How AdWords Remarketing Can Increase Your ROI By 131%

AdwordsRemarketing

Are you taking full advantage of Google AdWords remarketing?

The most efficient way to allocate any kind of ad spend is to target people who are actively interested in your product or service. And guess what? Remarketing is a great way to do just that.

In this post, you’ll learn how using Google AdWords remarketing campaigns can increase your ROI.

What's Remarketing? (Retargeting)

Google defines remarketing as a way to “show ads to people who have visited your website or used your mobile app before.”

Pretty much everyone but Google calls it retargeting -- same thing, slightly different name.

How it works is, when someone visits your site or app, your ads will start to follow them around the Google Display Network by using a cookie or their user info. (By the way, the Google Display Network is a collection of millions of sites and apps that reaches over 90% of global Internet users: over 1 billion users per month.) 

In addition to display ads, can also use retargeting/remarketing to adjust the bids on your search campaigns, allowing you to bid more aggressively for searchers who already know your brand.

Okay, onto the results.

 

1.    Lower cost-per-click.

Comparing the performance of one of our clients’ remarketing display ads to their non-remarketing search ads across the past 90 days, we found the remarketing ads cost 38.07% less per click on average than regular search ads used to reach the same prospective customers.

Display Remarketing versus non-RM Search over the past 90 days.

PPC Hero conducted a similar case study and found that their average remarketing CPCs were 22% lower than search ads.

 

2.    Cheaper conversions through better targeting.

Whether you’re remarketing with Display or Search, by definition you are targeting a very specific pool of people -- much more specific than regular keyword, demographic, or other targeting provides. Because you are reaching customers who already came to your site, they are more primed to make a purchase.

This makes remarketing traffic convert really well. As part of the same case study above, we found that conversions from remarketing cost 56.53% less on average vs. regular search ads (and again, others have found similar results).

That translated into an ROI increase of over 130%!

Display Remarketing versus non-RM Search over the past 90 days.

Remarketing ads convert so well because a) people will recognize your brand, so they’re more likely to click; b) they have already shown interest in what you offer, so they’re more likely to buy; and c) it's a great way to get multiple ad impressions on individual users -- very important when the average user gets served over 1,700 banner ad impressions in a single month.

 

3.    Dynamic remarketing is massively scalable.

By plugging in their Merchant Center product feeds, ecommerce businesses are able to serve remarketing ads that show users the exact products they were just considering buying, regardless of how huge the product catalog might be.

These ads are dynamically generated, allowing for the automatic creation and serving of hundreds of thousands of different ads to different customers based on their behavior. And for the better part of a year, Google dynamic remarketing has also been available to non-ecommerce businesses as well.

 

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4.    Surgical targeting. 

Don’t just throw everyone who visited your site into a single ad group. Instead, split out different remarketing audiences for different types of visitors. Here are a few we like to use:

a.    People who didn’t convert or make a purchase.
b.    People who didn’t bounce (people who bounced don't always convert well).
c.    People who converted, but who can be sold additional products or services.
d.    People who visited a specific product or service page.

 

5.    Advertise a different angle. 

Since your remarketing audience has already seen who you are, your remarketing ads can focus on different selling points than your regular search and display ads do.

Instead of making your ad headline mirror the customer’s end goal, as you typically should for ads at the top of your marketing funnel, you can use remarketing ads to:

a.    Introduce secondary benefits.
b.    Address typical customer objections.
c.    Offer a discount of free add-on.
d.    Reinforce your brand identity.

By segmenting your remarketing audiences, the ad messaging you use can be based on the person’s behavior on your site. For example, someone who dropped out of the sales process when they saw your pricing might best be enticed with a lower-priced or free offering that allows you to build a relationship with them, while someone who signed up for your free trial last week might be best served with an ad promoting the benefits of the paid version.

 

6.    Strengthen your brand. 

By generating ad impressions, even for people who don’t click through immediately, you are strengthening your brand. If this is your goal, be sure to tweak your frequency capping settings to avoid showing your ads to individual people too many times each day, which can backfire by linking your brand with negative emotions.

 

Conclusion

Thanks to the factors above, Google AdWords remarketing can be one of the most powerful tools in your online advertising arsenal.

If you’re not already using it, you probably should be. And if you are using it, make sure you’re taking advantage of all six of the factors above.

Have you used remarketing, either via Google AdWords or another ad platform? If so, what results have you gotten?