Android Tablet<br />Search<br />Get More Customers<br />Buy<br />Search ReMarketing<br />Using SearchReMarketing to lower ...
Being Practical: Search Remarketing to lower Cost of Acquisition<br />#1  the background<br />eCommerce has two types of s...
Being Practical: Search Remarketing to lower Cost of Acquisition<br />#2  overall conversion rates<br />Site Average<br />...
Being Practical: Search Remarketing to lower Cost of Acquisition<br />#3  typical conversion rates by marketing channels<b...
Being Practical: Search Remarketing to lower Cost of Acquisition<br />#4  search marketing v/s display marketing<br />Sear...
Being Practical: Search Remarketing to lower Cost of Acquisition<br />#5  how conversion metrics work<br />Display Marketi...
Being Practical: Search Remarketing to lower Cost of Acquisition<br />#6  acquiring one customer by:<br />Display Marketin...
Being Practical: Search Remarketing to lower Cost of Acquisition<br />#7  so now you know that:<br />>  Though CPCs are on...
Being Practical: Search Remarketing to lower Cost of Acquisition<br />#8  what is Search to Display Remarketing<br />Part ...
Being Practical: Search Remarketing to lower Cost of Acquisition<br />#9  why Search to Display Remarketing is effective<b...
Being Practical: Search Remarketing to lower Cost of Acquisition<br />#9  why Search to Display Remarketing is effective<b...
Being Practical: Search Remarketing to lower Cost of Acquisition<br />#9  why Search to Display Remarketing is effective<b...
Being Practical: Search Remarketing to lower Cost of Acquisition<br />#9  why Search to Display Remarketing is effective<b...
Being Practical: Search Remarketing to lower Cost of Acquisition<br />#9  why Search to Display Remarketing is effective<b...
Being Practical: Search Remarketing to lower Cost of Acquisition<br />#10  Closing Remarks!<br />1:   Do not treat Search ...
#thank-you<br />Note:  All thoughts, concepts mentioned and views expressed are made in personal capacity.<br />          ...
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Search to Display Remarketing

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Online Marketing - How to use Search to Display ReMarketing to lower Cost of Acquisition

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Transcript of "Search to Display Remarketing"

  1. 1. Android Tablet<br />Search<br />Get More Customers<br />Buy<br />Search ReMarketing<br />Using SearchReMarketing to lower Cost of Acquisition<br />03, May 2011<br />pj | pj@beingpractical.com | www.beingpractical.com<br />
  2. 2. Being Practical: Search Remarketing to lower Cost of Acquisition<br />#1 the background<br />eCommerce has two types of sales:<br />a. Impulse Buys<br /> - Low priced product or service; More of Direct Marketing<br /> - Impulse because of offer and deals<br /> - Driven by on-site marketing or direct marketing<br /> - Mode of acquiring new consumers; wafer thin margins – profits only at scale/volumes<br /> - Typically products are sold just above the cost price (if branded product)<br /> - Or a notional discount if the product is unbranded<br />b. Intent driven Buys<br /> - Branded product or high priced<br /> - Requires consumer to indulge, categorized as conscious purchase decisions<br /> - User completes full AIDA cycle (Attention, Interest, Desire and Action)<br /> - User discovers this product – through search (paid, natural or on-site)<br />Note: Impulse Buys gives Volumes; Intent Buys gives Margins<br />typically only for product driven ecommerce ventures; verticals like travel, services, etc - vary<br />www.beingpractical.com pj@beingpractical.com<br />copyright: beingpractical.com<br />
  3. 3. Being Practical: Search Remarketing to lower Cost of Acquisition<br />#2 overall conversion rates<br />Site Average<br />1% - 2%<br />Requires average 100 visitors from all channels to complete 1 transaction<br />Conversion rates greater than 1% depends on:<br /> - Usability, Navigation of the website<br /> - Tools to discover products & offers (long tail discovery)<br /> - Payment options available<br /> - Locations Serviced<br /> - On-site Marketing & Personalization<br /> - Ownership of Category (Ex. Amazon for Books)<br /> - Brand, Customer Service, Loyalty (all built over time)<br />Note: The presentation may be valid for product ecommerce services; Numbers and examples for deals, travel, classified and other services may vary Though the concept of Search Remarketing will be applicable to all verticals<br />www.beingpractical.com pj@beingpractical.com<br />copyright: beingpractical.com<br />
