The Importance of Remarketing for Businesses?

The Importance of Remarketing for Businesses?

While new generation consumers use the technologies they have very well, they also want to determine the conditions they want. In the face of such conscious consumers, "marketing" processes have to constantly improve themselves, of course. In this cycle, businesses need to improve their networks every day in order to ensure their continuity, ensure the optimum distribution of their campaigns in digital environments in order to catch up with developing and changing consumer trends, and try to manage their marketing budgets in a balanced way.


Digital marketing is designed for a shorter period of time than traditional marketing. Therefore, businesses have the problem of creating the right performance metrics in hundreds of advertising models. At this point, Remarketing offers a very quick solution to this problem.


What is Remarketing?


Remarketing is one of the digital marketing strategies and is used to engage with potential customers and direct them back to your site, products or services. Remarketing is usually a method where users are tracked after they visit a website and then customized ads are served to those users.


The purpose of this advertising model is to create a data pool. This pool of data can be filtered and used in similar advertising strategies in the future, aiming to increase product/service sales through this method.


Remarketing can be used to send reminder messages about products or content that users are interested in. For example, if a user has viewed a particular product on an e-commerce site but has not purchased it, it is possible to show ads related to that product to that user. This way, the user remembers the product again and can be directed to make a purchase.


Remarketing is usually carried out through cookies or other tracking technologies. These technologies collect information when users visit your website and then use this information to serve customized ads to users. Remarketing can be an effective strategy to increase conversion rates and boost sales because it is used to maintain the interest of potential customers and drive them back to your site.


By optimizing ad performance and providing quick access to the target audience, remarketing ensures that the company's ads are seen more than once by the visitor and as a result, the visitor is directed towards the purchase.


A Simple Example!


If we explain this with an example, it will be much clearer. In this example, we will detail how to optimize the "Google Search Network" and the "Google Display Network".


Let's say you have a product and we want to announce this product to an audience of 10 million people. Let's imagine that we are developing a GDN (Display Network) advertising strategy on Google. Let's plan that our display ad will be shown to an audience of 10,000,000 people and 100,000 people of interest will visit our website. Google display models are generally 10 times more affordable than Google search. The average cost per click is around 0.10 - 0.20 cents. To reach an audience of 100,000 people, you need to pay 10,000 TL to the GDN network. Let's apply this scenario in the search network.


Providing 100,000 website access by providing exposure to an audience of 10,000,000 people on the Google search network is technically considered a failure. If you need to dominate a certain market, your click-through rate per view should be 10%. For our example to give the right result, we have to keep our audience large. Let's provide 1,000,000 website visits by providing impressions to an audience of 10,000,000 people. If an average of 10% of this visit is considered as a target consumer, we will direct 100,000 final consumers to our site. Search network per-click fees start from 0.50 cents and go up to 20 TL according to the target word. We can think of the search network per click fee as 0.7 cents on average. Based on this data, we need to pay 700,000 TL to get traffic from an audience of 1,000,000 people.


In one ad model, we reach 1 million people for 10,000 TL; in the other ad model, we reach 1 million people for 700,000 TL. The total cost of the two advertising models to your business is 710,000 TL. So what exactly is the benefit of Remarketing here?


We published our product A with the GDN ad network for 10.000 TL and got 1 million visits. With the Remarketing method, we now know that we can show them our ads while they are browsing different sites thanks to a small cookie we leave on their computers.


We are also creating a search ad for the GDN ad campaign we created. This time, without leaving our audience general, we use the remarketing audience created in the GDN ad and show it to the 1 million people who were previously won. Among this audience, 100,000 people who tend to buy visit our website and we spend 70,000 TL for this.


The audience of 100,000 people who are inclined to buy is now a prospective customer and we can access this audience for 80,000 TL using the remarketing method.


As we mentioned in the example above, it is very important for businesses that want to be sustainable in digital areas to advertise with the right strategic models. While we reach the same consumer audience for 710,000 TL in the first scenario, we reach them with 80,000 TL in the other scenario. There is an 8.5-fold difference in ROI (Return on Investment) between the two scenarios.


Note: The per-click fees given in the advertising models are calculated by taking average figures. Figures vary according to the sector, product and area of interest.