Learn how to get the most out of your retargeting campaign and boost conversion rates.

1. NEWRetargetingStrategies
for2014
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Contents
Introduction
Retargeting–ABriefHistory
Segmentation:BestPractices
RetargetingandReal-TimeBidding(RTB)
RetargetingthroughAdExchanges
CreativeOptimizationCreativeOptimization
RetargetingonFacebook
What’snext?
10TipsforHighlySuccessfulRetargetingCampaigns

3. Introduction
Therewasatime,nottoolongago,whenanabandonedcartmoreorless
guaranteedthatyouhavelostasale.Apersonvisitedyourwebsite,madethe
efforttoaddsomeitemstotheonlinecart,andyetforsomereasondidn’t
completethetransaction.Therecouldbeanynumberofreasonsbehindthis,
butthebottom-lineisthatyoulostapotentialcustomer.
RetaRetargetinghasleveledtheplayingfieldforonlineretailersandecommerce
websites.Now,evenifapotentialcustomerislost,youcanuseretargeting
techniquestogethim/herbacktoyourwebsite.Ifyouarelucky,thelostsale
wouldthenbecompleted.Retargetingisnow widelyusedasameansof
trackingandconvincingpeoplewhovisitedyourwebsiteintherecentpastto
visitagain.
WHATTHENUMBERSSAY Percentliftinnumberofpeoplewhosearchedfora
marketer’sbrandwithinfourweeksofadexposureintheU.S
Source:Adage
Retargeting Audience Premium
+1,046%
+514%
+300%
+130% +126% +100%
Contextual RON Efficiency

4. mytennissite.com
98%Leave
VisitorsLeaveVisitorsEnter
Lost
Visitors
Return
ThisshorteBookisintendedasaguidetohelpyoulearnaboutthemost
effectiveretargetingstrategiesin2014.Wewillgooveranumberofstrategies
and providetipsyou can follow to createacomprehensiveretargeting
strategy.Allyouneedtodoisreadtilltheend!

5. Retargeting–ABriefHistory
Overtime,retargetinghasevolvedrapidly.Infact,youmightfindithardto
believethatretargetingasweknowittodaydidn’texistuntilafewyearsback.
Modernonlineretargetingonlycametotheforeabout7yearsback.Youmight
knowthatitwasthetimewhenonlineshoppingbeganshowingstellargrowth
inpopularity.Sincethenumberofpeoplemakingpurchasesonlinewasonthe
rise,itwasonlynaturalthatmarketersbegantopursuetheirtargetaudience
onlineaswell.Thisledtoamorepersonalizedform ofretargeting.
Insteadoftargetingtheiradsandothermaterialatabroadgroup
of people,a more personalized method of retargeting was
developed.Thismeantthatmarketerscouldnow focusonthe
customerasanindividualratherthanhavingtotargetawhole
demographic.
2010
2011
2012
2013
2014

6. Obviously,thereisnothingwrongwith goingbroad butretargetingan
individualoffersabetterchanceofasale.
Initially,theadsusedforretargetinglostcustomerswerequiteplainindesign
andappearance.Asingleadwouldbecreatedandthenusedoverthewebas
marketerstriedtotracktheircustomers.Backinthosedays,thetoolsavailable
tomarketersnowweren’tpresent.So,therewasnochoicebutformarketers
tocontinuouslyupdatethemeansofretargeting.
TimesTimeshavechangedandhow.Today,itispossibleforanadtobecreatedand
displayedinrealtimehardlyafewsecondsafteravisitorhasclickedaway
from yourwebsite.
Tosaythatretargetingisperfectwouldbestretchingthetruth.
Tosayitwouldandshouldcontinueevolvingisright.
Segmentation:BestPractices
Movingontothebusinessendofthings,let’sstartthingsoffwithperhapsthe
mostimportantofallretargetingstrategies.Whenretargeting,youcannot
pursueeachandeveryvisitorwhoclicksawayfrom yourwebsiteindividually.
Thatwouldtakealotoftimeandeffortandyouwouldhavetoconstantly
monitoryourwebsite.

