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10 facts about remarketing β€” why is it worth pursuing such a PPC campaign?

Jakub Majka
12 min read

Remarketing arouses utmost emotions. On the one hand, it is compared to a magic wand, thanks to which you can obtain spectacular sales results, on the other hand, it is accused of being pushy and wasting resources. How is it for real? Remarketing is certainly a major issue in e-commerce, which includes many measures to re-engage potential customers. You can conduct such a PPC campaign amongst people who have visited the website, filled out a form or watched a video about the product. But what does remarketing gives and is it worth investing in it? Here are 10 facts that will dispel all doubts.

1. The remarketing conversion rate increases over time

Remarketing opponents claim that displaying advertisements to people who have made an action and then given up on shopping is not a goal. Their main argument is that the advertising becomes less and less interesting with every day, and thus will not generate the estimated number of clicks. In reality, however, remarketing works quite differently. It has been established that conversion rates increase, proportionally to the amount of users who would see the ad in remarketing campaigns. Although click-through rates indeed decrease over time, people who have already seen an advertisement several times before are twice as likely to complete the purchase.

Remarketing provides users with a gentle reminder to finish what they started on the website. Simultaneously, such PPC campaigns strengthen the brand and create its awareness among potential customers. Therefore, despite minor previous interactions, when after some time a person intends to spend their money, they would do so with the company known to them.

The large brand named Tirendo can serve as an example. It is an online tire store and its marketing specialists have shared some surprising data. They said that after remarketing campaigns conducted with Google, the company has noted a conversion rate increase of as much as 161%! Meanwhile, reducing its advertising costs by 43%, which translated into further profits.

2. Good remarketing doesn't cause advertising fatigue

It is often said that the Internet is overloaded with advertisements and the recipients are fed up with intrusive content. Of course, there is some truth in this statement, but one must bear in mind that both the form and types of promotion have changed considerably over the last few years. Nowadays, basic advertisements have become a relic, and what matters is a personalized approach to the customer.

All advertisement, whether in a search engine, display or remarketing, would not work properly if:

β€’ it is poorly designed, β€’ does not convey any valuable content, β€’ has the inappropriate layout, β€’ is misleading, β€’ reaches the incorrect recipients.

The key here is to understand that it is not remarketing itself that is detrimental to the company, but rather it's quality. Fatigue with advertisements means that the more frequently one sees an advertisement, the less likely the person clicks on it since people get discouraged by seeing the same content constantly. Annoyance or anger at a particular advertisement only strengthens the weariness. However, specialists comparing thousands of display and remarketing ads, concluded that the click rate is higher for the second category. Why does this happen when these should be more tiring?

Only 3% of people visiting the website for the first time are likely to buy products that can be found there. This means the loss of 97% of potential customers who may have been interested in the offer, but for some reason, haven't completed the purchase. It has been proven that redirecting ads increase the number of conversions and that their effectiveness enhances with more ad views. So if someone from the 97% of visitors disrupted their shopping, only remarketing PPC campaigns can remind him of the company and the products available.

3. Google offers the broadest reach

Advertisement work only when it can reach the right recipients. Currently, Google and Facebook provide the largest and most diverse audience.

The Google Advertising Network (GDN) has a reach of over two million sites and applications! The use of GDN for remarketing provides access to the people who buy most often, regardless of the device they are browsing the Internet on. GDN reaches 90% of network users worldwide, 65% of whom are online daily. It gives the potential to display advertising to over 1 billion users per month. Facebook achieves similar results.

4. Remarketing is extremely effective in brand building

Currently, there are millions of companies in the world, and thanks to globalization even those located on the opposite sides of the globe can compete with each other. Building a brand is, therefore, essential for success and continuous development of the enterprise.

It is quite difficult to build a brand with small text advertisements and free search results that have a strongly limited character space and do not support the logo and other visual elements that affect how the company will be perceived. Remarketing in the advertising network is a fantastic way to eliminate this problem because it allows introducing many creative techniques so that customers would remember the brand.

