Retargeting Benchmark Report - Q1 2013
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Retargeting Benchmark Report - Q1 2013

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Download the full report: http://www.gleanster.com/reports/retargeting ...

Download the full report: http://www.gleanster.com/reports/retargeting

Retargeting has emerged as an effective way to improve results for online marketing. This guide will provide a comprehensive, down-and-dirty review of how Top Performers are using Retargeting, key terms and concepts, how to measure success, and a full vendor landscape with analyst commentary.

Find out if retargeting is appropriate for your marketing mix.

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Retargeting Benchmark Report - Q1 2013 Retargeting Benchmark Report - Q1 2013 Document Transcript

  • Q1 2013 Gleansight Retargeting Retargeting has emerged as an effective way to improve results from WebContent marketing. Originally limited to serving Web banner ads to people whoPart 1: Topic Overview had previously visited a company’s Web site, it has now been expandedPart 2: Reasons to Implement to include messages based on search terms, content viewed elsewherePart 3: Value Drivers on the web, and other online/offline behaviors. What these activities allPart 4: ChallengesPart 5: Performance Metrics share is insight into a person’s intent, which forms the basis for targetedPart 6: Success Story advertising. Intent-based personalization and targeting is more effectivePart 7: Vendor Landscape than targeting based on demographics or the location an ad displays, older and still more common approaches. The trade-off is that intentSidebars is harder to identify, so audiences for retargeting messages are much smaller than those available using less refined methods. As a result,Survey StatsBenchmark KPIs marketers must use a mix of methods to generate enough response.Core TechnologiesGleanster NumbersVendor Quick Reference Guide Growth of retargeting faces other information. Government requirements obstacles as well. One is the for “do not track” options could reduce “creepiness” factor: some marketers retargeting’s effectiveness but their final fear that customers will be annoyed by form, if any, remains to be seen. A more messages based on information they did concrete obstacle is revenue attribution not intentionally provide. This concern methods that understate the impact is probably overrated and can largely of retargeted messages: by definition,Note: This document is intended for individualuse. Electronic distribution via email or by be overcome by sending ads that do not retargeted ads are served after the firstposting on a personal website is in violation ofthe terms of use. explicitly reference customer-specific interaction with a potential buyer, andEntire content © 2013 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  • Gleansight: Retargeting 2 many act as intermediate reminders and lower cost-per-click than traditional that precede an actual purchase. Thus, Web advertising. Initial success in both first- and last-touch attribution fail e-commerce, retail, education, and to capture retargeting’s full contribution. travel marketing has been duplicated A final barrier is many marketers’ in other industries selling to both unfamiliarity with retargeting techniques, consumers and businesses. Those which prevents them from even testing results ensure that marketers will them. continue to explore and adopt it at an increasing rate. This study will help you Despite these issues, retargeting has to understand the opportunity and use been proven to offer higher response retargeting to its full advantage.Note: This document is intended for individualuse. Electronic distribution via email or byposting on a personal website is in violation ofthe terms of use.Entire content © 2013 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  • Gleansight: Retargeting 3Survey StatsThe research findings featured in Part 1: Topic Overviewthis Gleansight benchmark reportare derived from the Q4 2012 This study defines retargeting as Web ads delivered outside a company’sGleanster survey on Retargeting. own site and based on a customer or prospect’s previous behavior. This • Total survey responses: 234 excludes practices such as emails reminding customers of abandoned shopping carts and product recommendations made within a Web site based • Qualified survey responses: 146 on previous purchases, which are also sometimes labeled as retargeting. • Company size: <$1M (3%); $1 The narrower focus allows a deeper examination of the chosen topic. - 10M (17%); $10-100M (41%); $100M - $1B (25%); >$1B (14%) Retargeting systems perform three site, such as pages viewed and basic functions: behavior capture, products purchased. Anonymous • Geography: North America targeting, and ad serving. Behavior visitors are tracked via cookies until (95%); Europe (4%); Other (1%) capture includes tagging individuals they identify themselves by logging by dropping cookies on their computer in or making an actual purchase. • Industries: Retail (18%); CPG and associating these cookies with Site-based retargeting can capture (11%); Manufacturing (8%); specific events or interests. Targeting very detailed information about Financial Services (5%); determines which messages will be each visitor, which in turn allows Travel & Hospitality (5%); Entertainment (4%); Other (49%) sent to which individuals. In addition for precisely targeted messages. to interests, targeting may take into In some cases, the site-based ad • Job levels: C-level (17%); SVP/ account the price an advertiser is willing is dynamically adjusted based on VP (23%); Director (37%); to pay for the message and how much specific products the visitor has Manager & Staff (23%) other advertisers would pay for the previously considered “ same opportunity. or purchased. This Ad serving includes Retargeting systems is sometimes called identifying taggedSample survey respondents: individuals when perform three basic product retargeting. Other types ofEVP, StorkGifts they appear on a functions: behavior company-based Web site, selecting capture, targeting, retargeting may useManager, Microsoft a message, and cookies dropped by and ad