  4. 4. Being Practical: Search Remarketing to lower Cost of Acquisition<br />#3 typical conversion rates by marketing channels<br />Visitors per Customer Acquisition<br />Email<br />80 – 125 visitors<br />0.80% to 1.25%<br />Direct Site<br />110 – 135 visitors<br />0.75% to 0.90%<br />Unpaid Channels <br />SEO<br />135 – 225 visitors<br />0.45% to 0.75%<br />Social<br />500 – 1000 visitors<br />0.10% to 0.20%<br />Search Marketing<br />50 – 65 visitors<br />1.5% to 2%<br />Paid Channels<br />Display Advts<br />250 – 390 visitors<br />0.25% to 0.40%<br />Social Advertising<br />285 – 1000 visitors<br />0.10% to 0.35%<br />Affiliates<br />145 – 250 visitors<br />0.4% to 0.7%<br />www.beingpractical.com pj@beingpractical.com<br />copyright: beingpractical.com<br />
  5. 5. Being Practical: Search Remarketing to lower Cost of Acquisition<br />#4 search marketing v/s display marketing<br />Search Marketing:<br />> Very high user intent<br />> User searching for product / service> Enticed more towards – Intent based marketing<br />Display Marketing:<br />> Enticed more towards – Impulse buying (if good offer/deal)<br />> Very low on user intent<br />> Spray and pray approach<br />Conversion Rate: Search Marketing > Display Marketing<br />Conversion rates on traffic acquired through search marketing are 5X-6X times more likely to convert compared to traffic acquired through display marketing.<br />www.beingpractical.com pj@beingpractical.com<br />copyright: beingpractical.com<br />
  6. 6. Being Practical: Search Remarketing to lower Cost of Acquisition<br />#5 how conversion metrics work<br />Display Marketing:<br />Search Marketing:<br />50 - 65<br />250 - 390<br />Visits to convert:<br />Visitors per conversion<br />Visitors per conversion<br />1% - 3%<br />0.1% - 0.2%<br />CTRs:<br />Typical click-thru-rate on paid search<br />Typical click-thru-rate on display banners<br />10 - 15 INR<br />4 - 10 INR<br />Avg CPCs:<br />Avg Cost per Clicks on with good spanof keywords & campaigns<br />Avg Cost per Clicks by various NetworksGoogle display rates on lower average<br />Numbers shown in INR (Indian National Rupee)<br />www.beingpractical.com pj@beingpractical.com<br />copyright: beingpractical.com<br />
  7. 7. Being Practical: Search Remarketing to lower Cost of Acquisition<br />#6 acquiring one customer by:<br />Display Marketing:<br />Search Marketing:<br />500 - 975 INR<br />1000 – 3900 INR<br />Cost of Customer Acquisition:<br />to acquire one customer through search<br />to acquire one customer through display<br />Lower Price Range for Search: = (Lowest CPC) x (Min Clicks to Convert) = 10 x 50<br /> = 500<br />Lower Price Range for Display: = (Lowest CPC) x (Min Clicks to Convert) = 4 x 250<br /> = 1000<br />Highest Price Range for Search: = (Highest CPC) x (Max Clicks to Convert) = 15 x 65<br /> = 975<br />Highest Price Range for Display: = (Highest CPC) x (Max Clicks to Convert) = 10 x 390<br /> = 3900<br />Numbers shown in INR (Indian National Rupee)<br />www.beingpractical.com pj@beingpractical.com<br />copyright: beingpractical.com<br />
  8. 8. Being Practical: Search Remarketing to lower Cost of Acquisition<br />#7 so now you know that:<br />> Though CPCs are on higher side in Search Marketing; conversions are also high.<br />> If you have tried using display marketing for conversions before (directly or through any advt-networks) – conversions would be low with high cost of acquisition> Display Marketing seems tempting in comparison to Search for low CPCs<br />Now welcome to: Search to Display Remarketing<br />www.beingpractical.com pj@beingpractical.com<br />copyright: beingpractical.com<br />