Additionally, it should be mentioned that many people enter the company's website, do not perform any actions on it and then leave and never come back. Remarketing provides the opportunity to reappear to such recipients. Thanks to that, there is a chance that they will spend more time familiarizing themselves with the company or the offered products and services. Solid, stable brand that will have an advantage over the competition can solely be built by constantly encouraging interaction.

5. Remarketing is inexpensive

Search engine ads in highly competitive industries can cost a lot per click - even if it doesn't involve acquiring a new customer or selling products. On the other hand, remarketing in the advertising and social network can be even several hundred percent cheaper, and at the same time is characterized by better conversion. Why does this happens?

Google and Facebook promote content that is willingly viewed by users. As marketing attracts the most people in the final phase, such advertising is considered useful and effective. In Google's advertising network, every 0.1% increase in CTR results in a 20% decrease in CPC! On Facebook, this correlation is even more evident. An increase in engagement by 1% (people who like, comment on or click on promoted posts) results in an average 5% cost reduction. As a result, a well-viewed promotion can be treated as the content that the platform wishes to have because it attracts users.

However, it should be remembered that this also works the other way round - an advertisement that does not have many clicks will cost much more. Therefore, it is good to have in mind the fact that only a good promotion can generate profits, gather an audience and build brand awareness.

6. Remarketing catches up with search engine advertising

Search engine ads have the highest conversion rates due to the effectiveness of keyword searches. Several years ago display ads could not compete with them. Today, however, thanks to remarketing and other developments resulting from the popularity of social media, they convert almost as well as search engine ads, and in some industries even better.

The browsing history has a major impact here, allowing us to adjust the content of the ad to the right audience. This advantage allows to stay ahead of your users and show them those items that may be of interest to them. And not only during the search but on every page and service available in the advertising network.

7. Remarketing is not limited to display and social advertising.

Remarketing in advertising and social networking is most often mentioned, but these are not the only options available to companies. The RLSA (Remarketing lists for search engine ads) links the purpose of the query to the user context, such as location, device and time. Subsequently, it overlays this data on the browsing history, which is an extremely effective and powerful combination.

Marketing professionals claim that RLSA campaigns have twice the CTR, half the CPC and convert twice as fast as regular search engine campaigns.

8. Remarketing is acceptable to customers

Considering how RLSA or other PPC campaigns work, it seems that they excessively interfere with users' privacy - after all, they use data about their location or time of Internet browsing. However, the research shows that only 11% of people feel uncomfortable watching personalized ads, and for others, they are indifferent or even welcome.

According to tests conducted by Pew Research Center, many Americans believe that it is worth sacrificing privacy to get a better offer on a product that interests them. The survey on privacy and information sharing showed that 47% of respondents preferred remarketing because it was more convenient for them to track online retailers to find the best price.

9. Remarketing works on many levels

In the past, CROs (conversion optimization) were calculated based on hits only and actions performed on the website. Today, there are many different platforms that consumers use to make purchases. This group includes: β€’ numerous platforms, β€’ applications, β€’ programs, β€’ social media, β€’ company websites, β€’ intermediary parties.

A customer may never go to a company website to buy something from it. While clients are scattered all over the internet, remarketing gives them a chance to reach them regardless of what they are currently browsing.

10. Targeted remarketing on social media provides the greatest benefits

Remarketing ultimately allows reaching only those users who in some way were or are interested in the company's offer. Nevertheless, one has to be aware that among people who have visited the site, only some of them can become customers. It depends on e.g. age, property status, interests or taste. So why conduct regular remarketing for everyone, when you can instead focus only on the target market?

Targeted remarketing allows you to filter the cookie pool based on thousands of options. You can choose between demographic data shown in social media (age, life events, jobs, etc.), as well as shopping and interest history. By choosing the right target group for PPC campaigns, you can gain a lot of customers who would stick with the company for some time.

Summary

A well-designed PPC campaign is nowadays the most effective tool to win a group of loyal customers. Remarketing allows reaching people who will be interested in the company's offer. Moreover, it is a cheap and effective option that both large corporations and small local companies can afford.

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