REMOVE THE VEIL: MODELING OF AUDIENCE IS NOT ONLY RETARGETING

DorisRon

Member
Anyone who in recent years is focused in his work on tools for remarketing, is constantly faced with approximately the following reaction of others "Oh, you do retargeting!" But in fact it is not retargeting. This is construction of audience segments.

After another discussion about retargeting as a form of audience-based advertising, we must open the hood, under which the engine of understanding boils, and provide some clarity on the evolution of the remarketing. Today we will talk about how the main tools of a simple and effective marketing channel allowed to realize the most innovative and effective marketing techniques available today.

A BIT OF HISTORY
Marketing based on e-mailing, is not a new concept. Direct mailing was considered one of the most effective marketing channels, used in recent decades, and its modern twin sister - e-mailing - is a workhorse that works on arable land of Internet marketing. So when someone got a brilliant idea to use cookies to generate user lists, to hold a successful advertising campaign on the Internet, the idea was simply doomed to success.

In a first embodiment, this type of marketing has been called "retargeting" (concepts of "remarketing" and "retargeting" are used interchangeably). And as marketers are constantly demanding innovations, core technology began to be used to segment the audience by different parameters: behavioral characteristics, search history, etc. In the end, we came to the modeling of common attributes to identify additional traffic opportunities, but not to trivially monetize existing volume of information transmitted through a computer network for a certain period of time.

REMARKETING VS. PROSPECTING
So, first let's deal with terms. Remarketing is the process when you show ads to people who visited your site before. And prospecting is displaying of advertising messages to those who had not been on your site.

Common types of remarketing:
1. Renouncement of shopping carts

2. Browsing of Shopping Pages

3. Multibrowsing of pages or the durable visits

4. Event (subscription for newsletters)

Common types of prospecting:
1. Targeting based on categories

2. Search Remarketing

3. Look-alike modeling

4. Affinity marketing

ART OF SEGMENTATION
On a logical level segmentation of the audience is a relatively simple task. Users with common intention and the same value are grouped together. In other words, you show ads to people who are united by common interests and have about the same probability of conversion.

Interest is determined by the actions you perform - for example, send a TV to your shopping cart to see how much this model costs.

The value of the potential client is determined using the projected conversion rate. Let's imagine that 1% of the users that add TV to the cart, are back and ultimately make a purchase within 30 days. A good marketer can easily calculate the value of a user visiting the site who has added a television to the cart of his purchases. To do this, the value of re-visits is multiplied with the cost of the ad, so you get the value of CPC of the remarketing model.

Leap of Faith
On the other hand, prospecting, the backbone of which is in monetization of publisher's data, is based entirely on though well tuned, but still assumptions. The further we move away from the usual user's behavior and begin to dig deeper, the less accurate our assumptions will be.

Look-alike modeling quickly became one of the most popular and effective methods of prospecting. Advertising networks enhance their own forms of potential customers tracking to create high-quality audience segments and identify the common characteristics of those users. After that, they start to search for those users who are not yet included in one or another segment of the audience, but who have similar characteristics (look-alike audience).

For example, Google offers its own unique method of prospecting through remarketing. Customers, who recently typed specific requests, are added to the audience segments and re-sold on Google Display Network. Thus it is possible to show ads to people who searched for the key concept, but did not click on a search result.

All of these targeting methods have their strengths and weaknesses. But no matter how you use them, there is always a certain risk of failure. If you're just trying to carry out prospecting of audience, start with a small budget and low interest rates and gradually increase them. If you are too aggressive, everything could quickly spiral out of control.

CONCLUSIONS
If you want to monetize existing traffic or increase it, you definitely need a set of tools for remarketing. On the market such great companies as AdRoll, TellApart and Criteo, offer many powerful solutions. But even the fact that you use the tools of the Titans does not guarantee that you maximize your remarketing potential.

We strongly recommend you to look into your data, to correct the relationships between the actions and events. The division of third-party data into levels or gain ща more sophisticated audience tracking techniques allows to implement some DSP and data aggregators, which offer endless possibilities for data monetization.
 
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