serving.” delivering the an email message,Owner, Leather Gloves Online message to the social media content,Director, Expedia Web site for display. or promotion landing Retargeting vendors may build their pages. These are fundamentallyVP of Marketing, Blue Jeans Network own network of Web sites to display similar to site-based retargetingCMO, TireBuyer.com messages, buy inventory from external in starting with a direct interaction ad networks, or do both. Vendors between the visitor and the company.EVP, Body Bath Shop also differ in how much of the program set-up, administration, and optimization 2. earch-based retargeting works SManager, Bloomingdales uses data from search engine queries marketers do for themselves. OptionsCMO, Paciolan range from full self-service, as in as the basis for targeting. Because Google Ad Network “Remarketing” search-based retargeting does notDirector, Symantec require direct interaction with a (Google’s term for retargeting), to fully outsourced. company’s content, it can reach a much larger audience than site-based Retargeting methods fall into two broad retargeting. Search-based retargeting categories. can also connect with prospectsNote: This document is intended for individual earlier in the buying cycle, includinguse. Electronic distribution via email or by 1. ite-based retargeting uses data Sposting on a personal website is in violation of people who are not yet aware of the gathered on a company’s own Webthe terms of use. advertiser.Entire content © 2013 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  • Gleansight: Retargeting 4 Both site- and search-based retargeting the CPC model. Some retargeting can be purchased either on the number plans also offer a cost per actionBenchmark KPIs of impressions (cost per thousand, model, where advertisers pay only forGleanster uses 2-3 key performance or CPM) or the number of responsesindicators (KPIs) to distinguish “Top specified conversion events such as (cost per click, or CPC). The CPMPerformers” from all other companies providing contact information or making(“Everyone Else”) within a given data model is best suited to brand marketers, a purchase. Even when marketers payset, thereby establishing a basis who are more interested in repeatedfor benchmarking best practices. exposure than generating immediate on CPM or CPC, they often evaluateBy definition, Top Performers are their retargeting programs in terms of action. Direct marketers, who carefullycomprised of the top quartile ofqualified survey respondents (QSRs). monitor their cost per sale, often prefer cost per action.The KPIs used for distinguishingTop Performers focus onperformance metrics that speakto year-over-year improvement inrelevant, measurable areas. Notall KPIs are weighted equally.The KPIs used for this Gleansight are: • Year-over-year increase in revenue • Average Click-Through Rate • *Use of RetargetingTo learn more about Gleanster’sresearch methodology,please click here or emailresearch@gleanster.com.Note: This document is intended for individualuse. Electronic distribution via email or byposting on a personal website is in violation ofthe terms of use.Entire content © 2013 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  • Gleansight: Retargeting 5 Part 2: Reasons to Implement Retargeting was originally used to recontact potential customers who had visited a Web site but not made a purchase. This provided a direct boost to sales at a lower acquisition cost than other, less focused advertising. The emergence of search retargeting has extended the reach to include prospects in earlier stages of the purchase cycle, since ads can be based on general search terms and be sent to people who have yet visited the advertiser’s own site. Since the ads can be served on any Web site within the retargeting vendor’s network, the inventory of available impressions is higher and the cost per contact is potentially reduced. The net result, again, is more cost effective advertising as marketers reach a targeted audience for less. Because retargeting systems can can help to acquire new customers. store very detailed information about Site-based retargeting uses cookies each visitor, they may also permit to tag anonymous visitors and then messaging that is precisely tailored to recontact them as they visit other each individual. This improves both sites. Search-based retargeting can advertising effectiveness and the reach prospects whose behavior over-all brand experience. seems appropriate even though they have never visited the company’s own Increase Revenue. Retargeting Web site. Both applications allow the expands the audience for your ads company to reach and capture more and helps convert a higher percentage new customers than they would with of visitors to customers. Both factors traditional Web advertising. create more revenue. In addition, because retargeting will probably Increased marketing ROI. Retargeting replace other, less effective ad targeting improves marketing ROI by identifying methods, it should result in higher return highly responsive audiences, sending on ad budgets, either allowing a smaller those audiences precisely targeted spend to create the same revenue or the messages, and allowing use of lower same spend to yield a revenue increase. cost ad impressions. The result is both higher response and lower investment. Increased new customer acquisition. Converting these benefits into an Both site- and search-based retargeting actual ROI calculation requires a way 86%29% 90%43% 95% ** ** Most Compelling Reasons to Implement* Increase marketing ROI Increase new customer Increase revenueNote: This document is intended for individual acquisitionuse. Electronic distribution via email or byposting on a personal website is in violation ofthe terms of use. * *According to Top Performers, based on 135 Qualified Survey Responses to the Q3 2011 Gleanster survey According to Top Performers, based on 146 Qualified Survey Responses to the Q4 2012 survey on Retargeting. **According to Everyone Else shown only when aa notabledisparity occurs relative to Top Performers ** According to Everyone Else, shown only when notable disparity occurs relative to Top PerformersEntire content © 2013 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  • Gleansight: Retargeting 6 to relate responses to actual business not make. Messages can highlight value. This can be difficult if analytical a specific product, make a generic techniques fail to credit retargeting reactivation offer, or simply remind the messages with a contribution towards consumer of the brand. Reactivation subsequent purchases through different messages may be based on behavior channels. information gathered from transactions, emails, social networks, or other Raise brand awareness. The ability sources, in addition to messages based of remarketing campaigns to reach on Web site activity. customers outside of the marketer’s own Web site allows broader distribution of Lower marketing costs. The primary brand awareness messages. Search- cost savings from remarketing come based retargeting in particular can from more effective advertising, which expand awareness by concentrating allows marketers to get the same messages on individuals who have not results for less money. Marketers previously engaged with the company. may also save money through lower Techniques such as sequential content creation costs, if they can create messages streams and individual-level fewer or simpler ads, and through frequency caps can further increase the time savings from replacing more effectiveness of brand promotions. elaborate acquisition campaigns with simple-to-run remarketing campaigns. Increase cross-selling and up-selling Actual changes in labor will depend revenue. Retargeting can be used to on the degree of automation within the contact existing, identified customers as remarketing system, which services they well as anonymous prospects. Once a perform for themselves or outsource, customer has identified herself by filling and the effort they put into analytics. out a form or making a purchase, their identity can be linked to the previously- Micro-target audiences with anonymous cookie. Selection rules personalized messaging. The can then look up information about past retargeting system can capture detailed purchases and use this to offer related profiles of on-site behavior, and then products or upgrades. The system use these to target off-site messages. can constantly check for updated This allows much more precise targeting information, so it does not send offers than the generic demographic or that are no longer relevant. contextual data that would otherwise be used to guide Web advertising. The Reactivate recent customers. degree of personalization within the ads TRetargeting can send messages to themselves must sometimes be limited recent customers based both on actual to avoid making customers feel that their purchases and on purchases they did privacy has been invaded. 19% 57% 24% 33% ** Compelling Reasons to Implement* Reactivate recent Increase cross-selling and Raise brandNote: This document is intended for individual customers up-selling revenue awarenessuse. Electronic distribution via email or byposting on a personal website is in violation of * According to Top Performers, based on 135 Qualified Survey Responses toto the Q4 2012 survey on Retargeting. * According to Top Performers, based on 146 Qualified Survey Responses the Q3 2011 Gleanster surveythe terms of use. **According to Everyone Else shown only when a notable disparity occurs relative to Top Performers ** According to Everyone Else, shown only when a notable disparity occurs relative to Top PerformersEntire content © 2013 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  • Gleansight: Retargeting 7 10% 14% 14% Less Compelling Reasons to Implement* Extend a more personal Micro-target audiences with Lower marketing costs brand experience personalized brand experience * * Accordingto Top Performers, based on 146 Qualified Survey Responses to the Q4 2012 Gleanster survey According to Top Performers, based on 135 Qualified Survey Responses to the Q3 2011 survey on Retargeting. **According toto Everyone Else, shown only when notable disparity occurs relative to Top Performers ** According Everyone Else shown only when a a notable disparity occurs relative to Top Performers Extend a more personalized brand Speed of implementation. experience. Because retargeting Deployment of retargeting is relatively is based on individual behaviors, it straightforward. Marketers must add a inherently allows a more personalized snippet of tracking code to the company experience than traditional advertising. Web site, either in shared footer or on In addition, some retargeting systems individual pages. There might be some can deliver a sequence of messages additional integration to capture and to each individual, allowing very tight classify specific details, but this should control over which messages they not be a major project. They must also receive. The systems do this by provide ads or dynamic ad templates keep track of which messages have and develop rules to match these ads to already been delivered to each person. visitor segments. Even some of these Messages can also vary based on steps may be automated in certain visitors’ response to past messages, systems. Set-up should be a matter other behaviors, and the current Web of hours or days, although preliminary site or Web page contents. research and decision-making may extend this considerably.Note: This document is intended for individualuse. Electronic distribution via email or byposting on a personal website is in violation ofthe terms of use.Entire content © 2013 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  • Gleansight: Retargeting 8 Part 3: Value Drivers Success of a retargeting campaign depends on a few simple conditions: marketers must be able to tag members of the target audience and later reach them on other Web sites; the audience must care enough about the messages to respond; costs must be in line with results. But meeting those conditions may be complicated. The system needs to capture appropriate data and interpret it correctly. Segmentation and selection rules must accurately reflect audience interests. Advertising content must be effective and reach a large enough audience. Individuals must not be contacted too often or at the wrong times. Vendor technology and services must match the marketer’s needs. campaigns will run