7. Thisiswheresegmentationcaneaseyourburden.Throughsegmentation,you
candivideyourtargetsintodifferentsegmentsandgroups.Regardlessofhow
yousegmentyourpotentialcustomers,youneedtogetitright.Herearesome
segmentationbestpracticesyoushouldfollow:
SegmentingbySalesCycle
Firstoff,youcansegmentyourusersbythepositiontheywereinonthe
salescycle.Forinstance,visitingyourwebsiteisthefirststepandcompleting
thepurchasethelast.Sincethepurchasewasn’tcompleted(elsewhywould
youberetargeting),youcanhavedifferentbanneradsforuserswhoonly
browsedyourwebpagesandthosewhoabandonedtheircarts.
SegmentingbyProductInterests
Youcansegmentusersbytheproductsorservicestheyshowedinterestin.
Thisiseasierifyouhavedifferentproductpagesforeachproductand
serviceyouoffer.Youcanalsogetcluesfromtheitemsthatvisitoraddedto
his/hershoppingcartbeforeabandoningit.Haveadstailor-madebasedon
theproducttheusershowedinterestin.
SegmentingthroughOptimization
Last,butnottheleast,youcanoptimizethesegmentsyouhavecreated
byaddingdifferentfilterstoit.Thisisknownascreativeoptimization.We
willcovercreativeoptimizationindetaillaterinthiseBook.
Thesearesomesegmentationbestpracticesyoushouldfollowforyour
retargetingstrategy.

8. RetargetingandReal-TimeBidding(RTB)
2013maywellhavebeentheyearwhenreal-timebidding(RTB)startedbeing
usedonawidebasis.Asthenameshows,real-timebiddingenablesmarketers
tobidonanimpressioninreal-time.ThegreatthingaboutRTBisthatthebid
ismadeandapprovedmeresecondsbeforethevisitorsreachesthewebsite
anditloadsup.
Thebidismadeforthedisplayspaceupforgrabsonthatwebsite.Thatbeing
said,RTBmaywellbethetrickiestofallmeansofretargetingtoexecute.The
windowavailableinwhichyouhavetomakethebidisextremelyshort.You
hardlyhaveafewsecondstomakethebid.Anditisunlikelythatyouaregoing
tobetheonlyonemakingthebid.
Top10AdvertisingSectorsbyRTBMarketShare
Source:Marketingcharts
Q12013
Q22013
RetailTelecom Auto FinancialTravel
100
100
87
53
53
51
40
46
38
37
23
26
15
10
14
17
13
13
Food
&Drink
Health BusinessMedia
100-
0-
10-
20-
30-
40-
50-
60-
70-
80-
90-

9. ThereisacomplexprocessgoingonbehindthescenesthatmakesRTB
possible.Itwon’tbewrongtosaythatitisamazingthattheprocesscanbe
completedinamatterofseconds.Hereisanoverviewoftheprocess:
Auserlandsona
webpageandtriggers
theadunitsinto
action.
Whilethewebsite
loads,themarketers
bidforthedisplay
spaceonit.The
marketerwiththe
highestbidwinsthe
impression.
Auserlandsona
webpageandtriggers
theadunitsinto
action.
Thehostserver
notifiesthevarious
adexchangesthatan
interestedvisitoris
onthewebsite.
Theexchangetracks
theuser’sbrowser
cookiestodetermine
whetherornot
he/sheisworth
retargeting.
Themarketerwhowinsthebidcanthenpursuetheleadandconvincehim/her
torevisitthewebsitewhichhe/shehadvisitedbefore.Theideaisthatgettingthat
persontovisitthatwebsiteagainwouldleadtoasalethistimearound.Evenif
youloseoutononeimpression,youcanstillbidontheotherdisplayspace
availableonthatparticularwebpage.Anauctionisconductedforeachone.

