Newsletter - Re-Look at Retargeting
Performance Marketing Newsletter
July 2010
Re-look at Retargeting
Dear Reader,
Welcome to Performance Marketing, the monthly newsletter for online marketers looking for results. Retargeting (or remarketing as Google calls it) is one of the important trends for search and display marketers of 2010. Retargeting was introduced about five years ago to much acclaim and is enjoying resurgence as advertisers realize the benefits. Many of our clients are having success with retargeting, yet there are misperceptions that prevent some from adopting this high performing tactic. This month's feature article addresses these common concerns.
All the Best,
Daniel Laury
Founder, President and CEO
LSF Interactive
Feature Article: Four Common Misperceptions of Retargeting
Remarketing allows advertisers to get in front of online consumers who have already shown an interest in a product or service by following them and showing messages for the product or service as they browse other sites.
Despite its phenomenal success for advertisers as a conversion tool, retargeting has gotten a bum rap because of confusion about value, attribution, impact and integration. Advertisers who don't use retargeting are missing an opportunity to turn viewers into buyers. Here are four common misperceptions of retargeting.
What is retargeting's value?
Retargeting builds awareness and influence. It allows you to get your brand in front of those people who have already shown an interest in your product. Retargeting operates - like most advertising - on the premise that an ad served to someone who has shown interest will reinforce that interest and boost return visits and ultimately sales.
The consumer who sees your banner more often may not click on it directly but will have your product in mind, consciously or not, when they begin to search. A recent study from comScore showed that Americans are 49 percent more likely to visit an advertiser's site if they have previously been exposed to display ads.
The Network Advertising Initiative reported that targeted ads are more than twice as effective at converting users than run-of-network ads. According to SEMPO, 51% of those who have tried remarketing in online advertising said it had an impact.
How are conversions attributed?
With retargeting, the advertiser sees both click-through and view-based conversions.
However, Google Analytics (and other systems) do not track view-based conversions, leading to some confusion about attribution.
For example, a consumer goes to Bestbuy.com and browses but does not buy. Google counts this visit. The retargeting software knows the consumer went to BestBuy but didn't buy and will serve a banner as he or she travels to other sites in the retargeting network. There are two different measurement systems in play.
View-based conversions are tracked on whether the consumer has been served an ad. You won't know if the viewer has seen the ad and decided, "I still need that" or if they just decided to go back to BestBuy on their own. Both view and click-based conversions are valid metrics.
The consensus of most in the advertising industry is that 10 percent of revenue can be attributed to view-based conversions. While there is a range of outcomes, we have found that clients who connect their marketing message with previous viewers can reach or even exceed this level.
The ability to segment users based on their interests is key. A targeted message is often what captures the attention of a user and compels them to come back and convert. For example, serving an ad for a particular product viewed vs. a general banner for the brand will impact the results greatly. Marketing directors understand that view-based conversions are an important metric and one factor, along with click-based conversions, in determining ROI.
How do I measure impact?
Click-through conversions are precise and easy to measure. But it is important to remember the value of multiple exposures to a brand's message. Even if they don't lead to a click, these ads keep your product in mind when a consumer begins to search.
Testing is one way to estimate the impact of retargeting on sales and leads. Many companies run a "dummy" banner along with an actual banner to the retargeted visitor to see how sales have been influenced. Exposing a small percent of the campaigns to a PSA for example and measuring the conversions in this group will give advertisers a baseline. Running a test from 2-4 weeks will give an accurate portrayal of a banner's impact. Sites with higher traffic may be able to use an even shorter timeframe to gauge results.
How do I integrate retargeting?
Retargeting helps close the loop between search and display and is a helpful step in the path to convert someone. For example, when a consumer goes to a site but doesn't complete a purchase or become a lead, he or she may not have seen the advertiser's banner, but a cookie is set on their browser. When they return to the site later, they'll get served the same ad or another relevant ad, discount or coupon.
In the meantime, the consumer is hearing your radio spots, seeing print ads or billboards, becoming a fan on Facebook, and gaining awareness through all the other media you are advertising in that influence each other. Retargeting is a strong component of an integrated marketing campaign.
Big Picture
Final note, remember that remarketing doesn't pull any personally identifiable information from the visitor. All that is tracked is the fact that he or she viewed a particular site. Advertisers can be confident that they are serving smarter ads to educated consumers, generating brand awareness and boosting conversion rates at the same time.
