On Friday, the official Google AdWords blog announced a new feature: demographic bidding. Basically, demographic bidding allows advertisers to target ads to users of a particular age group, gender or a combination of those factors.
Advertisers can use demographic bidding on contextual or placement targeted campaigns. The feature is restricted to certain sites in the content network such as MySpace and YouTube because Google uses the demographic data available on these sites to target your campaign.
For example, say you sold men’s hats and want your ads to be seen by 18-30 year old men. You could use the demographic bidding feature to eliminate wasting ad impressions on 18-30 year old females, or decide to raise your bids and increase the frequency with which they are shown to your core group of 18-30 year old men.
Overall I think demographic bidding should help to extract some more value out of the content network for advertisers who may have overlooked it in the past. If you’re targeting a very specific niche it could also help to improve your conversion rates or reduce your cost per sale.
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