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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 
Greatest Thing Ever! 
Image property of FollowYu, Inc. 
Money-Sucking Pit of Despair! 
“I love retar...
#smx #34C 2 Oct 2014 
Retargeting? WTH? 
Why the Debate? 
Answer: Retargeting works (or does not work) 
based on core fina...
#smx #34C 2 Oct 2014 
Basic Equation for Success 
How Advertising Works 
Cost of Media 
Engagement Value Created 
Feel fre...
Channel Leads CPL 
Google 450 $125 
Bing 50 $85 
Organic 113 $22 
Retargeting 215 $130 
Facebook 35 $725 
Billboards who k...
Retargeting is NOT a channel! It is an 
add-on cost that is potentially justified by 
an increase in conversion 
Assessing...
#smx #34C 2 Oct 2014 
How Advertising Works with Retargeting 
Cost of Media 
Engagement Value Created 
Add-On Cost of 
Ret...
The “A” Word and User Behavior 
Retargeting is an attribution issue, but a really 
easy one to address and understand. 
#s...
The “A” Word and User Behavior 
Retargeting ads increase awareness that 
can accelerate and increase conversion. 
#smx #34...
Example Metrics (Bear With Me) 
If No Retargeting 
But wait.… 
#smx #34C 2 Oct 2014 
Retarg. True True 
Channel Cost Leads...
$150 Value Per Lead $1500 Value Per Lead 
#smx #34C 2 Oct 2014 
Example Metrics (Part Deux) 
The good stuff… 
True TRUE 
C...
Why is Retargeting an “Easy” Attribution Issue? 
Because we can easily test to understand the 
performance if retargeting ...
Lift is the gain in conversion from retargeting over 
the naturally occurring conversion of that audience. 
#smx #34C 2 Oc...
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 ...
#smx #34C 2 Oct 2014 
Case Study: Optimizable 
Case Study of Client with Poor Initial Results 
• 14% Lift 
• $273 Value Pe...
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 ...
• Retargeting CANNOT be treated as a channel 
• Retargeting is, by definition, an attribution 
issue 
• Do the right math ...
#smx #34C 2 Oct 2014 
Thank you 
Soren Ryherd 
soren@workingplanet.com 
@sorenryherd 
WorkingPlanet.com 
401-383-3600 
@wo...
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I [Love/Hate] Retargeting! How To Know If Retargeting Work For You By Soren Ryherd

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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 #34C

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I [Love/Hate] Retargeting! How To Know If Retargeting Work For You By Soren Ryherd

  1. 1. I [Love|Hate] Retargeting! How to Know if Retargeting Works for You Soren Ryherd, President, Working Planet #smx #34C
  2. 2. #smx #34C 2 Oct 2014 About Working Planet
  3. 3. #smx #34C 2 Oct 2014 Greatest Thing Ever! Image property of FollowYu, Inc. 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?
  4. 4. #smx #34C 2 Oct 2014 Retargeting? WTH? Why the Debate? Answer: Retargeting works (or does not work) based on core financial metrics, which differ radically from company to company
  5. 5. #smx #34C 2 Oct 2014 Basic Equation for Success How Advertising Works Cost of Media Engagement Value Created Feel free to apply this everywhere…
  6. 6. Channel Leads CPL Google 450 $125 Bing 50 $85 Organic 113 $22 Retargeting 215 $130 Facebook 35 $725 Billboards who knows… #smx #34C 2 Oct 2014 Classic Channel Centrism
  7. 7. 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 #smx #34C 2 Oct 2014 tools Really, just stop. Not a Channel!
  8. 8. #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
  9. 9. The “A” Word and User Behavior Retargeting is an attribution issue, but a really easy one to address and understand. #smx #34C 2 Oct 2014 Non-Brand Search Brand Search Brand Search Direct Conversion! Non-Brand Search Brand Search Non-Brand Search
  10. 10. The “A” Word and User Behavior Retargeting ads increase awareness that can accelerate and increase conversion. #smx #34C 2 Oct 2014 R R Non-Brand Search Brand Search Direct Conversion! R Non-Brand Search Brand Search Non-Brand Search Conversion! R R
  11. 11. Example Metrics (Bear With Me) If No Retargeting But wait.… #smx #34C 2 Oct 2014 Retarg. True True Channel Cost Leads CPL Conv Cost Leads CPL LIFT CR Leads CPL CPL Impr Google $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 $771.50 Pandora $5,625 45 $125 1.12% $2,600 20 $183 48% 0.76% 30 $185 $2.22 Direct $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
  12. 12. $150 Value Per Lead $1500 Value Per Lead #smx #34C 2 Oct 2014 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 $67,760 Organic $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) $26,215 Pandora $8,225 45 $183 1.12% ($1,064) ($1,475) $39,983 $59,275 Direct $5,590 135 $41 5.45% $13,149 $14,660 $131,494 $196,910 Total: $127,526 828 $154 2.06% ($9,867) ($3,326) $747,204 $1,114,474
  13. 13. 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. #smx #34C 2 Oct 2014 Yay
  14. 14. Lift is the gain in conversion from retargeting over the naturally occurring conversion of that audience. #smx #34C 2 Oct 2014 How to Understand LIFT Retargeting Segment Retargeted Ad PSA 3.31% Conv 2.47% Conv 34% Lift
  15. 15. 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 #smx #34C 2 Oct 2014 Case Study: All Good Case Study of Client with Great Results • 138% Lift • $1,943 Value Per Sale Retarg. True Results: +$184k in post-marketing revenue 412% ROI on retargeting investment Take Home: High Lift + High Customer Value = Big Win
  16. 16. #smx #34C 2 Oct 2014 Case Study: Optimizable Case Study of Client with Poor Initial Results • 14% Lift • $273 Value Per Lead • 14% Lift • $313 Value Per Lead Results: Moved Retargeting from Hindrance to Help Take Home: Audience Segmentation Can Turn Numbers Around * Normalized for extrapolated equal spend 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
  17. 17. 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 Case Study: Bleah Case Study of Client: “It’ll Never Work” • 11% Lift • $14 Value Per Sale Retarg. True Results: $13k loss by adding retargeting Take Home: Reduced Opportunity to Segment + Lower Value = Hard Problem
  18. 18. • 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 #smx #34C 2 Oct 2014 Summary
  19. 19. #smx #34C 2 Oct 2014 Thank you Soren Ryherd soren@workingplanet.com @sorenryherd WorkingPlanet.com 401-383-3600 @workingplanet Thank You

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