Improve Your Display ROI With Segmented Audience Targeting
- Posted by Samantha Gilbert
- On September 5, 2019
Some would argue that audience targeting is the #1, most important marketing concept.
It also isn’t anything new to know that using audience targeting efforts in both traditional and digital helps improve overall performance, ROI, and brand awareness. Multiple studies show that honing in on the correct audience and delivering a tailored message to them at the right time will improve your performance across all channels.
While most marketers want to deliver their messaging to a broad audience so as not to miss out on any potential business, it is important to realize that budget also plays a role and not everyone’s budget is large enough to reach the broad audience they want to.
In these cases, marketers should be data-driven and use audience targets that get them the highest ROI.
With this in mind, Screen Pilot decided to test what audience markets perform best for their display remarketing campaigns.
Traditionally, we target all visitors to the website. While this performs well and sees a good ROI we noticed that, in many cases, the budget wasn’t big enough to deliver ads to this broad of an audience.
Therefore, we tested splitting our remarketing efforts between users who visited the booking engine and those who had not visited the booking engine and analyzed their performance separately.
Once we began splitting up our users, we began to notice a theme. CTR and CPC remained the same between the booking engine visitor audience and the non-booking engine visitor audience.
However, we saw a 585% decrease in cost-per-conversion for the booking engine visitor audience.
Also, we also saw an improvement in website metrics and engagement.
First, our bounce rate was lower for our booking engine visitor audience, dropping by 10% or more in most cases. Additionally, the booking engine visitor audience saw a longer time on site and more pages per session.
With this data, we can conclude that the smaller booking engine visitor audience is more engaged and has a higher intent to purchase.
- Segment audiences into smaller groups based on their position in the purchasing funnel for a higher ROI.
- If you are limited by budget, only target the low funnel audience (i.e. booking engine visitors) for a lower cost/conversion and better bang for your buck.
- If you are not limited by budget, personalized messaging to each segmented audience can go a long way. For example, target booking engine visitors with offer-based ads and non-booking engine visitors with rooms or amenities ads.
In conclusion, we found that segmenting audience targets into smaller, more focused groups will improve marketing performance, especially in display remarketing. While this means reaching a smaller audience, it may also result in reaching an audience with a higher intent to purchase.
While in some cases CPC and CTR may stay the same, the conversion rate will increase and cost will decrease with segmented audience targeting. This means a lower cost per conversion and higher ROI for your property which means, ultimately, a higher yield.
Develop a segmented audience targeting strategy for your display remarketing campaigns and implement personalized messaging to improve your remarketing results and ROI.
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