Im using geo-targeting for local campaings combined with national campaign. Is geotargeted ads cheaper than national if the hit? See my example This is my setup for my question Local Campaign city Oslo keyword broad: buy house Oslo ads: Buy house in Oslo.... VS National Campaign norway keyword broad: buy house Oslo ads: Buy house in Oslo.... Is local campaign always preferred before national (if everything else the same) ? Since IPs are not always correct I have traffic in both campaigns but my questions is if the local campaign always should have the traffic if the user is in the local area?
No matter what geographical targeting you have, ads are ranked based on bid and quality. Learn more in the Adwords FAQ.
"Is geotargeted ads cheaper than national if the hit?" No, the CPC will be the same if your setting is local customized or national. The CPC is determined by the number of advertisers at any given auction, their Bids, Quality Score, aka Ad Rank like Lucid said. "Since IPs are not always correct I have traffic in both campaigns but my questions is if the local campaign always should have the traffic if the user is in the local area? " Don't worry about that, if you truly have a local service, I recommend still use local setting because you can put a local address underneath the Display URL to make it more relevant to the user. Additionally, if you use local setting and bid on BROAD keyword: buy house, you can safely run the campaign targeting residents in Oslo. Of course, do some negative keywords research as well. However, you won't want to run a national campaign bidding on BROAD Keyword: buy house, because your ads will be shown to users living in other areas as well. So using local setting will actually allow you to bid on more keywords than a nationwide setting and bring you more traffic because you can only bid on geo keywords with a nationwide campaign unless you put Gazillions negative keywords in the adgroups, which is crazy.
Thank both for good comments. I thought I could lower my CPC if I had local campaigns since in some areas (we are a nationwide company) there is not that much competition. But I was wrong obvisously. When I created a rapport for both my campaigns I saw that I had clicks on the same keyword (in this example buy house oslo). Does that mean that my users that are local are using IP that not are translated as local IPs. (actually im not selling houses its searches on specific stores that only a local user would mind searching for)