The Most Overlooked Factor
You can have the best offer, the best landing page, and the best follow-up system. But if you're targeting the wrong geography, you'll fail. Here's how to pick winning markets.
Market Size Matters
Too Small: A city of 50K people might only generate 10-20 leads/month. Not enough volume to test or scale.
Too Large: Major metros (LA, NYC, Chicago) have insane competition. CPCs are 3-5x higher than secondary markets.
Just Right: Cities of 200K-800K people (Des Moines, Tulsa, Boise, Greenville) have:
- Enough volume (50-200 leads/month per vertical)
- Lower competition (fewer lead gen operators)
- Lower CPCs ($3-8 vs. $15-40 in major markets)
- Higher close rates (less buyer sophistication = less competition for end customers)
DMA vs. City vs. Zip
DMA (Designated Market Area): TV market boundaries. Good for broad awareness campaigns but too large for performance marketing.
City: Best for most campaigns. Clear boundaries, manageable scale.
Zip Code: Hyper-targeting. Use for high-income areas or specific neighborhoods.
Income and Demographics
Not all geographies are equal. A roofing lead in a $40K median income area converts at 3%. Same lead in a $90K area converts at 15%.
Target areas with:
- Median household income > $65K
- Homeownership rate > 60%
- Median home age > 15 years (for home services)
- Population growth > 2% annually
Testing Strategy
Start with 3-5 cities in the same state or region. Run $500-1K per city. Double down on winners, cut losers. Expand geographically once you have a winning formula.