Measuring Impact in Specific Cities & Expanding Facebook Geo-targeting

In the dynamic digital landscape of today, Facebook advertisements have emerged as a powerful marketing weapon for companies looking to increase sales and conversions. However, businesses often grapple with the challenge of quantifying their impact in specific cities and then scaling up that success across larger geographies. This blog will delve into the process of accurately measuring the influence of Facebook ads in location targeting and provide valuable insights on how to replicate and expand that success to a broader geographical reach.

Understanding the influence of Facebook ads in location targeting is crucial for businesses to allocate their marketing resources effectively. Here, we will explore key steps involved, including analyzing data on reliable analytics platforms, shortlisting the best-performing cities, and analyzing product sales within those Facebook geo-targeting. By leveraging Facebook Ads Manager and metrics such as ROAS and MER, businesses can evaluate the effectiveness and efficiency of their Facebook ads in specific cities.
Scaling up successful Facebook ad campaigns from specific cities to larger geographies requires a strategic approach. We will discuss horizontal and vertical scaling techniques, including adding more ad sets and targeting options, expanding the target audience, testing new creatives, and optimizing for conversions. Ongoing monitoring and analysis, as ad spending increases, will be emphasized to ensure continued success.
By following the step-by-step process outlined, businesses can accurately measure the impact of Facebook ads in specific cities and replicate that success across larger geographies. This will empower businesses to tap into new markets, expand their customer base, and maximize the potential of Facebook advertising.

Analyze The Data On Your Most Reliable Analytics (Ex. Shopify or Google Analytics)

Effective location targeting for your Facebook ads requires a thorough understanding of your customers' geographic distribution and preferences. By analyzing data from reliable analytics platforms like Shopify or Google Analytics, you can gain valuable insights into the best-performing cities and states for your business. This data-driven approach allows you to tailor your advertising efforts to specific geographic areas, ensuring that your ads resonate with the right audience in the right locations.

Not only does analyzing this data help you identify the cities and states where your ads perform exceptionally well, but it also provides valuable insights into your customers' whereabouts and the geographic areas that contribute the most to your sales. This understanding empowers you to make informed decisions about where to focus your advertising efforts and allocate your marketing resources effectively.
By leveraging this knowledge, you can optimize your Facebook ads to specific location targeting that drives the greatest sales and conversions for your business. This targeted approach ensures that you are reaching the most relevant audience in the cities and states where your products or services are in high demand, leading to increased engagement, higher conversion rates, and ultimately, improved business outcomes.

Shortlist the best-performing cities

Once you have analyzed the data, shortlist the best-performing cities/ exact location based on the revenue generated, conversion rate, or any other metric that is important for your business.

Move to analyze the product sale in that targeted location

After shortlisting the best-performing cities, it's important to analyze the product sale that came in through the Facebook users inside those cities. This can help you understand which products are popular in that geo-targeting and which products as well as the target people you should focus on advertising through Facebook ads.

Further Analyse The Data On Facebook Using Breakdown
Facebook breakdown allows you to break down the performance of your ads by location, age, gender, placement, and other criteria. This will help you measure the amount of money being spent on those cities in the last 3 months and the products, offers, and deals which were being advertised there. This further helps in analysing location targeting as well as target people which further helps in understanding the wide net of the target market to launch exact target ads.
ROAS (Return on Ad Spend) is a crucial metric for marketers that measures the revenue generated for every dollar spent on Facebook ads. Take note of the ROAS being reported by Facebook for those cities. This will help you understand how effective your Facebook ads are in those cities and what should be your target people as geo-targeting.
MER (Marketing Efficiency Ratio) is another important metric that measures the efficiency of your marketing efforts. It is calculated as the total net sales in that city divided by the total amount of money spent in that city. Take note of the MER for these cities in the last 3 months. This will help you understand how efficient your marketing efforts are in those cities and further the geo-targeting for the future.
Establishing the average MER or ROAS you have been observing in the last three months at an average daily ad spend will help you set a benchmark for your future campaigns. This will help you understand what to expect from your Facebook ads in terms of revenue generated for a given ad spend.

