i [love/hate] retargeting! how to know if retargeting work for you by soren ryherd
DESCRIPTION
From the SMX East 2014 Conference in New York City, NY. SESSION: Remarketing: Overhyped & Overvalued, Or Undervalued And Underused?. PRESENTATION: I [Love / Hate] Retargeting! How To Know If Retargeting Works For You - Given by Soren Ryherd, @SorenRyherd, President - Working Planet. #SMX #34CTRANSCRIPT
I [Love|Hate] Retargeting! How to Know if Retargeting Works for You
Soren Ryherd, President, Working Planet #smx #34C
#smx #34C 2 Oct 2014
About Working Planet
#smx #34C 2 Oct 2014
Image property of FollowYu, Inc.
Greatest Thing Ever!
Money-Sucking Pit of Despair! “I love retargeting. It sounds cliche, but I
really do. I’ve seen it work time and time again and I geek out on performance marketing.” – Lauren Vaccarello, co-Author “The Retargeting Playbook”
“I hate retargeting with a passion. I run subscription services and what I find is that my own regular customers are just using ads from random websites to get back to my site to use their account. After just a few clicks I've already spent their entire monthly subscription.”
– In-House Internet Marketer
Retargeting: Good or Evil?
#smx #34C 2 Oct 2014
Why the Debate?
Answer: Retargeting works (or does not work) based on core financial metrics, which differ radically from company to company
Retargeting? WTH?
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How Advertising Works
Cost of Media
Engagement Value Created
Feel free to apply this everywhere…
Basic Equation for Success
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Channel Leads CPL
Google 450 $125 Bing 50 $85 Organic 113 $22 Retargeting 215 $130 Facebook 35 $725 Billboards who knows…
Classic Channel Centrism
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Retargeting is NOT a channel! It is an add-on cost that is potentially justified by an increase in conversion Assessing retargeting as a channel is wrong, but very common given channel-centric tools
Really, just stop.
Not a Channel!
#smx #34C 2 Oct 2014
How Advertising Works with Retargeting
Cost of Media
Engagement Value Created
Add-On Cost of Retargeting
Add-On Conversion from Retargeting
?
Doing the Math
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Retargeting is an attribution issue, but a really easy one to address and understand.
Non-Brand Search
Brand Search
Brand Search
Direct Conversion!
The “A” Word and User Behavior
Non-Brand Search
Brand Search
Non-Brand Search
#smx #34C 2 Oct 2014
Retargeting ads increase awareness that can accelerate and increase conversion.
Non-Brand Search
Brand Search
Direct Conversion!
The “A” Word and User Behavior
Non-Brand Search
Brand Search
Non-Brand Search
R R
R
Conversion!
R
R
#smx #34C 2 Oct 2014
Example Metrics (Bear With Me)
But wait.…
Retarg. True True
Channel Cost Leads CPL Conv Cost Leads CPL LIFT CR Leads CPL CPL ImprGoogle $56,250 450 $125 2.15% $17,290 133 $163 45% 1.48% 310 $181 $17.83
Bing $4,250 50 $85 2.45% $2,990 23 $145 56% 1.57% 32 $133 ($12.03)Organic $2,486 113 $22 4.88% $4,160 32 $59 35% 3.61% 84 $30 ($29.11)
Facebook $25,375 35 $725 0.35% $910 7 $751 110% 0.17% 17 $1,523 $771.50Pandora $5,625 45 $125 1.12% $2,600 20 $183 48% 0.76% 30 $185 $2.22Direct $0 135 $0 5.45% $5,590 43 $41 54% 3.54% 88 $0 ($41.41)Total: $93,986 828 $114 2.06% $33,540 258 $154 40% 1.44% 561 $168 $28
If No Retargeting
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Example Metrics (Part Deux)
The good stuff…
True TRUE
Channel Cost Leads CPL Conv No Retarg. w/ Retarg. No Retarg. w/ Retarg.Google $73,540 450 $163 2.15% ($9,698) ($6,040) $409,267 $601,460
Bing $7,240 50 $145 2.45% $552 $260 $43,765 $67,760Organic $6,646 113 $59 4.88% $10,070 $10,304 $123,070 $162,854
Facebook $26,285 35 $751 0.35% ($22,875) ($21,035) ($375) $26,215Pandora $8,225 45 $183 1.12% ($1,064) ($1,475) $39,983 $59,275Direct $5,590 135 $41 5.45% $13,149 $14,660 $131,494 $196,910Total: $127,526 828 $154 2.06% ($9,867) ($3,326) $747,204 $1,114,474
$1500 Value Per Lead$150 Value Per Lead
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Why is Retargeting an “Easy” Attribution Issue? Because we can easily test to understand the performance if retargeting didn’t exist in order to value it correctly.
Yay
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Lift is the gain in conversion from retargeting over the naturally occurring conversion of that audience.
How to Understand LIFT
Retargeting Segment
Retargeted Ad
PSA
3.31% Conv
2.47% Conv
34% Lift
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Case Study of Client with Great Results
• 138% Lift • $1,943 Value Per Sale
Case Study: All Good
Results: +$184k in post-marketing revenue 412% ROI on retargeting investment
Take Home: High Lift + High Customer Value = Big Win
Retarg. True
Channel Cost Sales CPL Conv Cost Sales CPL No Retarg. w/ Retarg.Google $79,476 243 $327 1.82% $44,744 113 $511 $118,906 $347,929
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Case Study of Client with Poor Initial Results
• 14% Lift • $273 Value Per Lead
Case Study: Optimizable
Results: Moved Retargeting from Hindrance to Help Take Home: Audience Segmentation Can Turn Numbers Around * Normalized for extrapolated equal spend
• 14% Lift • $313 Value Per Lead
Retarg. True Channel Cost Leads CPL Conv Cost Leads CPL No Retarg. w/ Retarg.Google $45,476 590 $77 4.12% $22,113 410 $115 $95,813 $93,481
Retarg. True Channel Cost Leads CPL Conv Cost Leads CPL No Retarg. w/ Retarg.Google $45,476 511 $89 3.83% $12,113 257 $113 $94,825 $102,354
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Case Study of Client: “It’ll Never Work”
• 11% Lift • $14 Value Per Sale
Case Study: Bleah
Results: $13k loss by adding retargeting Take Home: Reduced Opportunity to Segment + Lower Value = Hard Problem
Retarg. True Cost Leads CPL Conv Cost Leads CPL No Retarg. w/ Retarg.
$115,491 13,392 $9 6.76% $31,878 9871 $11 $53,417 $40,119
#smx #34C 2 Oct 2014
• Retargeting CANNOT be treated as a channel
• Retargeting is, by definition, an attribution issue
• Do the right math to calculate profitability
• Low financial targets make it harder to do everything, and that includes retargeting
• Test! Results vary widely by company and retargeting strategy
Summary
#smx #34C 2 Oct 2014
Thank you Soren Ryherd [email protected] @sorenryherd
WorkingPlanet.com 401-383-3600 @workingplanet
Thank You