Find Marketers know that data-driven ad targeting is a prime opportunity for reaching customers with content that they care about. In an Ascend2 research study, 44% of marketers said that data-driven personalization was one of the most effective ways to improve search and social advertising performance. Retargeting was ranked highest at 45%.
Retargeting, as we’ve previously discussed, can be a highly effective way to engage with segmented audience members who’ve already shown an interest in your product or service. The average click-through rate for a retargeted ad is 0.7%—a 10x improvement on a traditional display ad that doesn’t use data-driven segmentation.
However, many marketers are failing to deploy data-driven personalization campaigns in effective ways, and as a result, they’re moving away from this powerful strategy. In fact, Gartner predicts that by 2025, 80% of marketers will abandon personalization efforts due to lack of ROI or the difficulties of customer data management.
So what’s the problem?
Even if you’ve built highly personalized ad campaigns, you’ll fail to generate a positive ROI if you’re not reaching enough people. Focusing on increasing your audience size and targeting them with the right content at the right time are both crucial to building a successful programmatic ad campaign.
Here are some best practices to follow:
- Use a full-funnel approach to reach prospective customers
Instead of focusing only on the limited pool of customers who’ve demonstrated purchase intent by visiting a product page, integrate traditional display and search advertising with your retargeting to reach buyers across every stage of the funnel. By using display and search advertising to generate awareness of your company, you can then add users who visit your website, follow your social media accounts, or sign up for email lists to your retargeting campaigns, giving you a much broader audience pool to draw from. Marketo found that 96% of visitors aren’t ready to buy on the first visit to your site, so combining an initial reach-focused campaign to build awareness with an ongoing retargeting campaign will help you drive prospects through the conversion funnel over time.
- Segment your retargeted users based on their behavior
Instead of segmenting users based on narrow demographic data such as location or age, focus on segmenting them with separate ad campaigns based on their past interactions with your brand across the web. Ad campaigns can be segmented on a highly personalized level, based on criteria such as which email newsletter they opened, which social link they followed, or which product page they visited. For example, if a user has previously clicked on an ad for your brand and then added an item to an online shopping cart but abandoned the purchase, you can set up an ad featuring that exact product and a “forgot something?” tagline to use in your retargeting campaign. Over 75% of online shopping carts are typically abandoned, but a strategic retargeting campaign will encourage 30% of those visitors to return.
- Use a multi-platform retargeting solution to reach your entire audience
Facebook’s display ad network reaches roughly 25% of the entire online audience, and Google reaches similar numbers. If you focus on only one of those platforms, or even both, you’re only reaching a fraction of your total audience.You can extend your reach and enhance your audience segmentation by making use of a multi-platform solution that enables you to set up universal ad campaigns to run across all platforms, including Facebook, Google, and many smaller programmatic ad marketplaces. With this kind of tool, you’ll be able to easily manage your real-time bidding strategy, visualize your campaign results, and gain better insights into which platforms, segments, and campaigns are providing the best ROI. You’ll also be able to easily tweak your ads all at once to quickly optimize performance for highest conversion rates.
Reach and segmentation are both important elements of a successful ad campaign, and by using retargeting as a strategic part of your ad performance, you’ll be able to use data-driven programmatic advertising to build strong relationships with a large audience. You’ll be able to reach them with the content that matters to them, and help guide them down your conversion funnel so that when they’re ready to make a purchase, you’ll be able to connect with them wherever they are online.
Find out more about how to manage your ads in our new ebook.