undetected or, even Testing is one key to reaching these worse, the entire retargeting program goals. Other success factors include could be cancelled because the average effective program design, execution, and return is inadequate. result measurement. The retargeting campaign must be developed in Continuous optimization of the context of the company’s larger campaigns. Each retargeting campaign marketing strategy, both to ensure it has many individual components, has appropriate objectives and to allow including audience definition, selection meaningful assessment of its results. rules, ad locations, marketing messages, frequency limits, and Measure ROI for each campaign. cost targets. Each of these needs Measuring ROI in general depends on to be monitored and adjusted as the capturing accurate costs and revenues, campaign proceeds. Without this and in particular on having an attribution optimization, there is little chance of methodology that accurately measures retargeting reaching anything near its the incremental impact of each program full potential. on over-all results. Campaign ROI requires further refinement, looking Set measurable objectives for each at individual campaigns within the campaign. Retargeting campaigns may retargeting program. This is essential be designed to build brand awareness, for optimal results, since campaign attract new customers, generate performance can vary widely. Without incremental revenue, or meet other campaign-level analysis, unprofitable targets. Marketers need to define these 57% 89% 54% 93% ** Most Important Value Drivers* Set measurable objectives Continuous optimization Measure ROI for for each campaign of campaigns each campaignNote: This document is intended for individualuse. Electronic distribution via email or byposting on a personal website is in violation of * According to Top Performers, based on 146 Qualified Survey Responses to the Q4 2012 survey on Retargeting. * According to Top Performers, based on 135 Qualified Survey Responses to the Q3 2011 Gleanster surveythe terms of use. ** According to Everyone Else shown only when a notable disparity occurs relative to Top Performers **According Else, shown only when a notable disparity relative to Top PerformersEntire content © 2013 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  • Gleansight: Retargeting 9 goals explicitly in a way that they can be a system that meets them. They may measured. The metric will not always choose to start with one type of system be financial, since some goals have only and then move to another as their needs a loose relationship with actual revenue. evolve. Unique creative. The amount of Integrate data and activities acrossTypes of Retargeting content required for retargeting depends multiple systems. Retargeting on the number of segments. If many messages should be adjusted inProduct targets users based versions are needed, marketers must response to customer actions, suchon a specific product and/ordisplaying highly personalized have a cost-effective way to create as purchasing a product they hadrecommendations at a product level. the materials. This may be done previously considered. These actions manually, with standard templates that may take place in different systems,Demographic targets users are adapted for each version, or with whose data must be combined inbased on inferred information about dynamic content generators. Content an integrated customer view. Thisdemographic factors--includingage, gender, and social class- may include display ads, landing pages, integration takes place outside the-and creates specific audience special offers, coupons, and other retargeting system, but the resultsgroups to facilitate ad targeting. materials. Top Performers indicate must be stored in a location that is the tone of content used in retargeting immediately accessible. Failure to makeGeographic targets users campaigns can have a material impact these adjustments may significantlyby country or region. on the success of campaigns. In fact, damage the customer’s relationship withContextual (search retargeting) Top Performers frequently referenced the company, reversing many benefitstargets users based on digital a need to adjust the creative engaging gained from retargeting.content. Audience segments are and borderline humorous messagingcreated using a topic, keyword, Coordinate offers across channels.URL, or other page parameters to tends to drive the best click-through performance.. TAlthough retargeting messages arecustomize offers for each user. directly tailored to specific individuals,Behavioral (site retargeting) Robustness of features in the tool. those same people will also receivetargets users based on specific Retargeting systems vary greatly in untargeted company messages throughactions including keywords, pages scope and complexity. Some are other channels. The two sets ofvisited, or engagement with certainobjects on the web page. designed for self-service while others messages need not be identical, but are used primarily by the vendor’s nor should they conflict. To avoid this,Site List targeting enables advertisers own staff. Some provide just basic marketers must ensure that retargetingto specify the sites or sets of sites campaign set-up while others add messages are based on the sameon which to serve advertisements. automated optimization, dynamic brand platform as all other company content, self-tuning predictive models, messages. This takes special attention precise audience selection, semantic with system-generated dynamic analysis, message sequences, and messages, which may be assembled other capabilities. Marketers need to from components without being assess their own requirements and find individually reviewed. 