Keyword Targeted Campaigns versus Remarketing: Are you comparing apples and eggnog?
There has been a clear push throughout the Internet marketing industry to jump on the online advertising wagon. If integrated properly, adding a pay per click advertising campaign to your marketing mix can be extremely beneficial. One of my responsibilities when designing and managing pay per click advertising campaigns is to organize campaign data into meaningful metrics, communicate what these metrics mean and create a strategy based on what they unveil. The trick to any successful marketing campaign is determining how to best use the tools you have available to reach an audience that is likely to convert. This is true online and offline.
Google offers several features to customize a pay per click advertising campaign. When using Google AdWords, users have the option to show ads on Google’s search and display networks. These ads are populated based on different targeting settings, like keywords and placement options, that are assigned to a specific campaign. This “foot-in-the-door” strategy is a great way to generate new leads. Another popular advertising option offered by Google and many other platforms is remarketing. Remarketing targets individuals who have previously visited a business’s website. Advertisers who use this tool can retarget website visitors and leverage compelling ad copy to draw those same visitors back to purchase goods or services. Many pay per click advertising campaigns utilize ads triggered by keywords and ads populated via remarketing to attract new leads and bring back potential customers who have visited their site simultaneously.
Using a combination of pay per click tools to increase sales can be extremely beneficial. It is important to understand that even though the end goal is the same, popular metrics tracked in pay per click advertising for ads triggered by keywords do not perform the same as those populated from remarketing. Comparing these two apples to apples will not help you determine their success. When measuring the success of the two, focus on how they perform individually. With the rise of remarketing, throw out preconceived notions about performance metrics used when evaluating a campaign targeted by keywords. While these same metrics still have value when evaluating remarketing efforts, they are not always interpreted the same way.
Google Remarketing Performance
It is easy to over-analyze metrics provided in platforms like AdWords and Google Analytics because there are so many different ways to look at and filter that data. When evaluating your remarketing efforts, remember the purpose of this type of campaign. Your overall goal is to draw potential buyers back to your website. They are already aware of your brand and product. This should give you some insight into how they should behave if they click on your ad and land on your website.
Making Sense of Familiar Metrics
1. Conversion Rate - Conversion rate should be a major focus when looking into how this type of pay per click advertisement performs. A consistent and relatively high conversion rate is a sign that remarketing is a good choice for your business.
2. Bounce Rate - The bounce rate should be relatively low for remarketing because users who click on these ads are already aware of where they are going to land and what to expect. This metric is useful for testing landing pages and ad copy when creating remarketing advertisements.
3. Click-Through Rate – While click-through rate for remarketing is not a primary focus, do not eliminate this metric completely. Your click-through rate will be low in general, but it still holds value when understanding your remarketing list. This metric can help determine if a campaign has casted too wide of a net or if the remarketing list is specific enough to truly engage captive users.
4. Cost Per Click – One of the draws of remarketing is the low cost of clicks. In remarketing, ads are not competing for keywords and your cost per click will not reflect the high first page bid demands of competitive keywords.
5. Cost Per Conversion – The cost of a conversion that results from remarketing should seem economical based on expectations made about the conversion rate and cost per click. These three metric work together and can help determine if remarketing is the right option for a business.
When making sense of your remarketing efforts, focus on your cost per click and conversion rate. Use other metrics like click-through rate and bounce rate to help create your ads and evaluate your audience list. Remarketing is one of the many facets of pay per click advertising. While all of these facets are put in motion to generate profits, they do not always function the same way.
To learn more about Full Media and our pay per click management services, contact us today.