Why Is Social Media Remarketing Crucial?
The typical number of touchpoints in e-commerce before a user converts is five to seven. Without remarketing, you are likely going to miss out on the majority of your campaign’s revenue potential. But, to be fact driven within Google Analytics, I will take a look at my client’s average path length. Path length is the average number of touch points it takes a user to convert. This information will be important to determine both the structure of your remarketing efforts as well as how much should be invested monetarily.
Additionally, I love analyzing the time lag report within Google Analytics. The time lag report shows you the breakdown of conversions that occur at the different number of days after the user’s first interaction. This information also helps for structuring your remarketing campaign. For example, if 90 percent of your conversions only occur within six days of the first interaction, then it could make sense to focus your retargeting efforts to this timeframe.
The Antiquated Approach
As a multi-channel media buyer for Hawke Media, I’ve encountered just about every type of retargeting campaign. But whenever retargeting campaigns are poorly executed, I see a trend. I typically see companies only targeting “all users” who have been to the site. With such a large retargeting pool, these firms are missing out on a slew of opportunities. Firstly, the ads will be following you around on the net for months, which we all know is usually both annoying and ineffective.
Secondly, if for instance, 90 percent of your conversions happen after five days of the first interaction, then the vast majority of your budget should be spent targeting users within that five-day window. Lastly, not only do these campaigns usually target one pool, there are rarely ever impression caps set. Without capping your impressions per users, you risk showing the same users the ads over and over again which are yet another wasted opportunity.
Rethink Your Remarketing
By using social media remarketing, you have many new and powerful tools at your disposal, many of which help shorten your sales funnel and lower your Cost Per Acquisition (CPA) or Cost Per Lead (CPL).
Let’s say you are a travel agency and your marketing mix primarily entails paid search and Facebook as your top of funnel source, and then you retarget on the Google Display Network as well as Facebook. We also know your average number of touchpoints to convert users is eight, and your CPL has been around $85. By looking at your top conversion paths, you see users typically convert by first seeing a search ad and then seeing about seven retargeting ads on Facebook.
In this situation, keep search and try removing Facebook new acquisition and instead invest your capital in retargeting with Facebook lead-form ads. With Facebook lead-form ads, the only real action your user can commit is to fill out your lead form. With this approach, there’s a good chance we would greatly shorten the path length and ultimately lower our CPL.