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Low in Conversions? Try Setting Up IP2 Location Targeting

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July 12, 2024

IP2 location targeting utilizes geographic data derived from a user’s IP address to refine audience segmentation, this approach ensures that users receive messages that are more likely to appeal to their specific interests and needs, thereby increasing engagement and ultimately improving conversion rates.

In the landscape of digital marketing, businesses frequently encounter the challenge of low conversion rates in push campaigns. Often it is challenging to find the way for the ad formats to resonate with the diverse preferences and behaviors of different user segments.

To address this issue effectively, businesses can adopt IP2 location targeting as a strategic solution. IP2 location targeting utilizes geographic data derived from a user’s IP address to refine audience segmentation, this approach ensures that users receive messages that are more likely to appeal to their specific interests and needs, thereby increasing engagement and ultimately improving conversion rates.

Understanding IP2 Location Targeting

IP2Location is a non-intrusive IP location lookup technology that retrieves geolocation information with no explicit permission required from users. Every device connected to the internet is assigned a unique IP address, which serves as its virtual identifier. Through various databases and services, IP addresses can be mapped to specific geographic locations, ranging from country and region to city and sometimes even more precise details like ZIP code or ISP (Internet Service Provider).

How does it work?

In online environments, ad servers look at a user’s IP address to figure out their ‎location.  Behind the scenes, the ad server maintains a large database that has ‎every IP address already mapped to its country, state, and postal code.  So, 

  • when a ‎request comes in, 
  • the ad server strips the IP address from the header of the ‎request, 
  • queries this table, finds the necessary location data, and then picks an ad ‎that matches that criteria.  ‎

Now the ad servers don’t create this table themselves, they license it from another ‎company like whose primary business is geolocation ‎data. T

The first thing to do is figure out which ISPs own what IP ranges.  This is public ‎information, used so that an IP isn’t shared among many users across different ‎ISPs.  And since ISPs tend to serve a particular region, usually a country can be ‎assigned to the user with this information alone.

Now, figuring out state and postal codes involves a more complex process. At the ‎core though, the geolocation services build up a network of servers from which ‎they can send out pings, or connection requests, and known physical locations of ‎public entities like universities and government office IPs.  Eventually, with enough ‎data, the geolocation company has the capability to triangulate any IP on the web.   ‎

It works like this – if there is an IP address the company wants to locate, 

  • they ping ‎it from a few of their servers, for which they already know the location.  A ping is ‎just a way to test if a computer can connect, and how long it takes to do so but ‎doesn’t transmit any meaningful data.  
  • Then, by looking at the time it takes each ‎server to connect, it can establish a shared point or origin, and thereby physically ‎locate the user.  It uses the public IP locations to validate their approach and check ‎for anomalies in network latency which would lead to bad data.  ‎

List the common targets in IP2 Location (e.g., Commercial, Organization, Educational, Fixed ISP, Mobile ISP, Fixed/Mobile ISP).

Here the list of IP2 type you can find at OnClickA:

  1. Commercial - For businesses and corporations
  2. Organization - Non-commercial entities like government or NGOs.
  3. Education - Educational institutions such as universities.
  4. Fixed Line ISP - Providers of fixed-line internet services.
  5. Mobile ISP - Providers of mobile internet services.
  6. Military - This classification indicates that the IP address is associated with a military organization or network. It distinguishes these addresses from civilian or commercial uses.

The benefits of using IP2 Location targeting

IP2 Location targeting can be a powerful tool for businesses looking to improve their online presence. Here's how it can benefit you in three key ways:

1. Improved Relevance

The first key benefit lies in enhanced relevance. Imagine a clothing retailer presenting winter jackets to users basking in a tropical climate, IP2 targeting eliminates such dissonance. Businesses can curate website content, product offerings, and marketing messages specifically for the user's location. This ensures users encounter information directly relevant to their needs, leading to a more engaging and positive experience.

2. Reduced Waste

Second, IP2 targeting fosters efficiency by minimizing wasted resources.  Traditionally, advertising campaigns might encompass a broad demographic net, encompassing users with minimal interest in the product or service. By leveraging location data, businesses can focus their advertising efforts on a more targeted audience, maximizing the return on their investment. This not only saves on advertising costs but also streamlines operational processes by catering to a well-defined user base.

