Demographics are the ‘characteristics of a human population and population segments, especially used to identify consumer markets’ (Answers.com). They can be categorised in a number of ways, be it, age, gender, income, marital status, interests, ethnicity, children per household and purchasing history. The idea of being able to fully optimise PPC campaigns to any, or all of the above would have search marketers jumping for joy. This desired level of targeting is currently far from a reality.

Paid search is evolving continuously, not a week goes by when there isn’t an update from one of the engines, be it a small tweak to an existing function, to something that gets the whole industry talking, such as the Google conversion optimiser or their decision to allow competitor brand bidding. The demographic targeting topic pops up every now and again, only to fall off the radar completely for months on end. Why is this? Is it because the current demographic targeting capabilities are too small to make a noticeable impact on search results?

The search engines are in a constant battle with one another for click share. All engines ensure that the clicks they do provide are of high quality, Microsoft and Yahoo now both opt to use a quality score component within their auction model in the wake of Google’s success, testament to the importance of click quality. If the click quality isn’t there, then the advertisers aren’t there either. All engines are looking to improve their traffic quality and demographic targeting is one way.

Google currently offer demographic targeting via the content network, allowing you to increase bids for desired age or gender groups, even including the option to not show ads to certain demographics, for example a male shaving gel brand opting not to show their ads to women. This targeting is only compatible on content network sites that have a login capability, such as Myspace, Friendster and PictureTrail, where Google is able to match ads to user profile details. Demo-targeting isn’t currently available on the search network – but if it was, the potential for result improvements could be huge. Google’s ever increasing array of products (Gmail, Google Docs, Google Calendar, Adwords etc..) means users are more and more likely to be logged in to a Google product at any given time, allowing the engine more chances to target users. Will Google ever expand their demographic offering to the search network? Microsoft and Yahoo (currently US only) both rely on users profile data before demographic targeting can work, like the Google content network targeting offering, they have the ability to increase bids for specific age and gender groups.

From a search engine perspective, demographic targeting has the potential to decrease click volumes and ultimately revenue if they provide click traffic that is targeted too well. Many PPC campaigns are as sophisticated as they have ever been, some having already hit a point of diminishing return and are at their optimum investment level. These advertisers could potentially reduce search engine investment as (if) demographic targeting advances further, they are able to gain the same levels of conversions at a lower cost. The search engines have to balance the benefits of providing quality traffic with the reduction in investment that could eventually come about. There is also the ever sensitive issue of privacy concerns to consider – could this be a barrier to developments as users become increasingly aware and concerned about online targeting.

At uniquedigtial we are aware of all the targeting options offered by the engines, be it geographic, day parting or demographic. No two search campaigns are the same and we use a range of targeting methods to ensure the most efficient PPC campaigns are achieved.

The potential for search engine demographic targeting is huge. But it is in the interest of the engines to reach this potential? As an agency committed to return on investment, we certainly hope advancements continue to be made.

Stuart Bryce, uniquedigital, London