0%** 29% 29% 43% Important Value Drivers* Integrate data and activities Robustness of Create uniqueNote: This document is intended for individual across multiple systems features in the tool creativeuse. Electronic distribution via email or byposting on a personal website is in violation of * According to Top Performers, based on 135 Qualified Survey Responses toto the Q4 2012 survey on Retargeting. to Top Performers, based on 146 Qualified Survey Responses the Q3 2011 Gleanster surveythe terms of use. **According to Everyone Else shown only when a notable disparity occurs relative to Top Performers ** According to Everyone Else, shown only when a notable disparity occurs relative to Top PerformersEntire content © 2013 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  • Gleansight: Retargeting 10 11% 14% 14% Less Important Value Drivers* Integration with: Establish minimum investment Coordinate offers email, mobile, social threshold to realize a return across channels **According to Top Performers, based on 135 Qualified Survey Responses to the Q3 2011 Gleanster survey According to Top Performers, based on 146 Qualified Survey Responses to the Q4 2012 survey on Retargeting. **According to Everyone Else shown only when a notable disparity occurs relative to Top Performers Integration with email, mobile, social. creative and set-up. Retargeting programs can capture behaviors that originate in media other Reuse existing creative. One way than a Web page. Pixels embedded in to reduce program costs is to reuse emails can drop cookies even before existing creative, often with slight a user clicks through to the specified modifications for different products or landing page. Mobile programs can offers. Making this work effectively capture responses and link them to requires that the creative itself be known customer identities. Social constructed in formats that allow easy retargeting may be based on shared modification. Sharing components messages that also drop cookies, or across multiple programs also expands use the social network’s own identity- the benefit received from testing, tracking mechanisms. Retargeting since winning designs can be applied messages can be delivered within to several programs simultaneously. whatever media can be linked to the However, marketers should also validate original customer identity: this may that the winning design for one program reside only within the original media or is in fact the best design for others. be available across several media. Establish a sufficient timeline to Establish minimum investment test benefits. Marketers will need to threshold to realize a return. Many gain experience with retargeting before retargeting systems require a minimum they know how best to use it. Initial number of impressions to function tests may not be profitable but could effectively. This quantity may not be lay the foundation for future success. available for a particular retargeting Marketers should plan to fund several message if few people take the targeted money-losing research projects before action, or if those people are not found they can accurately assess the relative on other Web sites that can display the value of retargeting compared with other ads. Marketers also need a minimum marketing programs. volume to cover fixed costs for programNote: This document is intended for individualuse. Electronic distribution via email or byposting on a personal website is in violation ofthe terms of use.Entire content © 2013 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  • Gleansight: Retargeting 11 Part 4: ChallengesOther Key Features Although retargeting has proven successful in many organizations, a new deployment still faces challenges. Marketers must first fundUnique features in some an adequate budget for initial set-up and tests. They must thenRetargeting platforms include: educate themselves on how the programs work, define clear successFrequency Caps. Frequency is measures, and find a suitable attribution technique They need tothe number of times a specific ad isdisplayed to a user in a given period select a vendor and integrate with corporate systems. They need toof time. Frequency caps allow users design the initial programs, create appropriate content, overcome anyto limit the number times a usersees a particular advertisement regulatory or privacy issues, and ensure the audience is large enoughto help manage brand fatigue. to be worthwhile. Once they achieve initial success, they’ll need toSplit tests. Similar to website a/b justify shifting operational funds into retargeting from other programs.testing and multi-variant testing,users can run multiple retargeting Overcoming these challenges requires the situation: people stay in the marketcampaigns and determine the optimal a clear understanding of the process, for some products much longer thanmessage, frequency, and reach. adequate commitment to initial others. projects, clear planning, disciplinedRecency optimization. Sometimes the execution, and management support. Adequate attribution methodology.flow of data across retargeting platforms Marketers should learn from others’ Accurately measuring the impactand ad networks leads to delays in the success and rely as necessary on of individual marketing programs istimeliness of information used to trigger always difficult. Retargeting faces external resources, including vendorscampaigns. For some keywords, there’s specific challenges because its and consultants, to help manage theno point in triggering an impression if advertising messages may be seenusers rarely convert after a set period process. without generating an explicit response.of time. The ability to manage and Managing potential brand fatigue. Marketers can best overcome thismonitor recency of search criteria Repeated retargeting messages could limit through formal split testing, whichis unique to a handful of vendors. easily annoy a prospect, and would divides a pool of similar customers have diminishing returns even if they into two groups, sends retargetingCustomer data uploads. Internalcustomer data can be loaded to a didn’t. Retargeting systems prevent this messages to only one group, andretargeting solution and used to by setting caps on how many times the compares their long-term performance.target key prospects and customers same person sees the same message, Fortunately, retargeting lends itself towithout an initial website visit from how close in time the messages are this sort of testing more easily thanthese individuals. Customer data presented, and how long after the many other marketing techniques.can also be used in conjunction with initial event the person remains active. Additionally, new generations ofdata management platforms to locate These rules are controlled by the retargeting platforms are starting tonew audiences or optimize existing marketer and can be adjusted based on address this challenge by trackingcampaigns based on past success. 