Setting Geo-Targeted Bids and Budget

By identifying the right cities to focus your marketing efforts on, you can increase your chances of success and build a strong, loyal customer base. From analyzing hundreds of consumer brands, we learned that customer lifetime value can vary by as much as 82% by city. There is a strong correlation between the purchasing power of certain cities and the resulting LTV.

This means you can afford higher customer acquisition costs for customers from certain cities, knowing that these customers will generate much higher average revenue over their lifecycle. At the same time, you should reduce budgets for cities where only low-quality customers are waiting.

Identify Your Most Valuable Locations

The Best Locations report helps you to understand the quality of your new customers based on the city they're located in. The LTV 1 Year indicates the value added per customer within the first year - after cost of goods sold - and reveals that some cities outperform others by more valuable customers.

Adjust Customer Acquisition Cost

After you know the value of your customers, use this insight to adjust the target CACs for the cities according to the LTV differences of the three groups; you should aim for a 3:1 LTV to CAC ratio. This way, you can multiply the quality and revenue of your customers with the same advertising budget and know which audiences to scale first.

We'll walk you through the process of adjusting bids and budgets on the following platforms:

1. Meta

2. Google

3. TikTok

4. Pinterest

Meta

1. Log in to your Meta Ads Manager and select the campaign you want to adjust.

2. Click on the Ad Set level and navigate to Audience > Locations.

3. Here, you can choose to target specific countries, regions, cities, or even specific addresses. Group all locations for which you want to increase spending.
   
   
    

4. Once you've selected your desired locations, click on the Edit button of the ad set.

5. Adjust the Cost per result goal based on the average LTV of customers from those locations. You can increase or decrease the cost compared to the default amount.

6. You can also set a bid cap to control how much you're willing to spend on these locations.

7. Finally, click Save to apply the changes to your campaign.

Google Ads

1. Sign in to your Google Ads account and select the campaign you want to modify.

2. Navigate to the Settings tab and click on Locations.

3. Choose the desired locations you want to target by searching for countries, regions, cities, or custom areas.

4. Once you've added your locations, click on the Bid adj. column next to each location.

5. Adjust the bid adjustment percentage based on the performance and value of each location. Increase or decrease the percentage to raise or lower the bid.
   
   
    

6. You can also set a bid adjustment range if you want to control how much the bid can be adjusted automatically.

7. After making the necessary changes, click Save to apply them to your campaign.

TikTok

1. Log in to your TikTok Ads Manager account and select the campaign you want to edit.

2. Click on the Ad Group level and navigate to Targeting > Demographics > Location.

3. Choose the desired countries, regions, or cities you want to target by searching or selecting from the available options.
   
   
    

4. Once you've added your locations, adjust your bid strategy for this ad group.

5. After making the necessary changes, click Save to apply them to your campaign.