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Pay attention to Remarketing: 8 Facts to Make You Rethink Your Pay Per Click Strategy

Posted on: October 2nd, 2015

1. Remarketing Conversion Rates Increase Over Time

Remarketing naysayers preach being very conservative with impression frequency caps and membership duration to avoid offending potential customers.
We’ve found that conversion rates actually increase the more users see an ad within remarketing campaigns. It’s true that click-through rates decline over time, but those people who do click on your ad, after having seen it a few times already, become twice as likely to convert.

Remarketing Conversion Rates Increase Over Time

 

2. The Whole Remarketing “Creep Factor” is Ridiculously Overblown

If your customer prospects are so creeped out by your ads, you would expect them to ignore them, right? Well if they’re so mad at your dumb ads, they certainly won’t bother clicking on them. It follows that a very easy way to determine if this assertion is true or false is to calculate ad fatigue.

Ad fatigue refers to the notion that the more times you see an ad, the less likely you are to click on it, because people tire of seeing the same thing over and over again. If users are mad or annoyed at your ads, they should fatigue at a faster rate.

The Whole Remarketing “Creep Factor” is Ridiculously Overblown

3. Facebook and Google Display Network Offer the Best Reach

Google Display Network reaches 90% of Internet users worldwide, 65% of whom they reach every single day. More than a trillion impressions are served to over 1 billion users every month (source: Google). Meanwhile, Facebook has more than 1.4 billion users, over a billion of whom logged in yesterday (source: Facebook).

4. Remarketing Is Incredibly Powerful for Brand Building

It’s very hard to build a brand using tiny text ads and organic search listings, which have a very limited amount of character space and don’t support logos and all the other visual elements that marketers typically use to build a brand.

Display remarketing is a fantastic way to build your brand because there’s so much more creative magic you can infuse into an image ad that will make your customers love and remember you.

5. Quality Score Exists on Both Google Display Network and Facebook

Trying to make your remarketing ads unattractive to discourage people from clicking in order to get “free impressions” is a Quality Score killer, which means you’ll get less impressions and pay more for the clicks you do get.

On the Google Display Network, every 0.1% increase in CTR yields a 20% decrease in CPC! The same is true in reverse – decreases in CTR = increased CPC, which sucks.
On Facebook, Quality Score (or “Relevance Score” as they call it) is even more important! A 1% increase in Post Engagement (people liking, commenting, or clicking on your promoted posts) results in an average 5% reduction in cost per engagement:

Quality Score Exists on Both GDN and Facebook

6. Search Ads Convert the Highest But Display Ads Aren’t Far Behind

Search ads have the highest conversion rates due to the high commercial intent inherent in someone executing a keyword search. A few years ago, display ads were nothing to write home about. But today, thanks to remarketing and other advances in display and social ad targeting, they convert almost as good as search ads, and even better than search ads, in some industries. Here’s some data from a few hundred WordStream customers.

Remarketing converts so well because past browsing history is an incredibly powerful predictive signal for future commerce activities. You’re often targeting the same people who were searching for stuff on Google – just targeting them at a slightly later time.

Search Ads Convert the Highest But Display Ads Aren’t Far Behind

7. Remarketing Clicks Are Ridiculously Cheap

Search ads in super-competitive industries can cost several dollars or more per click – and that’s just the average (with some keywords costing more like $50 per click). Display and social remarketing ad clicks by contrast might cost anywhere from 2-100x less.

Remarketing Clicks Are Ridiculously Cheap

8. Remarketing Isn’t Limited to Display and Social

We’ve talked a lot about remarketing in display and social, but they aren’t the only game in town. RLSA (remarketing lists for search ads) combines the intent of the search query with user context like location, device and time searched, but then it layers on browsing history, which makes for a super powerful combination.

Remarketing Isn’t Limited to Display and Social

 

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