How We Reduce Our Cost Per Sale With Retargeting

What is Retargeting?

Retargeting is the digital marketing technique of targeting users who have previously visited your website, with banner ads on display networks across the website. With retargeting, you only target users who have visited your website and have had an experience with your brand. You can target users that visited a specific part of your website, or your whole site, the choice is yours. Either way, you are ensuring that you spend money on people who have already visited your site.

In comparison to normal display advertising, retargeting is more of a beneficial technique, as with normal display advertising, they target users in the early stages of the buying process, where you have to establish yourself, build rapport, brand effectively all with the aim to sell. But if the user has already visited your website and has links to the website, you are one step ahead of the game.

How Does It Work?

You place a retargeting pixel on certain sections on your website or across the entire site and as visitors arrive on the pages you have a pixel on, they are added to an ‘audience’. This audience is cookied, and as users visit other websites in the display networks that you are running retargeting ads, they are shown your ads. This provides you with a platform to target your user in a creative way that can bring them back to your service and remind them of your brand. You can even offer them unique codes and discounts in your ads to bring them back to your website and drive business. You can also control the websites that show your ads, just like on typical display network buys.

If a person in your audience converts, then a ‘burn pixel’ will fire, which takes them out of the audience. You can also choose to add different pixels if you wish to show converting visitors different ads. However, it can get complex when you are choosing which sequence of pixels you cookie these users with.

Retargeting is incredibly effective, as this technique can give you credit to click-through and view-through conversions. Retargeting also encourages elements that assist with the buying process:

  • Raises awareness through ads that feature a logo and brand name
  • Creates interest as the ads feature products users have liked
  • Evaluation, as the ads answer questions users may have
  • Encourages a decision with ads that feature promotions and unique discounts
  • Purchase as ads features products similar to the ones they have already purchased

It is known that retargeting is the most effective way to target a user at any given time and even if it doesn’t work straight away, you will be granted more data which provides you with more control over how you utilise that information. To optimize retargeting effectively, time and management has to be put into it. Retargeting specialists believe that having a user see 7 to 12 of your ads in the period 30-days is ideal.

We don’t retarget everyone

We cut out a lot of wasted budget on re-targeting by excluding anyone who hasn’t engaged with our content.

We’ll only retarget people who have spend at least 10 seconds (which is actually quite a long time in terms of web use – count to 10 in your head and think about how many new websites you’ve spent that much time on). You can choose a longer or shorter time if you like, there might be a better option but 10 seconds works for us. If you try and limit your audience too much your ads won’t show at all and you’ll be missing out so don’t go too high. And remember you can set it up so that you only pay per click.

Anyone spending less that ten seconds on a website probably isn’t going to remember the brand or the product we are advertising so drip feeding features and benefits will be lost on them.

Being product specific with your retargeting

If the website we’re marketing has more than one product we will segment our Remarketing lists. Basically, we’ll create a list per product, we’ll do this in analytics when defining our audience. We’ll create rules for our audience ie must have spent at least 10 seconds on this product page. That way we’re being really specific with our retargeting messages.

How much does re-targeting cost?

It really does vary, but ads on the display network are generally much cheaper than search ads, plus you’re paying per click whilst benefiting from a warm audience continually seeing your product’s features and benefits whenever they search the web.

Our advice is to make sure you’re are tracking your leads and sales accurately in Google analytics and work to a profitable CPA (cost per acquisition – Ie how much does it cost me to make a sale) which you can see against your retargeting campaigns.

We often find spending more money reduces our CPA with an effective retargeting campaign.

Rather than spending all our budget on people that have never heard of the product before (then expecting them to buy on the 1st visit) spending some of it on re-targeting increases our chance of making the sale therefore, it costs us less to make the sale.

For example, let’s say we spend £100 per month and it costs £10 in ad budget to make 1 sale just targeting cold traffic; That’s 10 sales.

If we add £30 per month on retargeting it now only costs us £6 to make a sale we now make 21-22 sales for our £130.

We’ve more than doubled the amount of sales by spending an extra £30.

We can’t guarantee those kinds of results (We have no idea what your product is and what your website or messaging is like) but we have found retargeting to work for us. Plus we can’t take all the credit we work with clients who have amazing products we just make sure people know how amazing they are and maximise every opportunity.

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