10. TheuniqueaspectofRTBisthatitisnotagambleperse.Oftenmarketers
purchaseadspaceinthe‘hope’thatitwouldleadtoanincreaseinsales.When
itcomestoRTB,theycanpickandchoosewhenandwheretodisplaytheirads.
Thismeansthattheriskisminimal.Moreover,withexperience,theycanget
moresalesinalimitednumberofimpressions.
OverOvertime,thecostperimpressionwoulddecreasetoalevelwhereeachlead
ishighlyprofitableforthebusiness.So,thereisnodoubtthatRTBshouldbea
partofyourretargetingstrategyin2014ifyouaretomaximizethenumberof
customersforyourbusiness.
RetargetingthroughAdExchanges
RRTBwouldnotbepossibleforyouifyoudon’tuse
adexchanges.Inmanywaysadexchangesarelike
auctionhouses.Theyhaveonlineadspacetosell
sotheyadvertiseit.Thisattractsinterestedparties.
Then,anauctionisheldwheretheyinvitebids
from theparties.Theonewhobidsthehighest
getstotakethatspacetoretargetcustomers.
TheThe firstthing you need to know aboutad
exchangesisthattheinventorytheyhaveonhand
isalwaysgreaterthanthedemand.Yet,theyhold
auctionsinordertogetthebestprices.So,this
meansthatifyouarebeingmadetobidanamount
beyondyourceiling,thereispointindoingso.You
arebetterofflookingforotheradspaceelsewhere
thatsuitsyourbudget.thatsuitsyourbudget.

11. CreativeOptimization
UpUptillnow,wehavegoneoverthe‘broad’retargetingstrategies.Eventhough
youmaybepursuinganindividualcustomer,therearenofiltersinplace.This
iswherecreativeoptimizationcomesin.Let’ssayyourwebsiteattracts1000
visitorsonadailybasis.Itisquitepossiblethateachpersonhasdifferent
interestsandtastes.Theonlythingcommonamongthem isthattheyhave
visitedyourwebsite.
YYouhavetomakeuseofsegmentationtocreativelyoptimizeyourretargeting
efforts.Throughsegmentation,youcanpinpointexactlywhatapersonis
interestedin.Extrafiltersarethenputintoplacetofurthernarrowdownthe
results.Thisway,youwillhaveaccurateandreliableinformationabout
whatapersonlikes.
Asyoucantailoryourdisplayadstosuitthe
preferencesoftheindividuallead,itisquite
possiblethatthesuccessratewouldbehigher.
Thisdoesn’tatallmeanyou
havetotailoreachandevery
banneradyoupublish.That
wouldmeanatonofworkand
youwouldhavetospendalot
ofmoneyoneachad.Rather,
mostoftheleadsyouretarget
canbepursuedusingthecanbepursuedusingthe
genericadsyouuse.

12. Itisonlyinthecaseoftheuserswheretheirinterestsaredisparatetoyour
idealcustomerthatyouwillneedtoupdatethebannerads.Ifyoufeelyour
onlinedisplayadvertisingcampaignisnotdeliveringtheresultsyouare
lookingfor,creativeoptimizationcanmakeallthedifference.
RetargetingonFacebook
RetaRetargetingon Facebookmaywellbeyourbestbetwhen itcomesto
retargetingleadsin2014.Overtheyears,Facebookhasprovenitselftobe
highlyusefulandbeneficialformarketers.Facebooktookadretargetingtoa
wholenew levelbyintroducingtheFacebookExchange(FBX)justover18
monthsback.ThroughtheFBX,marketerscanpurchaseadspaceintheright
sidebaroftheFacebookNewsfeedoftheusers.
Retargetingimpressionsamongonlinedisplayand
Facebookexchangeadsworldwide,H22012(%ofshare)
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
Facebook Non-Facebook
63% 37%
47% 53%
27% 73%
13%
3% 97%
100%
87%

13. Atthesametime,thisalsomeansthatthecompetitionishighonFacebook.
NearlyeverymarketerwantstouseFacebookforretargeting.Thisiswhyitis
crucialthatyoumasterFacebookretargeting.First,let’slookathowitworks:
Facebookretargetingworksin
muchthesamewayasretargeting
onGoogledoes.TheFBXhas
madeitpossibleformarketersto
trackcustomerswhentheyclick
ontheads.
Youcanfollowtheusers
aroundtheinternet,trackingtheir
browsingactivity,todetermine
whetherornottheywouldbe
interestedinbuyingwhatyou
havetooffer.
Onceavisitorgetson
Facebookafterclickingaway
from yourwebsite,youradswill
beshowntohim/herintheright
sidebarorontheNewsfeed.This
way,youcanreiterateyour
messagetothatperson.
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14. Intermsofcostperimpression(CPM)andcostperlead,Facebookhasproven
itselftobefarsuperior.Thechartbelowshowsdatafrom thesecondhalfof
2012.Evenin2013,theCPM forFacebookwasover75% lowerthanthatof
otherretargetingplatforms.TheCPCandothercostswerealsoconsiderably
lower.TheonlyareawhereFacebooklagsbehindiscostperuniqueleadand
CTR.
Closeto13%oftheworld’spopulationusesFacebookonadailybasis.
Itistheplacewhereyouwillfindmostofyourtargetaudience.
(amongadvertisersrunningbothcampaigns,%toFBXrelativetostandardcampaign)
FacebookExchangevs.StandardWebRetargeting
CampaigninH22012
Source:Marketingcharts
CPM CPC CTR Cost/Unique
-82% -70%
-40%
86%
0

