Google AdWords – Demographic Targeting

11-google-adwords-demographic-bidding-returns

This week I am going to talk about a quite interesting feature on Google AdWords. I researched the opportunity of demographic targeting as a tool to increase the efficiency of marketing . Searching the web (GOOGLE :D) I discovered a lot of different sources dealing with the topic as well as a bunch of advertisement tailored to my needs and preferences.

What is this post about ?

Topic : I am going to research the demographic targeting feature of Google AdWords

Question : because I want to find out what kind of new opportunities are offered by Google AdWords in relevance to marketing to specific customer groups

Practical Significance: so that those firms, can strategically advertise via google to relevant customer groups and therefore improve their marketing efficiency

How does demographic targeting via Google work ?

What information is collected ?

Reading about the opportunity of demographic targeting via Google I started out with the question what kind of data is used for the specification. I discovered the  AdWords Community is clarifies that the information collected contains data like age, gender, income, lifestyle, interest education and occupation and house hold size. All in all specific information to build up a profile and categorize the user to let him receive the most effective advertisement.

Where is the demographic information from ?

Going on asking myself how Google collects the demographic data used I found out that according to Google the information is collected from cookies, downloaded applications as well as from social networks like Facebook or (of course !) Google+ , especially the social networks are extremely valuable as they inform directly about age, gender and interests. Kristen Nicole states that sites collaborating with Google send the demographic data of their visitors to Google . She also explains that these companies need to inform about it in this in their terms of service.What I found especially interesting because I”ve never explicitly read the terms .

Why use demographic targeting with Google AdWords?

Google offers opportunities for market research

As Simon Yeoman reminds us not may years ago online marketing was only seen as a direct sales channel . But nowadays it is also effectively  used as a market research tool. Timothy Dwyer of the Reverse Review exaggerates that Google’s prepackaged tracking mechanisms provide the ability to “instantly become a statistical, performance marketing extraordinaire“. In fact I encountered a source called marketing land confirming the basic point of this statement by presenting the recently added statistic tools on Google AdWords. Like the gender and age report shown below.

Google-Display-Age-Reports-600x357The Google AdWords advertiser is now able to see valuable marketing information about age, gender and other significant facts in a neatly arranged table. One does not necessarily need to be a trained advertiser to handle the data. This is what makes the statistics of Google AdWords so attractive.

Reach Customer Group

As I saw  Google explains in their support section that the demographic function is thought to market product that are designed for a specific customer group as well as to advertise one and the same product differently to different target groups. An according example is given on quite interestig website called morevisibilty. For instance, if one is a college or university and knows that the audience tends to be students under the age of 18, one can set the campaign to show mostly to that audience, rather than showing your ads to people less likely to be interested in the web site.

Lower fees

Another important aspect is in my opinion the fact that according to Wordstream the per click fee decreases when the advertisement is targeted more specific as google wants to deliver the “perfect” advertisement to their search engine users.

What customer group should you advertise to ?

As brought to the point very wisely by Ryan in the Google AdWords Community : ”
small;“Learning about your target demographic should come before learning about demographic targeting.  That’s the best advice I can give. “. Without understanding who you want to market to the best marketing and statistic devices are totally useless. Even though every company has to find their own target group there are certain tips to be found on the internet . In it”s report Ebay implies that it is more useful to advertise to an audience that is not jet aware of the product. Simon Yoeman adds that there is a benefit if their target group uses the internet frequently.

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