Remarketing is essentially advertising to people based on what they have already indicated an interest in. There are various ways to track behaviour online, but as an example, if you search for ‘flights to sydney’, various bits of code on your browser and the website will register that you have entered that search. The next time you visit a site which is part of the advertising network, the displayed advertisements will likely show you ads for ‘flights to sydney’.
It is interesting to note that while display (image) advertising does not usually exhibit outstanding results on its own, when it is employed as a method of remarketing delivery, studies have shown marked improvement in clicks on these ads.
Why It Works Better For Some Products and Not Others
Case studies have shown that remarketing, particularly display remarketing works best for smaller purchases and impulse buys, than purchases involving larger amounts of money.
Larger purchases such as real estate and vehicles require extensive research and price-comparison. Even if a prospect has been considering such a purchase for a while, they are far less likely to convert through an online advertisement.
Smaller purchases, such as ebooks, shoes, consumer electronics, if marketed to a demographic with disposable income, are generally received well. Such a purchase decision does not require too much consideration for financial consequence and can be made relatively easily.
However, since the emergence of the ebook and other digital products, this observation may not always apply. It is not uncommon to see a successful campaign convert large percentages of their audience on thousand dollar digital products.
When evaluating whether your business or client is suited to online marketing, consider the nature of their offer, and whether running a campaign could prove viable.
Benefits of Remarketing
- It improves relevancy of ads because the ads served is ensured to appeal to your visitor’s interest.
- It improves conversion rates.
- It helps in brand or product recall.
- It gives you another chance at engaging leads lessening the total loss of leads.
- It allows you cross-sell products to customers you have already transacted with.
- Remarketing helps lower advertising costs.
How Data and Google Analytics Target People
When behaviour tracking and information mining first arrived on the internet, it was shelved because people thought it was too invasive. Now that such practices are commonplace, it is important to take full advantage of the tools and possibilities available.
Google Analytics and Google Adwords allows the targeting of display and video advertising through interest and demographic segments in the display network. Through website browsing behaviour and other available demographic information, individuals are classified in one or more interest categories, and webmasters can see the overall breakdown of an audience visiting their website in Google Analytics.
The real advantage of this is the ability to create segments in Google Analytics based on user behaviour and begin to understand how different types of people are using your website. Looking at groups as comprised of actual people as opposed to just a large collective allows you to tailor website content and understand which parts of your website are more relevant to some groups over others. This can inform your SEO strategy and to make your website more relevant to your audience.
How it Ties with Advertising
Google Adwords allows you to retarget advertising to specific segments you have defined in Google Analytics. You are also able to target pre-defined segments on the display network and YouTube.
What this practically means is that you can combine existing market research and customer data of who is most interested in your products and services, to reach them specifically. You can choose to pay more to advertise to people who are likely to make purchases, or may have a higher disposable income level. It makes display advertising much more effective, rather than following a scatter gun approach to a large audience.
It is possible to advertise to people based on:
- How long they spent on a specific page
- Their gender
- Their interests
- Which device they have
- and many other characteristics