Re-messaging (sometimes called retargeting) must be one of the best kept secrets of online advertising. Yes, many brands are doing it, but many more are not - and these brands are missing a major opportunity to reach historical site visitors and re-engage with them to increase sales.
What is re-Messaging?
Re-messaging enables an advertiser to re-serve online display advertising to people who have visited their website and left without purchasing or engaging in-depth (becoming a lead, registering for newsletters etc). So, imagine that you are an ecommerce retailer selling shoes. If you get a 2.5% conversion rate to sales, that means that 97.5% of your online visitors leave your site without purchasing. That’s a lot of potential customers, potentially lost forever. Well, it doesn’t have to be like that. Re-Messaging can help you bring these lost sales opportunities back into your business.
In order to run a re-messaging campaign you generally need to be working with an online advertising network. These networks gather together publishers of larger sites and do deals to sell their unsold advertising space. Nothing special there then. I agree. But here comes the interesting bit. These networks employ tracking technologoes which can detect people have been to your site and subsequently visited sites within their advertising network. It is when your past visitors visit these sites in a participating ad network that you are able to re-serve your online advertising to your past site visitors. This means you can track, follow and re-engage with people who have visited your site, but left without making a purchase.
There’s a huge creative opportunity here too. It is possible to re-message visitors who have been to specific pages within your site. Knowing which pages have been visited means you can serve custom display ads to people who have visited key pages within your site. So for example, we can identify all visitors who have been to the “Basket Completed” page, but not gone to the “Buy Now” page. These users can be served a sales reminder message such as “New Range of UGGs now in stock” or “Buy UGGS now and enjoy 5% discount until March 31st”. In this way you are able to re-incentivise past visitors who are interested in your products, but did not convert to purchase.
What kind of results can you expect from re-messaging?
In our experience click through rates in re-messaging are around five times higher than in normal online display. Conversion rates are also significantly higher because you are communicating with visitors who have already shown an interest in your site. It’s also worth mentioning that a conversion doesn’t need to be a sale; you can use re-messaging to build your database which can then form the basis of a CRM campaign. Either way, re-messaging is an extremely effective way to identify and re-connect with past visitors to your site.
Google acknowledges the power of television advertising with Superbowl spot
So why did they do it? Television does amazing things for brands. It builds stature, it builds status, it builds employee confidence, it rocks competitors and it drives lots of traffic. More than that, TV advertising embeds brands into popular culture. It’s powerful stuff. However, Google is already part of popular culture so why advertise on TV? My guess is they’re interested in seeing how TV ratings can be correlated to web traffic. I could have saved them around $1m here. TV ads drive web traffic at a rate of between 0.015% and 0.25%. So with an audience of around 100m viewers, Google could have expected traffic uplifts in the US of between 15,000 and 250,000 within a few hours of transmission. What value is this to Google? When Google searchers clicks on AdWords it generates income for Google. Assume 50% of that 250,000 clicked into AdWords at a cost per click of $2, then there you have it; £250,000 of revenue. Not enough to cover the cost of the spot. But Google shouldn’t be disheartened by this - these figures are based on buying a spot with inherently high premiums. Outside the Superbowl, the economics might look considerably better.
And for Google’s fan base (of which I am one). They are right, Google AdWords is a very powerful business generator. It collects response at the end of the sales funnel - just as the Yellow Pages did for so many years. But something has to populate that sales funnel and drive search volumes. Something has to make each brand credible; make it top of mind, the safe choice; the right choice. That’s where TV comes in.Even though things look good for Google in search at the moment, I suspect there may be changes ahead - demand for AdWords is forcing up click costs at Google and this may drive search marketing budgets to competitors like Microsoft’s Bing. As Google loses traffic it will look to fight back and it has to do that by holding and winning back search traffic - the source of its revenue. There may well be a ferocious marketing battle to be fought amongst search providers, with Google standing to lose the most. Testing TV now, may indeed be a dress rehearsal for future TV advertising activity.
It’s interesting to note that predictions of the end of mass marketing tend to come primarily from within the non-TV marketing community. The reason for this is that those who have not been at the “business end” of TV advertising are unlikely to have made careful study of the effects of mass marketing versus the costs of undertaking it. Mass marketing can still be very powerful and it can be very cost effective. The temptation is to assume that because it costs so much, it couldn’t possibly work is erroneous. Perhaps with Google’s use of TV advertising, some of mass marketing’s critics may take time to reconsider. Google has.