Last Updated on: 15th October 2024, 02:16 pm
After your business has spent time and money on R&D, production, and getting your products into the store at the right price, the difference between success and failure is rooted in how effectively you can let the right customers know about your offers. Working with a retargeter is an essential part of this success, but working with a single ad partner is putting all your eggs in one basket. We’re looking at why working with multiple retargeters allows you to reach more people and drive better campaign performance and business results.
In this article, you’ll learn about:
- Why healthy competition both mitigates risk and drives excellence.
- How running campaigns with multiple retargeters improves reach, conversion rates, and overall ROAS.
Table of Contents
- How a multiple retargeting strategy works
- The initial benefits of adding ad partners
- Increasing impressions with multiple retargeters
- Improved ROAS and effective use of budget
How a multiple retargeting strategy works
The retargeting algorithms employed by ad partners pick up on markers like browsed products, ad clicks, or abandoned carts, and then choose what ads to display to users to convince them to convert. Within this, there are a number of strategies for running effective campaigns. Multiple retargeting means utilizing two or more retargeting providers to run campaigns for your business.
Many businesses working with a retargeting partner will ask the fair question, “If I’m working with one partner, why would I add another that does the same thing?” Here is the absolute key to the value of a multiple retargeting strategy: while ad partners are essentially offering the same service, they can use different technologies. Therefore, the markers that one provider’s algorithm picks up on will differ from those of another. This means that a second retargeter will identify and reach out to users that the first might have missed. Rather than reaching the same customers with ads from different partners, you are actually opening up new user groups and increasing the potential revenue from campaigns.
The initial benefits of adding ad partners
There are several benefits to working with more than one retargeting partner. Some are technical, some are technological, and some are business-focused. However, they can be distilled down to three main areas:
- Better results, as multiple retargeting can find more prospective buyers and help them convert interest into purchases.
- Improved customer service, as each retargeter works harder to fulfill your needs and prove themselves against the competition.
- Constant development of products, leading to a more diverse scope of functionalities.
Ray-Ban, the iconic Italian sunglasses and eyewear brand, added RTB House to its retargeting in 2023, with a view to reaching a broader audience and increasing average order volumes (AOV). The results were compelling. By reaching different users in a multiple retargeting strategy, we helped the brand generate a 5.5% increase in revenue from display advertising and an 11% better Return on Ad Spend (ROAS). What’s more, the challenge of competition makes each retargeter work harder to prove their worth, with RTB House campaigns generating a 10% higher average order value than other partners active simultaneously. In light of this, we can’t resist saying that the results from multiple retargeting are so bright, you sometimes need to wear shades.
Increasing impressions with multiple retargeters
By working with multiple retargeters, you can increase your coverage. However, it’s no use reaching more people if they are not likely to convert. The key when adding a second retargeter is to choose one with technology that can identify potential customers and serve them with enticing ads.
Brazilian ecommerce pioneer Magalu introduced RTB House as an additional retargeter in campaigns supporting its popular app, a network of more than 1,300 stores, and numerous sub-brands. The total number of ad impressions across all partners increased. However, the real value to the business was seeing 2.7 times more conversions and a three-fold uplift in revenue as the campaign ramped up, as well as a 20% uplift in average order volumes. The quantity of impressions is important, but the quality of campaigns is measured by hard numbers.
Improved ROAS and effective use of budget
Return on Ad Spend (ROAS) is really the key measurement of any marketing activity. Whenever a business spends money, it is speculating in order to accumulate. So, even if impressions and conversions are positive, the question will still be: “At what cost?” In reality, adding a second retargeter increases revenue without compromising on cost, and improves ROAS in a closed-budget scenario, bringing more conversions at the same value.
What’s more, adding a second retargeter here is akin to adding A/B Testing to your advertising. At any moment, you can look at the ROAS of campaigns from one provider against those of another and make fact-based decisions about how to use your budget most effectively.
French giant Leroy Merlin added RTB House to its retargeting mix, hoping to challenge its existing partners. The campaign focused on developing traffic and sales, but had strict ROAS performance objectives. In the end, RTB House delivered, bringing a nine-time rise in conversion values from retargeting and a three-fold increase in ROAS. These are metrics that matter greatly to business, as they directly impact the bottom line.
Want to know more?
If you are interested in learning more about multiple retargeting, finding out more about the imminent transition to cookieless advertising, or getting any other information about what is happening in MarTech right now, sign up for our newsletter. RTB House is at the forefront of major changes in the ad industry, and we provide you with regular updates on what is happening now and what is coming down the line.