  9. 9. Being Practical: Search Remarketing to lower Cost of Acquisition<br />#8 what is Search to Display Remarketing<br />Part 1: Get users from Search Marketing<br />> Increase CPC spend on Search Marketing to get more users with high intent<br />> X number of users will get converted to customers> Y number of users will drop out<br />Part 2: Target search drop-outs on Display Networks<br />> Y users still have high intent and now they know about your service<br />> Target these Y users on display networks with higher CPCs / CPMs> Show contextual and relevant display advertisements w/t correct landing pages<br />www.beingpractical.com pj@beingpractical.com<br />copyright: beingpractical.com<br />
  10. 10. Being Practical: Search Remarketing to lower Cost of Acquisition<br />#9 why Search to Display Remarketing is effective<br />Step 1: Acquire users through Search Marketing:<br />50 - 65<br />Visitors per conversion<br />12 - 20 INR<br />CPC - Increase Paid Search by 20-45%<br />Get more valuable clicks with high intent<br />Search Dropouts<br />600 - 1300 INR<br />Cost to acquire one customer<br />Customer Acquired<br />Numbers shown in INR (Indian National Rupee)<br />www.beingpractical.com pj@beingpractical.com<br />copyright: beingpractical.com<br />
  11. 11. Being Practical: Search Remarketing to lower Cost of Acquisition<br />#9 why Search to Display Remarketing is effective<br />Step 2: Know the value of dropped out users<br />High Purchase Intents<br />In simplistic terms<br />588 - 1280 INR<br />In monetary terms<br />Search Dropouts<br />Customer Acquired<br />Numbers shown in INR (Indian National Rupee)<br />www.beingpractical.com pj@beingpractical.com<br />copyright: beingpractical.com<br />
  12. 12. Being Practical: Search Remarketing to lower Cost of Acquisition<br />#9 why Search to Display Remarketing is effective<br />Step 3: ReMarket to search dropoutusers now on Display Networks<br />Buy Now<br />Buy Now<br />Targeted displayadvertisements<br />Buy Now<br />Search Dropouts<br />10 - 15 INR<br />> Increase CPC on such targeted display advts<br />> Communicate most relevant messaging<br />> Apply techniques like Frequency Capping at impression/click levels<br />www.beingpractical.com pj@beingpractical.com<br />copyright: beingpractical.com<br />
  13. 13. Being Practical: Search Remarketing to lower Cost of Acquisition<br />#9 why Search to Display Remarketing is effective<br />Step 3: ReMarket to search dropoutusers now on Display Networks<br />1 Customer<br />Acquired originally through Search Marketing<br />Search + Display Dropouts<br />2 - 3 Customers<br />Customers acquired through Display Re Marketing<br />Customer Acquired thru <br />Display Remarketing<br />3 - 4 Customers<br />Customer Acquired thru Search<br />Total Customers Acquired<br />www.beingpractical.com pj@beingpractical.com<br />copyright: beingpractical.com<br />
  14. 14. Being Practical: Search Remarketing to lower Cost of Acquisition<br />#9 why Search to Display Remarketing is effective<br />Step 4: Summarize effectiveness of Search Remarketing<br />1090 - 2260 INR<br />Total Costs:<br />Search Cost (600 – 1300 INR) + Display Remarketing Cost (490 – 960)<br />3 - 4<br />Customers Acquired:<br />Search (1 Customer) + Display Remarketing Cost (2-3 Customers)<br />363 - 572 INR<br />Cost per Customer Acquired:<br />Much lower than earlier Customer Cost of Acquisitions<br />www.beingpractical.com pj@beingpractical.com<br />copyright: beingpractical.com<br />
  15. 15. Being Practical: Search Remarketing to lower Cost of Acquisition<br />#10 Closing Remarks!<br />1: Do not treat Search and Display as separate channels to acquire customers<br />2: Search Remarketing through Display will help reduce your cost of acquisitions by 25% to 65%*<br />3: Always look for cross-channel marketing opportunities<br />* High reduction of acquisition cost if only one category of products/services are offered. <br />Read between the lines – you will find means to reduce cost of acquisition further by 10% to 20%. Or mail me for details – pj@beingpractical.com<br />Want more?:<br />www.beingpractical.com pj@beingpractical.com<br />copyright: beingpractical.com<br />
  16. 16. #thank-you<br />Note: All thoughts, concepts mentioned and views expressed are made in personal capacity.<br /> All brands mentioned here owned by respective owners.<br />www.beingpractical.com pj@beingpractical.com<br />

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