5 trusted techniques to improve re-targeting ad experiences
“The key to re-targeting success is audience segmentation”
Wondering what re-targeting is?
Isn’t it great how much has social media involved, bringing in new techniques to reach out to your prospect leads every single day? You obviously would want visitors coming onto your website to leave only after they have been converted. But the reality is 95% don’t! So what is it that we are going to do about it? Do we just leave them or try to reach out to them again with some information about your website which is helpful?
It’s a most common scenario where users are bouncing out from your landing page and frankly speaking there is a little you can do about it. This is where RE-TARGETING comes into the scene. It is a process or mechanism of re-marketing or reaching out again - these bounced user - either via online marketing techniques or via offline modes, whichever is suitable. This technique is now being used worldwide for these 90% users who are not converted on their first visit to your website.
Now, the next question, is this even possible, uggghhh? How would I target them again? Is this some hack?
Simple answers to these questions are
- Yes it is possible!
- Cookies trick!
- No hack, please!
Taking into consideration the facts that you will be trying re-targeting for the first time, it is totally valid and would seem like something impossible. And if I look from your point of view, it is very true!! Why would a user want to come again onto your website and pay you, if they didn’t like your solution on the website in first place? But knock knock, we have a solution here. Today I will be listing in some of the most effective points that can actually be used to successfully lower the percentages of BOUNCE and CHURN at your website.
But before that, it will be better if you get to know, how re-targeting is done! COOKIES it is. Now, most of you already know what cookie is but still for sake of people who are unaware of it, Cookies are small text files that are stored on the users browser. They contain a unique identifier which is normally referred to as cookie ID. These cookie IDs are nothing but just normal character strings that websites associate with the users browsers. Now using these cookie IDs the websites differentiate between your browsers and the others.
Once you allow cookies on a particular website, then you are allowing website to store your information on your hard disk such as browsing topics, geographic data using location access or anything which later can be retrieved by the websites. Now, depending on the user information being collected in that text file, the websites can later track your activities and show you advertisements depending on your search profile. This is how agencies understand who their targeted customers and can obtain a conversion from them. Thanks to Retargeter for giving a better pictorial insight here.
I believe you now have a knack of what re-targeting is and when does the need of re-targeting arises. Lets discuss more on improving re-targeting ad experiences.
It is advised that you create simple buckets to segregate website visitors based on their behavior. It obviously doesn’t make sense if you are showing a technical advertisement to a user who is non-technical. It may be possible, this user bounced off in the first place because of too much technical jargon which he/she was unaware of. Now, if you show the same advertisement to them, how will that be helpful? And ultimately your re-targeting fails. Creating simple buckets depending on users’ activities on the internet, each clearly describing what these users are actually searching for, you can optimize your advertisement and then target users accordingly. The trick here is to create awareness and gather their interest which can later be presented in the form of advertisement to them.
Creating Separate Ads for audiences
Another most overlooked but important technique of re-targeting optimization is to create separate advertisements for your new and re-targeted user. It makes no sense if you show both user segments with the same advertisements. Now, another thing to note is that customer acquisition cost (CAC) for retargeting audiences is comparatively lower than targeting new customers. At my previous employer, it took 2$ as an average CAC for acquiring customers already aware of my product, however, it cost nearly 8.2$ for every new customer to get on-board. But if you run the same campaign, it will be very difficult to understand and track the conversion rates. You won’t be able to analyze the parameters for this campaign, like which segment of the customer was converted more: New audience or a re-targeted audience. Believe me, you don’t want to get into this roadblock.
Your Campaign Duration
Whenever a web server installs cookies, it remains active for a specific period of time, depending on if it is a session cookie or longer-term cookie. Re-Targeting is done mostly based on the data that are available in the cookies and as stated earlier, these cookies don’t remain active life long. You have a minimum amount of time for getting these re-targeting audience converted. You need to experiment with the duration of your campaigns as to how much can we make the most out of it while the cookies are still active, keeping in mind that your campaigns stays inline with your company sales cycle.
Setting base price for re-targeting customer acquisition
One always thinks that campaigns are good enough until and unless the conversions are on the table. But have you every closely monitored how much cost is being incurred for single acquisition of customer? As mentioned earlier, it took $1 for my previous company to retarget the audience in a specific geographic location, but what if it took 11$ only for them to signup on to your website? Doesn’t that mean something is going horribly wrong in this campaign that needs immediate attention? Well, the trick here is simple. Once you have started your campaign, depending on the past campaign analytics you need to set up a base price on re-targeting customer acquisition cost. If any of your new campaigns exceed this CAC, it is evident that changes need to be introduced.
Performing regressive A/B Testing
You all must be aware of A/B testing method. As per Wikipedia, A/B testing (bucket tests or split-run testing) is a randomized experiment with two variants, A and B. It includes the application of statistical hypothesis testing or “two-sample hypothesis testing” as used in the field of statistics. A/B testing is a way to compare two versions of a single variable, typically by testing a subject’s response to variant A against variant B, and determining which of the two variants is more effective. Now replace the word application with campaigns. It all comes down to testing which of your two campaign A or B are working well.
It’s not necessary that an advertisement working well for one type of customer segment would work wonders for others too. And it is also not necessary that advertisements working great today would possess the same weight tomorrow. You need to closely track each campaign (having different variants) of yours to understand which campaign is bringing wonder level conversions. Once you have the campaign analytics, you also have onboard the best advertisement that has the potential to drive your customer at the end-stage of your sales funnel.
I have personally experienced each of these techniques and can assure you of the wonders it can bring in for your re-targeted audience. It really is a wonderful way to also increase customer interaction and bring in more prospect leads. However, it is to be duly noted that re-targeting can only help in increasing conversion from the customer who is already aware of your product but it cannot bring in new customers.