SearchMarketingNow is writing about geo-targeted PPC. Geo-targeted PPC is great, assuming you have a geo-targeted product.
However, you’re potentially missing out on a lot of great traffic if you’re only buying the term “shoes”, geo-targeted to Chicago, IL if you’re in the shoe business. There’s going to be some extra traffic available from “chicago shoes”, since Google doesn’t always get geo-targeting right.
Also, and more importantly, your bids may be a lot higher. This has to do with the expensive nature of 1 word terms, such as “shoes”, even when they are geo-targeted.
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