The costs of advertising are rapidly increasing, even as you read this. As an advertiser (either a merchant, marketer, or agency), it is imperative that you keep the cost of your retargeting and regular campaigns low and your return on investment high.
According to Wordstream, here are the benchmarks for the average CTR (click through rate) and CPC (cost per click) sorted by industry.
The average CTR across industries is 0.90% and the average CPC in Facebook ads across all industries is $1.72. The graphs also show CTR and CPC by industry, such as apparel, beauty, education, fitness and healthcare.
These are the averages and these averages might not mean anything to you if you don’t get your Facebook advertising and campaign management right in the first place.
To optimize your ads and get close to those averages, you’d need to set up your campaigns properly — with the right kind of Facebook campaign setup, a strong offer, matching landing pages, smooth sales funnels, and marketing automation for following up with your leads.
We’ll be honest with you: Most businesses don’t get it right. They make blunders while launching Facebook campaigns. As if to rub salt on the wounds, many freelancers and even full-time agencies don’t launch Facebook campaigns the right way.
Regardless, it’s proven that you’d do better if you started with remarketing campaigns instead of launching regular ad campaigns first.
Note: You’ll need to set up audiences (such as an audience of all your website visitors or lookalike audiences of your existing customers or email subscribers) before you launch remarketing campaigns.
Here are the top reasons why you should start with retargeting campaigns first:
Retargeting ads just make sense
Since about 80% of your visitors don’t take any action when they visit your website and/or landing pages, retargeting is a natural and progressive way to get your visitors back. Retargeting ads are highly-targeted, relevant, and timely.
Because your retargeting ads only reach out to people who’ve already visited your website and/or landing page, you are basically targeting a warm audience (as against a completely cold audience) leading to better results.
By the time your retargeting ads reach out to the audience that is already aware of your brand, products, and services, your audience is primed up to take action. They are more likely to respond to your campaigns than cold audiences do.
Retargeting is considerably cheaper
The cost of regular digital advertising for a few industries can go up to $50 a click or more (depending on the geographic location and the industry).
As such, with those insane rates per click, it becomes harder for a few businesses to run profitable ad campaigns. That’s when retargeting really shows what it’s really worth.
Apart from the fact that retargeting helps with brand lift, brand recall, increase in traffic, and an increase in overall time spent on your website. It’s also considerably cheaper than running regular campaigns.
Google’s Data reveals that if you used Google’s Display Network for retargeting, you’d be able to achieve CPA (Cost per Acquisition) 2% less than the typical CPA on the search network.
Claire Pelletreau, for instance, managed to make $1.60 for every $1 spent, thanks to retargeting on Facebook.
Do you really need more convincing than this?
Retargeting gets you higher conversions
According to an infographic from the folks at Invespcro, website visitors who are retargeted with relevant and timely campaigns are 70% more likely to convert than others.
Larry Kim of Wordstream launched remarketing campaigns that helped increase repeat visitors by 50%, boost conversion by 51%, and increased the overall time spent on site by an insane 300%.
According to Neil Patel, you could boost your conversions to up to 128% or even more.
Retargeting campaigns are inherently brand-aware, instantly recognizable (because your visitors still remember you), and are highly relevant.
Retargeting helps convert abandoners
Shopping cart abandonment, page abandonment, offer abandonment — regardless of what you are trying to achieve, the “abandonment” part of the equation is literally bleeding every single business out there.
More than 96% of the people visiting a website leave without taking any action on the site that’s actually beneficial for the business. A whopping 70% of the people abandon their shopping carts (without ever buying anything).
While those are the overall stats of Shopping Cart Abandonment, the reality is that at least 80% to 90% of all business do not do anything to get those abandoners to come back and complete their transactions (or actions that benefit businesses in some way or the other).
Retargeting helps you complete the loop by specifically targeting people who view specific product pages, service pages, pricing pages, or actually add items to their shopping carts but don’t complete their purchases.
Agreed that you have to get a lot of things right to make them work — such as targeting, ads, copy, your offers, retargeting specific sales funnels (or eliminate them altogether?). But retargeting, if you do it well enough, could be the game changer for your business.
Interested in putting the power of retargeting to work for your business. Fill out this form and allow our team to get in touch with you to discuss your needs now.