3. Higher Conversion Rates

Lastly, perhaps the most compelling benefit of IP2 targeting lies in its ability to drive higher conversion rates. When users encounter content and advertisements directly relevant to their location, they are more likely to engage with the website. This translates to increased browsing time, deeper exploration of product pages, and ultimately, a higher chance of conversion. Furthermore, the personalized experience fostered by location-targeted websites fosters customer satisfaction and loyalty, leading to long-term benefits for the business.

Setting Up IP2 Location Targeting in OnClickA

Step-by-step guide on how to enable and configure IP2 Location targeting in the OnClickA dashboard:

Step 1: Access Your OnClickA Account

Begin by logging in to your existing OnClickA account. If you're new to the platform, sign up for a free account to get started.

Step 2: Create a New Campaign

Once logged in, navigate to the section for creating a new campaign. This will typically involve specifying your campaign objectives and budget.

Step 3: Define Your Ad Format

After establishing your campaign goals, proceed to choose the ad format that best suits your needs. OnClickA might offer various options like display ads, video ads, or native advertising.

Step 4: Filling in the Campaign Details

Carefully fill out all the required sections within your chosen ad format. This will likely involve crafting compelling ad content, selecting targeting options beyond location, and setting your campaign duration.

Step 5: Choosing IP2 Location Targeting

As you progress through the campaign setup, be on the lookout for a section labeled "Other Parameters" or similar terminology. Within this section, you can choose your IP2 type, will it be Organization, Government, Mobile ISP, Fixed ISP, etc.

Step 6: Excluding VPN Traffic

Step 7: Optimizing Bids

The final step involves adjusting your bids based on the perceived value of the traffic coming from different locations.  Since user intent and conversion rates can vary geographically, strategic bid adjustments can maximize your return on investment.

Practical Tips for Implementation

Use Detailed Analytics

Don't just launch your campaign and walk away! Utilize OnClickA's analytics dashboard to closely monitor the performance of your location-targeted segments. Track key metrics like click-through rates (CTR), conversion rates (purchases, signups), and cost-per-acquisition (CPA) for different targeted locations. This data paints a clear picture of what's working and what needs improvement.

Combine with Other Targeting Options

IP2 targeting becomes even more potent when combined with other targeting options offered by OnClickA. Consider layering in demographics like age, income, and interests. You can also target by device type (mobile vs. desktop) and operating system. This multi-dimensional approach refines your audience and ensures your message reaches the most relevant users within your chosen locations.

Continuous Optimization

The online advertising landscape is dynamic, and user behavior can evolve rapidly. Don't get stuck with a static approach. Regularly review your campaign performance data and be prepared to make adjustments as needed. Test different IP location types (targeting by country, region, or city) and experiment with various combinations of targeting options. This ongoing optimization ensures your campaigns stay aligned with user behavior and maximize your return on investment (ROI).

Here is a hypothetical scenarios demonstrating the impact of IP2 Location targeting on campaign performance:

Scenario: Finding Local Love

Challenge: Many dating app users prioritize finding matches in their area for easy in-person meetups.

Solution: The dating app uses IP2 location to show users profiles of people within a designated radius.

Impact: Users see profiles of geographically close matches, increasing the chance of successful dates. This can be ideal for those seeking casual encounters or relationships focused on physical proximity.

However:
IP location might not be entirely accurate, especially with users on Wi-Fi networks.
It can limit the dating pool, potentially excluding interesting matches just outside the set radius.

Conclusion

In conclusion, IP2 Location Targeting emerges as a compelling solution for businesses seeking to conquer the ever-present challenge of low conversion rates in digital marketing campaigns. By strategically leveraging user geolocation data, marketers can craft targeted messaging and experiences that resonate with the specific needs and interests of their audience. This data-driven approach eliminates the inefficiency of generic campaigns and ensures that users encounter content directly relevant to their location. As you embark on optimizing your OnClickA campaigns,  consider integrating IP2 Location Targeting as a key component of your strategy.

Ready to take your OnClickA campaigns to the next level?  Integrate IP2 Location Targeting into your strategy and witness the uplift in conversions.  Don't forget to leverage the power of OnClickA's analytics dashboard to track campaign performance and refine your approach for optimal results.

We encourage you to share your experiences and any additional tips you have on using IP2 Location Targeting in the comment below. Let's  build a community of successful digital marketers!

 

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