48% 71% 77%18% ** Most Challenging Aspects* Consumer privacy Adequate attribution Managing potentialNote: This document is intended for individual concerns methodology brand fatigueuse. Electronic distribution via email or byposting on a personal website is in violation of * * Accordingto Top Performers, based on 146 Qualified Survey Responses to the Q3 2011 Gleanster survey According to Top Performers, based on 135 Qualified Survey Responses to the Q4 2012 survey on Retargeting.the terms of use. **According to Everyone Else shown only when a notable disparity occurs relative to Top PerformersEntire content © 2013 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  • Gleansight: Retargeting 12 engagement all the way to the final sale. set-up, and content creation. If Some retargeting solution providers adequate funds are not immediately even offer pricing that is exclusively available, marketers may be able to try based on measurable lift in sales. alternative retargeting methods that require lower initial investment. Given Consumer privacy concerns. Most the generally high success rate of consumers realize that their Web retargeting, most departments should behaviors are tracked to some degree. be able to find a way to fund at least a But companies must still be sensitive small initial test. to consumers’ personal attitudes and to general public opinion. Retargeting Generating appropriate content. programs should collect the minimum Retargeting programs need compelling data necessary, inform consumers of content to entice customers to return for data collection practices, and provide another look, or even to just stand out opt-out where feasible. Advertising in the general fog of online advertising. should display specific information Marketers may find this hard to create, sparingly: targeting can be based especially in the early stages when they on recorded behaviors without that have no previous experience with what information in the resulting ad. works. Aggressive early testing can help fill this gap, along with advice from Adequate audience reach and data. A vendors, agencies, and consultants who company may simply not have enough can draw on experience elsewhere. volume for the remarketing program it wants to test. In this case, it may be Accurately personalizing messages. possible to design a broader program Most retargeting programs rely that will include more people, to run heavily on cookies to track individual the program over a longer period, or customers. Cookies are not a perfect to include more customer sources mechanism, since they can be deleted such as email and social messages. and they identify a computer, which If the problem is too few advertising may be shared by several users. The opportunities for the retargeting cookies in turn may be linked with other messages, a different retargeting data, such as the name provided with vendor may have a larger advertising a purchase made on the computer. inventory, or there may be options to run This linkage could also be wrong. The ads on a broader range of Web sites. more specific the information used by a retargeting program, the more likely Budget constraints. A new retargeting an error. Marketers can minimize this program needs an adequate budget to problem by avoiding unnecessary meet minimum volume requirements personalization. and to cover fixed costs for training, 42% 18% 42% 71% ** ** 48% Challenging Aspects* Generating appropriate Budget contraints Adequate audienceNote: This document is intended for individual content reach and datause. Electronic distribution via email or byposting on a personal website is in violation of * According to Top Performers, based on 135 Qualified Survey Responses to to the Q4 2012 survey on Retargeting.the terms of use. * According to Top Performers, based on 146 Qualified Survey Responses the Q3 2011 Gleanster survey **According to Everyone Else shown only when a notable disparity occurs relative to Top PerformersEntire content © 2013 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  • Gleansight: Retargeting 13 18% 36% 36% Less ChallengingNote: While Gleanster strives to Aspects*include all of the most relevant andnoteworthy solution providers in theVendor Landscape section, the list Lack of staff Integration with other Accurately knowledge marketing programs personalizing messagesis by no means comprehensive innature. Omissions may occur due to * * Accordingto Top Performers, based on 135 Qualified Survey Responses to the Q3 2011 Gleanster survey According to Top Performers, based on 146 Qualified Survey Responses to the Q4 2012 survey on Retargeting.lack of sufficient market presence, **According to Everyone Else shown only when a notable disparity occurs relative to Top Performersas judged by the Gleanster researchanalyst team. Space constraints maynecessitate some amount of paring Integration with other marketing Justifying value compared to levelof even those vendors that do havesufficient market presence. Simple programs. Retargeting programs of effort. Setting up and running aoversights may also happen on sometimes generate revenue by retargeting program takes a certainoccasion. To submit information about themselves, but they more often feed amount of staff time, even for highlya solution provider, please complete customers into existing programs automated systems. A small,the Solution Provider InformationForm. To schedule a vendor briefing, for acquisition, upsell, and cross time-intensive retargeting program mayplease email research@gleanster. sell. These programs must capture generate less value than spending thecom. Vendor descriptions are taken information necessary to identify same time on another marketing project.verbatim from company websitesor from vendor-submitted profile customers who were influenced by the This could be true even if the retargetinginformation. Gleanster Skinny (GS) retargeting program. Otherwise, even a program had a higher ROI. Marketerscommentaries are based on vendor successful retargeting program may not who are concerned about the