15. What’snext?
So,havinggoneovertheretargetingtechniquesthathavebeenaround
forawhile,whatdoesthefutureholdformarketerswhowanttodabble
in retargeting? The answerto this is Twitter.Only recently the
second-favoritesocialnetworkoftheworldhasprovidedtheplatform
formarketerstoretargetandpursuelostcustomers.
ItcanbesaidthatTwitterhasbeenlatecomingtothepartybutthat
doesn’ttakeawayfromthefactthatitoffersyouhundredsofmillionsof
targetstopursue.So,whatdoyouneedtoknow aboutTwitter
retargeting?Hereareafew thingsyouwoulddowelltokeepin
mind:
Theprocessofretargetingremainsthesame.Youtrackapersonwhohas
beenonyourwebsiteandthenleftwithoutperformingthedesired
action.Youhavetolocatehim/heronTwitter.
OnTwitter,youcantargetthatuserthroughPromotedTweets.Theseare
similartodisplayads.Sincethatpersonjustleftyourwebsite,itgivesyou
thechancetoreinforceyourbrandmessagetohim/her.Thereisagood
chancehe/shewouldfollowthetweetandgobacktoyourwebsite.

16. Source:Flicker
Asyoucansee,Twitteroffersaprettybasicformofretargetingformarketers.
ItwilltakesometimetocomeuptothelevelofFacebook.Thatbeingsaid,you
shouldkeepinmindthefactthatFacebookhasafull-fledgedAdExchange
whichTwitterdoesn’tatthemoment.
ThereThereisagenuineconcernamongTwitterusersandalsomarketersthatusing
emailaddressestofindusersconstitutesabreachofprivacy.However,Twitter
hasclearedtheairbyannouncingthatemailaddresseswouldbescrambledin
thefuture.Thiswould ensurethattheiruserscan remain anonymous.
Marketerswouldhavetobeshrewdertopursuethem onTwitter.

17. 10TipsforHighlySuccessful
RetargetingCampaigns
Beforeyoucreateandimplementaretargetingstrategy,itis
importantyouunderstandhowretargetingworks.So,takethe
timetolearnaboutretargetingandeachtechniqueyoucanuse.
Segmentyouraudience.Rememberwhichaudiencestoinclude
andwhichtoexcludeineachretargetingcampaign.
Continue
Addaclearcalltoactiontoeachandeverydisplayadyou
publish.Gettingstraighttothepointisimportantwhen
retargetingcustomers.
Yourretargetingadsshoulddirectuserstoalandingpagewhere
theycanperform thedesiredaction,nottoyourmainwebsite.
Constantcreativeoptimizationisextremelycrucial.Keeptesting
youradstomaximizeperformance.
ToconcludethiseBook,hereare10tipsforhighly
successfulretargetingcampaigns:

18. 10TipsforHighlySuccessful
RetargetingCampaigns
Combineafewretargetingchannels.Utilizingwebwith
Facebookretargetingwilldeliverthebestresults.
Don’tannoycustomers.Retargetingdoesn’tmeanyouhaveto
stalkthem,sokeepthefrequencycappingdown.
Keepitrelevant.Makesureyouradsarerelevanttoyourniche.
Sticktoonevendorforpurchasinginventory.Thisisimportant
tokeepperformanceincheck.
Placetrackingandconversionpixelsonthesales/landingpages.
Don’twastetimeandresourcespursuingpeoplewhohave
alreadymadeapurchase.
Thesearethe10goldenrulesofhighlysuccessfulretargetingcampaigns.
Keeptheseinmindtoensurethatyour2014retargetingeffortsdeliver
resultsbeyondyourexpectations.

19. Sales@dispop.com |1-800-903-1882