Why Should You Use Retargeting Advertising and Avoid AdWords?
If you were to start a traditional online advertising campaign today, it would require a huge set of additional skills that you probably don’t have. You probably don’t have time to learn how to: perform keyword research, building keyword lists, create highly tailored ads, implementing conversion tracking, or effectively tracking CPM or CPC costs. As a small business owner you have outsource tasks that are not your core competency. You are most likely outsource one or all of this skill sets: accounting, design, programming, marketing, system administration, and legal. If your business gets big enough you hire employees with those skills but you certainly don’t try to do everything yourself.
I operated an online business for 4 years which relied solely on Google AdWords to acquire new customers. We sold one product for $29, so we had to keep the per conversion costs under $20 to make any money. Google Adwords ads are what you see in Google’s search results. Based on my first hand experience, I can attest that successful Adwords campaigns requires spending a ton of time tweaking everything from lists of keywords, creating audience specific ads, and babysitting existing ads to make sure we didn’t lose money. I created dozens of ads that were just minor variations so I could test which ads worked and which to trash. It took years for me to get good at creating highly tailored keyword lists and ads that reduced our conversion costs. By the time we sold that business we spent about $14.50 on average to acquire customers with Ads. We sold that business so we focus on Happy Herbivore.
Our Ads were very similar to what’s above. Most AdWords ads are keyword heavy and are meant only to get the user to click on the ad. These ads only communicate the broad idea of what’s on the other side of the Ads link. These ads are very similar to what you would see in a newspaper classifieds or in the back of magazines.
I didn’t track my effort but I’ve estimated how many hours I worked believe we made $150 for every hour I worked. When you start with you first retargeting campaign define what winning is for you. If you decide to pull ads and favor other tactics, don’t sweat it. You just need to make sure the money you are paying for ads and clicks eventually turns into real money. Happy Herbivore is basically an untraditional e-commerce company. We need focus on a directly positive result, where we make more than it costs to get that conversion.
Christmas Cards for Everyone
You own a store in a small town with a population of 50,000. You are faced with a decision. You can either spend $10,000 to send everyone in the town a Christmas Card. Your alternative is to only send cards to people that come into your store in the past year. Wouldn’t you want to target people that have been to your store? Wouldn’t those people be much more like to be interest in what you sell? If you chose the small targeted group, then you can afford to send a series of 4 separate post cards leading up to the holiday telling about special items and include your famous family sweaters Christmas card. This is the essence of retargeting: sweaters. No. No. No. It’s about bringing potential customer back so you can sell them jackets for their pet goat. Did you see she has a goat on her lap?
A visitor to your website much more likely to be interested in your products then some random person on the internet. Why didn’t they convert the first time on your site? Maybe they got distracted, they didn’t have credit card at that moment, something else called them away, they need time to think about it, they don’t get paid until Friday, or maybe they wanted to compare prices. Those are the people you are going to retarget. Don’t miss out on bringing those customers back.
One of the best advantages of Retargeting is that doesn’t required hours of your focus every week. Retargeting is much easier setup and more focused because you only show Ads to people that have been to your website.
Once a customer has made a purchase you can configure your retargeting software to stop showing them ads. Retargeting also lets you reach customers across multiple channels Facebook, Twitter, and Banner ads on websites. Facebook is currently one of the most cost effective mediums for using retargeting to generate sales.
There are certainly many other strategies that you could employ to grow your business. I do however think that retargeting is one of the most efficient ways to grow your business. Keep reading and I’ll show you how to bring back those lost soles.
Author: Scott Nixon