Serves Local Ads to International Visitors

When a local advertiser buys an ad in a local newspaper, they do so because they want to reach a local audience. That seems pretty clear. The local business has chosen to advertise in a local newspaper, magazine, or other printed media because they know it will be distributed within their community to people they hope to reach.

Now, do the same rules apply online? Does advertising on the website of a local media company allow you to reach a local audience? The answer: IT DEPENDS.

For example, I asked a few friends around the country to send me screen shots of what looks like when viewed from their computers. (Thanks!) Here is what they saw:

People in Cleveland see ads for W.A. Frost (a 12 hour drive for dinner) and Hamline University.

Cleveland CityPages

People visiting from Boulder, CO see ads for Bedlam Theater and the Minnesota Orchestra. Megabus doesn’t go to or from Colorado:

Boulder CityPages

And I grabbed this shot while in Vancouver, BC earlier this week that includes ads for the State Theater and Megabus: Viewed from Vancouver, BC

An interesting thing happens when local newspapers and magazines go online: their reach expands well beyond their local market. In many ways, that’s good thing. But local advertisers need to be aware of how this can effect the performance of their ads.

Business that depend upon people physically visiting their place of business suddenly find themselves running national and international ad campaigns while assuming they’re reaching the same demographics as the site’s print edition.

In some cases, local businesses probably would be interested in advertising to people outside the Twin Cities, but they’d probably want to pay a different rate for that type of traffic since the ROI would surely differ.

Local advertisers need to start asking questions about the geotargeting of their ads. Are their ads being displayed solely to people in their community? Or, are local advertisers paying for ad impressions served to people well beyond their geographic target markets?

Ad serving technology that allows for geotargeting of ad impressions has been available for years. I’m not sure if CityPages doesn’t have this technology in place or if they’re simply not choosing to use it.

I asked CityPages about their ad serving technology and use. Here are a few questions they did not respond to after previously being very responsive to questions regarding web traffic:

– What percentage of your website’s visits come from Minnesota? This can be found in Google Analytics by clicking Visitors > Map Overlay (the log the total) > United States (then log Minnesota’s total). Divide the Minnesota number by the total.

– Do you think your local online advertisers realize their ads are being shown to a national/international audience?

– Are they paying on a CPM basis for these ads? Is the rate the same regardless of where the visitor to the site resides?

– Do you have the ability to focus the geographic reach of ads? For example, could you set W.A. Frost’s ads to serve to just people in MN or the Twin Cities (I know the technology exists, but don’t know if you’re ad platform supports doing this)?

– Do you quote your site-wide traffic numbers to local advertisers, or do you quote them a reach that’s relevant to their business (metro, statewide, etc)?

– Does VVM [Village Voice Media] do any ad serving reciprocity between properties? For example, someone from Phoenix visiting could see ads that are local to Phoenix that have been sold by the Phoenix team.

I think the questions are fair and should be asked by anyone in the business of making online ad buys for local businesses.

How big of a problem is this?

CityPages’ Kevin Hoffman told me via email that “more than 50 percent of our traffic is local.” From a local advertiser’s standpoint, that would mean that less than 50% of their ad impressions are likely being served to people who are not local. How much less? Good question.

Traffic Quality

The tactics used by CityPages to drive traffic to their site will be the topic of a future post. For example, a CityPages blog called The Blotter (mentioned here when it’s author, Emily Kaiser, over-generously borrowed from this site), is rarely linked up in the local blogosphere and has less than 100 subscribers according to Google Reader, somehow managed to grow from 35,000 to 250,000 page views per month in just two months. If the site isn’t getting linked up locally, and hasn’t build a large subscriber base, where’s the traffic coming from? Tune in next Thursday to find out.

Local Media Money

Local media sites face an interesting predicament. Generally, you can charge a higher rate for ads you sell directly vs. what’s available through ad networks. So if local media sites only serve local ads locally, they’d likely see a significant drop in ad revenue potential over a large portion of their ad inventory. But serving higher CPM local ads to non-local businesses surely isn’t the right answer. Done enough, it will either lead to local businesses giving up on online advertising due to poor performance, or CPM deflation to get pricing in line with the value of an average ad viewer.

Summary: If you’re an online ad buyer for local businesses, make sure that you know to where the people are who are going to see the ads you’re buying.

10 thoughts on “ Serves Local Ads to International Visitors”

  1. I look forward to reading part 2. When I started up City Pages online blogging community in 2003, our very best traffic days came when Steve Perry wrote some original copy and Counterpunch would link to it. I may be misremembering some mega-hits days, but usually our biggest days amounted to no more than 5,000-7,000 uniques. Absent some unusual link in, the front page averaged one to two thousand visitors on good days, but we had lots of days of 700-800 uniques.

    So when I saw that Kaiser had taken CP’s “front page” blog from the numbers I used to get to 10x more, well, I was surprised to say the least. Back “in the day” blogs didn’t link to us because we were “corporate.” We also weren’t breaking a lot of news because the news folks were our laziest bloggers, steadfastly refusing to “get it.” (All they got was that they were supposed to write more for the same money.)

  2. Fair point, Chase. I suppose they could be selling based on a flat fee based on inflated traffic numbers (reporting all impressions rather than just relevant local ones), which would indirectly be a CPM based sale.

  3. City Pages writes great local stories and delivers a wide range of content. Users find them. It’s the world wide web, so yes all our traffic isn’t local.
    A part of that surely are the thousands of transplanted Minnesotans still interested in City Pages stories, and there are thousands of Twin Cities
    citizens who frequent national web sites.

    For the month of January, at least 78% of our traffic to comes from the Twin Cities metropolitan area.
    Traffic from represented 8% of our traffic over the last 30 days.
    It can range anywhere from 1 percent to 10 percent in a given month.

    Advertisers are most interested in two things. They want a quality
    environment, and a great return on their investment. City Pages offers
    excellent rates, primarily based on cost per thousand. But most
    importantly, we consistently deliver high click through rates.

    City Pages intends to increase response for our advertisers even more
    when we launch geotargeted advertising in the beginning of February.

  4. Mark, it’s great to hear that CityPages is going start geotargeting advertising. It’s the beginning of February now, so when can we expect to see this change implemented?

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