What is a Reasonable ROI to Expect From Retargeting Ads?
What is a Retargeting Ad?
Retargeting ads use data to reach customers who leave your website without converting. They’re highly effective because the potential leads they target are already engaged. Retargeting ads can help you reach your campaign goals by engaging potential customers with highly-relevant ad content.
How to Use Retargeting Ads
It’s best to utilize retargeting ads when you have a well-defined KPI (Key Performance Indicator). Cost per click (CPC), cost per acquisition (CPA), and click-through rate (CTR) are all measurable KPIs that are well-supported by retargeting campaigns. In each of these cases, there is specific user behavior that can be easily tracked in order to measure the success of the campaign.
E-commerce campaigns can also benefit from retargeting ads in cases where online sales are driven by promotional messaging. For instance, Basis DSP can help you reach customers who have abandoned a shopping cart, and might come back to complete the sale if offered a discount.
ROI by Campaign Goal
It can be difficult to determine a reasonable ROI for a retargeting campaign.
For retargeting ads running against a CTR goal, ROI can be expected at between .08% and .12%
For retargeting ads running against a CPA goal, ROI will vary depending on the desired conversion. To maximize ROI on CPA campaigns, it’s best to optimize the website so that the conversion activity requires as little as possible of the customer once they’ve arrived at your website after seeing the ad.
Finally, there is no blanket benchmark that can be universally expected for an e-commerce campaign where return on ad spend is the KPI, as spend levels and product costs can vary widely.
It’s important to keep those factors in mind when planning and evaluating the success of a retargeting campaign. To learn more about retargeting with Centro, click here.