Remarketing Optimization – What does it mean, why is it important and is it worth it to implement the strategy?
Remarketing is one of those words that many marketers throw around as a cool buzz word but don’t actually do much with the capabilities of remarketing to help their clients use it to its full potential. If you’re not familiar with remarketing it’s essentially tagging a persons web browser when they visit your website so you can target them with further advertising later. The idea is that the ads will be more effective knowing that a person has been to your website before. For the most part they are effective, however, we’ve seen too many clients and agencies simply serve people the same ads that take them to their homepage.
Without getting too technical in this article, you essentially create a remarketing list, which is a list of people who have been to your site, and then use that list to serve them ads after. I’ve seen way too many lazy agencies create one master list, show their clients that they’ve served remarketing ads to their customers, and that’s about as deep as they go.
When we run remarketing campaigns we like to have many different types of lists and qualify visitors to these lists based upon activities or pages they’ve seen on the website – then serve them ads that will be more relevant. The ads are tailored to them based upon what they have or haven’t done.
For example, let’s say you sell skis and ski boots. If you have a customer who visited your website and purchased skis but nothing else, you might then put them into a list of customers who could be interested in boots or accessories for skis. It would then make more sense to remarket ads for ski boots as opposed to serving that list an ad for skis which they’ve already purchased. In addition, they’ve purchased from you before so they are far more likely to buy from you versus someone who visited your site but didn’t purchase anything.
Remarketing Optimization Case Study
As a Google Partner Agency, we gather and trust the data to either confirm these statements or light up other strategies that we may not have thought about. In this respect, data is king and the ability to read it can make a huge difference in how successful a remarketing optimization campaign can be.
So, I thought I’d share some data from a campaign that we worked on for a retail client that supports and demonstrates how effective remarketing optimization executed properly can reap solid results.
For this particular retailer, we ran a local campaign to drive both online sales and to drive store visits to their physical store location. Our remarketing advertising promoted online store purchases with in-store pickup and returns. We created several targeting lists based upon website visits, in-store purchases, the frequency of return to the website and several others. Each remarketing list was served very specific ads related to how they were added to these lists. Our success was measured by how they engaged with the ads (Click Through Rate) if they made a purchase online (Conversion Rate), and how well we were able to get a better return on our advertising dollars (Cost Per Conversion). The data we’re sharing was for a period of 10 months.
For these groups, the strategy proved to be very effective. When comparing these remarketing targets with our standard ad targeting we say a 19.16% click-through rate in comparison to 6.32% for regular traffic. Our conversion rate for our remarketing audience was 3.37% vs 2.43% for our regular traffic. Our cost per conversion for our remarketing audience was $14.05 in comparison to $26.81 for our standard traffic.
On top of that, the value per conversion was higher among our remarketing traffic vs regular traffic at $159.45 per conversion vs $132.28. The return rate on conversion for remarketing traffic was 1,134% vs 493%. The remarketing traffic was 130% more profitable than the standard traffic!
Based on these results, and we see very similar types of metrics for other retail clients we run these strategies for, it is well worth the time and effort to make sure your remarketing optimization is done the right way.