Scaling Up Campaigns In The Specific Location Targeting

Once you have established the benchmark, it's time to scale up your Facebook ads and take your success to the next level. Scaling up involves increasing the ad spend, expanding the Facebook geo-targeting, and testing new creatives and ad formats. By investing more in your ads, you can amplify their reach and impact.
Additionally, expanding your geo-targeting allows you to target new cities and regions, reaching a broader audience and tapping into new markets. To keep your ads fresh and engaging, continuously experiment with different creatives and ad formats, allowing you to optimize your campaigns and drive even greater results.

Scale up Horizontally

Horizontal scaling involves adding more ad sets and targeting options to increase ad spend. This can help you reach new audiences that you may not have targeted before. Here are some ways to scale up horizontally:

Adding more ad sets:
Create new ad sets with different targeting options, such as interests, behaviours, or demographics, to reach new audiences and boost ad spend.
Expanding the target audience:
Broaden your location targeting audience by incorporating new interests, behaviours, or demographics into your targeting options. This approach helps you connect with potential customers who may be interested in your products.
Testing new creatives:
Experiment with different ad formats, images, and copy to identify the most effective ads for your Facebook geo-targeting audience

Scale up Vertically

Vertical scaling involves allocating more budget to your best-performing ad sets or ads, thereby increasing the daily budget and enhancing the efficiency of your ad spend. Some ways to scale up vertically include:

Increasing daily budgets:
Boost the daily budget for your top-performing ad sets to maximize their impact and reach more customers.
Allowing the best-performing ad sets or ads to spend more:
You can use Facebook's automatic bidding feature (bid cap campaign) to automatically allocate more budget to your best-performing ads. This approach helps generate more revenue and increases the efficiency of your ad spend.
Optimizing for conversions:
Focus on optimizing your ads for conversions to drive more revenue from your Facebook ad campaigns. Utilize Facebook's conversion tracking tool to measure ad effectiveness and optimize your ads accordingly.

Scaling up your Facebook ad campaigns requires a strategic approach that combines both horizontal and vertical scaling techniques. By adhering to best practices, experimenting with new creatives, and optimizing your ads for conversions, you can effectively scale your Facebook ads to reach new audiences, generate more revenue, and maximize the return on your ad spend.

Analysing While The Ad Spend Went Up

It's important to monitor the performance of your Facebook ads while the ad spend is increasing. This includes monitoring metrics such as ROAS, MER, conversion rate, and revenue generated. The performance of your Facebook ads may change as the ad spend increases, so it's important to make adjustments as needed.

Keep monitoring KPIs
When you start scaling up the ad spend, it's crucial to keep monitoring the key performance indicators (KPIs) that you looked at before scaling up. These KPIs include the Marketing Efficiency Ratio (MER), Return on Ad Spend (ROAS), incremental revenue, and ad spend.
MER or ROAS might drop
When you scale up your ad spend, the MER or ROAS might drop as you start reaching new audiences or increasing the frequency set to run ads. However, you should focus on the topline revenue and measure the incremental effect of scaling up the ad spend.
Avoid deals or discounts
To get an accurate measure of the impact of Facebook ads, it's important to avoid offering deals or discounts while scaling up the ad spend. This is because deals or discounts can influence the buying behaviour of customers and skew the results of your analysis.
Evaluate the Feasibility of Scaling Up Further
After calculating incremental revenue and ad spending, determine whether it makes sense to continue scaling up your ad spend. Compare the incremental revenue generated to the incremental ad spend to gauge whether the cost of scaling up is justified.
Measure incremental revenue and ad spend
To measure the incremental effect of scaling up the ad spend, you should calculate the incremental revenue and ad spend that you generated as a result of the increased budget. Incremental revenue is the additional revenue generated as a result of the increased ad spend, while incremental ad spend is the additional amount of money spent on ads.

Bottom Line

In conclusion, accurately assessing the impact of Facebook ads in specific cities and effectively replicating that success across larger geographies demands a strategic approach and meticulous planning. By implementing the steps outlined in this post, you can not only measure the influence of Facebook ads in location targeting but also successfully expand their reach across broader by using the Facebook geo-targeting feature. This comprehensive strategy will empower you to harness the full potential of Facebook advertising, ultimately fueling your business's growth on both local and global scales.

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