in location extensions, be sure that your Google My Business profile is accurate and up to date. And consider adding a few photos to make your profile come to life.

Take Advantage of Google Local Service Ads

These ads are not available to all businesses, but more than 100 services are included. Check to see whether your business’s services are one of them.

For businesses that qualify, these ads allow you to appear at the top of Google search results, which is increasingly challenging with the competition that exists on Google Ads.

The largest setback to using Google Local Service Ads is that you have to go through a complex verification process. But once you do it, you’ll further establish credibility and trustworthiness with your online audience.

Chat with the Hyperlocal PPC Experts

Whether you own a carpentry business, outfit homes with security systems or operate a local establishment in Columbus, Ohio, Two Wheels Marketing can help you reach your audience with PPC ads.

You don’t need a massive budget to see impactful results from your city or ZIP code. We’ll use hyperlocal strategies to:

• Maximize your conversions based on your budget
• Reach the audience most likely to convert
• Tailor messaging to match a neighborhood’s identity
• Help you determine the micro-areas that provide the greatest value
• Scale advertising success with neighboring zones and similar markets

Let’s talk about your marketing needs and how Two Wheels Marketing can improve your ad results and ROI.