Here you go! Hope this will help.
Test Objective: To determine if "Locations of Interest" targeting drives a higher volume of quality conversions at a lower Cost Per Acquisition (CPA) compared to traditional location targeting.
Test Hypothesis: We believe that creating an AI Max for Search campaign using "Locations of Interest" will generate more conversions from high-intent, out-of-market users than a traditional campaign using manual location-based keywords.
Campaign Setup & Naming Convention:
To ensure a valid A/B test, you should run two separate campaigns with a 50/50 budget split for a set duration.
Campaign A (Control): Your existing campaign using traditional geo-targeting methods (e.g., "Presence" targeting and manual keywords with location names).
Campaign B (Test): A new AI Max for Search campaign using the "Locations of Interest" feature. It should target the same geographic areas as your control campaign.
Note: Ensure all other variables are as consistent as possible, including bidding strategy, budget, and landing pages. This isolates the change to the new targeting feature.
Key Performance Indicators (KPIs):
Track these metrics side-by-side to get a holistic view of performance.
1. Performance KPIs (Top Priority):
Conversions: The total number of leads, sales, or other valuable actions.
Cost Per Acquisition (CPA): How much it costs to get a single conversion.
Conversion Rate (CVR): The percentage of clicks that result in a conversion.
Conversion Value / ROAS: For e-commerce, this is the most important metric to ensure profitability.
2. Efficiency & Engagement KPIs:
Clicks & Impressions: To understand the volume and reach of each campaign.
Click-Through Rate (CTR): To gauge how relevant your ad copy is to the audience found by each targeting method.
Cost Per Click (CPC): To see if the new targeting method is more cost-efficient on a per-click basis.
Reporting Layout:
A simple, side-by-side reporting layout is best. You can build this in a simple spreadsheet, Looker Studio, or a custom dashboard.
Run the test for at least 2-4 weeks or until you have statistically significant data (typically 100+ conversions per campaign). Once the test is complete, analyze the results.
If Campaign B shows a better CPA and a higher conversion volume, you can consider pausing the control campaign and scaling up the new AI Max campaign.
If Campaign A wins, you can pause the test and re-evaluate your strategy for future tests.