timebriefings, customer interviews andGleansight research findings as well appear profitable. investment can outsource more of theiras on company press releases and retargeting work to a vendor or agency,various other information sources. Lack of staff knowledge. Although although this may raise the program’s retargeting is not especially difficult, it out-of-pocket cost. does require learning a new process and systems. This takes time which Adequate systems and technology. marketers could easily spend on other, Most of work in retargeting is done more pressing projects. Unless a staff by vendor systems, which are well member has already done retargeting proven to be adequate. However, in a previous job, someone in the these much interact with the company marketing department will need to set Web site and possibly with other aside time to learn about remarketing. corporate systems. Some companies Management will have to make this a may have problems setting up those priority or it probably won’t happen. connections or extracting usable data, especially if their systems are old or Regulatory constraints. Apart from highly customized. There could also special situations such as health-related be problems with analytical systems to data, personally identifiable information, evaluate results. These problems don’t and data about children, there are have easy solutions, but none are fatal few legal rules that directly constrain to a successful retargeting program. retargeting. However, marketers must still be certain to explore the precise rules that do apply to their situation and to comply fully. They should also take care to understand exactly where and how collected data is stored withinNote: This document is intended for individual the retargeting system itself, sinceuse. Electronic distribution via email or by there may be hidden repositories withposting on a personal website is in violation ofthe terms of use. unexpected contents.Entire content © 2013 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  • Gleansight: Retargeting 14 Part 5: Performance MetricsWhat does that mean? Retargeting programs can be measured like other Web advertising,Definitions and jargon for measuringthe success of retargeting efforts. using click rates, cost per click, cost per action, and site visits. But those measures are designed primarily for programs intended to drive WebCPA. Cost-Per-Acquisition is essentially traffic. Retargeting programs may other goals, such as increasing brandperformance based advertising. Thesolution provider assumes all the awareness, encouraging future site visits, or expanding lifetime value.risk, and you only pay when someoneactually completes a transaction. Those goals require other measures that use information gathered outside of the retargeting transaction itself: brand attitudes are usually basedCPC. Cost-Per-Click is a common on surveys, while lifetime site visits and purchases are tracked in Webmetric for pricing from vendors. You pay analytics and accounting systems. This information must then be tiedevery time a user clicks one of your ads. to retargeting program participants, ideally in the context of a controlledCPE. Cost-Per-Engagement means test that compares performance of participants to otherwise-similaradvertisers pay when a user engages non-participants. If controlled tests are not available, measures may needwith the ad, (such as a mouse rolloveror playing a video). This emerged as a to employ attribution techniques that estimate the indirect influence ofway of tracking physical engagement retargeting contacts. .with a product recommendationbeyond a mere impression. Marketers also need measures identifies additional value created by the related to program execution, such as retargeting program, but may overstateCPM. Cost per 1,000 impressions staff time, creative costs, and other the value since other marketing(M is the roman numeral for non-media expenses. These help programs may have also contributed to1,000). This is a common pricing determine whether retargeting is the the subsequent conversion. “Fractionalmodel for retargeting vendors. best use for limited staff resources. attribution” techniques attempt to assign Because retargeting may raise privacy the correct share of the value to eachClick Through Rate (CTR). The issues, marketers should also keep program that touches a customer,percentage of users who saw an eye on customer complaints and although doing this accurately is veryan ad and actually clicked it. opt-outs. challenging.Frequency. The rate a particular Click-through conversions. This is Cost per conversion. This is auser is exposed to specific the percentage of people who click on fundamental measure for mostcreative or campaign during a an ad who later complete a specified retargeting programs. It is mostdesignated period of time. conversion action, such as filling out a effective where the conversion action form or making a purchase. It makes is a direct measure of the programImpression. The display of a single most sense when marketers pay per goal, such as revenue in a revenue-piece of creative to a web site user. Anindividual page can generate more than click, since it can be combined with generating program or new customerone impression if there is more than the cost per click to calculate a cost registration in an acquisition program.one ad space available on the page. per conversion. This, in turn, can be The measure makes less sense for combined with the value per conversion programs with goals that cannot be to calculate a profit per click (value – measured by a conversion action, such cost) or Return on Investment (value / as brand awareness. cost, or, more properly, profit / cost). ROI on marketing spend. Return on View-through conversions. This is investment is properly calculated as a the percentage of people who view an ratio of profit to expense, although it ad who later complete the conversion is often calculated as the revenue-to- action. Unlike cost-through conversion, expense ratio instead. Either way, theNote: This document is intended for individualuse. Electronic distribution via email or by it captures conversions from people real challenge is the same as with otherposting on a personal website is in violation of who do not click on the ad itself. This revenue figures: determining how muchthe terms of use.Entire content © 2013 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  • Gleansight: Retargeting 15 80% 64% 92%64% ** 88% ** Most Common Metrics* Cost per View-through Click-through conversion conversions conversions * According to Top Performers, based on 146 Qualified Survey Responses to the Q4 2012 survey on Retargeting. * According to Top Performers, based on 135 Qualified Survey Responses to the Q3 2011 Gleanster survey ** According to Everyone Else, shown only when a notable disparity occurs relative to Top Performers **According to Everyone Else shown only when a notable disparity occurs relative to Top Performers revenue to attribute to the marketing based measures, the number of leads program. generated only credits the retargeting program for actions captured through Revenue from retargeting spend. the program’s own content. Responses This applies to all types of retargeting the program may have influenced, programs intended to generate direct but did not capture directly, are lost. revenue, as opposed to programs This measure also focuses strictly on aimed at influencing brand attributes. new customers, so it does not give The specific meaning will depend on the retargeting program credit for any how revenue is calculated: it might increase in activity it causes among include only immediate purchases existing customers. by new customers who enter through retargeting, or all purchases by all Stage-to-stage conversion rates. customers ever touched by retargeting, Stage conversion rates measure the or something in between. When movement of prospects through the using this figure, marketers need to buying cycle, typically in a progression understand how it was generated and of attitudes such as awareness, interest, ensure it is suitable for the intended consideration, and action. Breaking purpose. the process into stages makes it easier to measure the impact of programs Number of leads generated. This is a that are aimed at particular transitions, key measure for acquisition programs. such as moving a prospect from being There may be additional stages before interested in a product to considering a lead becomes a paying customer, it a viable purchase option. Search but those occur after the lead has retargeting programs often aim at first been attracted by the retargeting the initial stages of this process, program. Like all other response- making prospects aware of a product 73% 57% 78% 57% ** 66% ** Common Metrics* Precentage of target Revenue from ROI on marketing audience reached retargeting spend spendNote: This document is intended for individualuse. Electronic distribution via email or by **According to Top Performers, based on 135 Qualified Survey Responses toto the Q4 2012 survey on Retargeting. According to Top Performers, based on 146 Qualified Survey Responses the Q3 2011 Gleanster surveyposting on a personal website is in violation ofthe terms of use. **According to Everyone Else shown only when a notable disparity occurs relative to Top Performers ** According to Everyone Else, shown only when a notable occurs relative to Top PerformersEntire content © 2013 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.
  • Gleansight: Retargeting 16 23% 28% 30% NUMBERS Less Common Percentage of Top Performers (compared to Metrics* 65 13% of Everyone Else) using retargeting. Cost per order Time spent on site Stage-to-stage conversion rates * * Accordingto Top Performers, based on 146 Qualified Survey Responses to the Q3 2011 Gleanster survey According to Top Performers, based on 135 Qualified Survey Responses to the Q4 2012 survey on Retargeting. **According toto Everyone Else, shown only when a notable disparityoccurs relative to Top Performers ** According Everyone Else shown only when a notable disparity occurs relative to Top PerformersPercentage of all respondents or interested in exploring it. Site retargeting messages. It helpsallocating >$50,000 to 32retargeting annually. retargeting programs are more focused marketers to understand the factors on driving customers to action. As with influencing program results. If the revenue, it can be hard to measure the proportion is small, even a highly impact of a particular marketing program attractive program may not generate on stage conversions. enough volume to be worth the effort. Time spent on site. This is an Lifetime value of customers acquired Percentage of Top engagement measure, used to through retargeting. Lifetime value Performers engaging in determine how interested site visitors includes the sum value of all past and 44 retargeting for the stated are in the company or its products. future transactions. Since the future purpose of “General It provides insight into the quality value is an estimate, the figure is always Branding & Awareness” of traffic a program generates, somewhat uncertain. It is used to supplementing figures on the volume set allowable acquisition costs and to such as the number of clicks or compare the quality of customers from visitors. Engagement may predict different sources. The usual challenges future behavior, such as purchases apply of identifying truly incrementalPercentage of B2C companies and lifetime value. and can thus help results – in this case, finding whichengaged in retargeting to estimate the long-term value of a people would not have becometo personalize productsafter online shoppingcart abandonments. 26 retargeting program. Percentage of target audience customers without the retargeting program. This measure ignores any increase in lifetime value that retargeting reached. This measures how many may cause among current customers. people who took the original target activity will later be reached through Percentage of All Respondents indicating 45 they have not engaged in retargeting because “it’s unclear how retargeting works”Percentage of Top Performersoffering “special offerings anddiscounts” via retargeting. 16 Note: This document is intended for individual use. Electronic distribution via email or by posting on a personal website is in violation of the terms of use. Entire content © 2013 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction is prohibited.