QUISMA Whitepaper Retargeting by QUISMA GmbH

Retargeting works â&#x20AC;&#x201C;

Converting at the second attempt March / 2011 1

1. Introduction Display advertising continues to be one of the most important elements of any successful online marketing strategy. According to OVK â&#x20AC;&#x201C; Circle of Online Marketers spending in this area rose by 35% in 2010 to a total of EUR 3.2bn. Display advertising not only serves branding purposes, but is also used very successfully as a means of sales promotion. And, as for all advertising, one thing applies to the digital world, too: the more targeted and relevant the means of conveying the message, the greater the chances that the recipient will react in the envisaged manner. Targeting enables this. This is why it has become a standard part of display advertising. There are several different ways of targeting, including geo-targeting, behavioural targeting, semantic targeting and socio-psychographic targeting. They all aim to improve the way in which target groups are addressed and to enhance marketing communication. Another form is retargeting, which we discuss in detail in this white paper. Retargeting aims to increase advertising efficiency. Retargeting is a very powerful tool in the performance marketing toolkit. Ecommerce retailers have to generate up to 70% of their users from â&#x20AC;&#x153;paid forâ&#x20AC;? traffic. Before customers make a purchase, they look on average at four websites and 98% of all visitors to online stores leave the store without buying anything. These facts are vital for retailers to take into account when planning their advertising budget.

Retargeting is effective and helpful above all in lowering the cost of increasing orders and in using expenditure on advertising more efficiently: advertisers using our services receive on average 16 times the return on investment.

2. Converting at the second attempt The German Digital Economy Association (BVDW) defines targeting as follows: “Targeting means controlling advertisements in an automated and precisely directed way using a range of different parameters. Targeting’s purpose is to deliver digital advertising to defined target groups to maximum effect and with reduced wastage.” Targeting, therefore, is about precisely directing adverts at users who match specific criteria. Advertisers and users benefit from this equally: for the former it increases the efficiency of campaigns, while for the latter it makes advertisements significantly more relevant and interesting. One particular form of targeting is what is called retargeting. This is the repeat addressing of a user group that has already performed a specific ‘action’. In its simplest form this may just be visiting a particular website. Alternatively it may be a more definite act, such as placing an online order. The aim of retargeting is to reduce or minimise wastage and to increase advertising relevance. This works by delivering appropriate ads to an interested and receptive target group that has relevant profile attributes.

Retargeting works

The user visits the advertiser’s website and leaves it again.

The user visits another website within the QUISMA network.

On that site the user sees a banner for the advertiser and clicks on it.

The user is taken back to the advertiser’s website and buys the product.

Retargeting works: conversion rates go up by a double-digit percentage.

3. Retargeting options ‘Sequential control‘ There are several different forms of retargeting, such as, for instance, ‘sequential control’. In this form of retargeting a number of different pre-defined banners are used, aimed at addressing users in a manner appropriate to the given situation. The diagram below illustrates this (based on the assumption that four different banners are available). Users control delivery of pre-defined advertisements themselves through their behaviour. The probability of the ads matching their taste goes up and the desired action on the advertiser’s website becomes more probable. The principle of sequential control is based on leading each ‘lost’ user back to the website with their own ‘story’.

Diagram:

Product NEW

Product

Four casters, height 66 cm, Outer pockets, soft luggage

€ 110

Buy now

1. The user sees banner number one and visits the website, but the visit does not convert into a sale.

NEW

Four casters, height 66 cm, Outer pockets, soft luggage

€ 110

Buy now

2. When contact with the user occurs again, banner number two is shown and conversion to a sale is achieved.

Product

Four casters, height 66 cm, Outer pockets, soft luggage

Product2

6 pieces, Height 15 cm, Shatterproof Glass

NEW

€ 110

€ 15

Buy now

3. As this user’s in-

terest has already been converted into a sale, banner number three is no longer relevant and is skipped.

4. Banner number

four gets delivered again, now with the aim of crossselling.

‘Dynamic control’ – Starting point: information Another form of retargeting is ‘dynamic control’. Users are shown banners which are based on their browsing history. This dynamic targeting occurs as soon as the user has visited the website for the first time: if he or she has viewed products without buying them, the products they are shown within the dynamic advertising space are ones that match their interests. That may be the identical product or different versions of it with the potential for sales success.

SHOP

WWW Exposure to personalised advertising on various websites 99% in 24h Impressum

Produkte

Modell Rollo Quick, Rot, 2 Rollen

2-Rollen Trolley

Über dieses Produkt Trolleys

Kulturbeutel Reisetaschen Rucksäcke Beauty Case

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Product is viewed

SHOP 2-Rollen Trolley zwei Außenfäch er drei Innentaschen

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99% in 24h Impressum

Produkte

Modell Rollo Quick, Grün, 2 Rollen Über dieses Produkt

Trolleys

Kulturbeutel Reisetaschen Rucksäcke Beauty Case

jetzt kaufen

Product is bought

2-Rollen Trolley

SALE

jetzt kaufen

‘Dynamic control’ – Starting point: aborted purchase Retargeting is also used where users leave a website before a transaction is completed. When a user has successfully completed a product search in an online store and decided to buy one or more products, these go into their shopping basket. At the end of the shopping process there may be many reasons why the purchase is nevertheless not completed: some relevant customer data is not available right then; despite getting this far the user wants to mull over the decision to buy some more; the order process requires more time than the user currently has, etc. Despite being interested in the product(s) and deciding to make the purchase, the user thus fails to complete the transaction. If users are ‘lost’ at this point within the ordering process, the aim is to target them with dynamic ads that refer to the content of their last shopping basket and ‘at the second attempt’ to get them to complete the purchase.

SHOP 99% in 24h Impressum

Warenkorb

Ausgewählte Produkte Produkt

Produktinfo

Preis

Anzahl

99,00€

9,99€

29,99€

mit Sicherheitsschloss

Farbe: Blau

mini Reisetasche mit 2 Außenfächern

Gesamtsumme: 139,99€

Zur Kasse

SALE

YES

Purchase process aborted

Objective achieved

WWW

mit Sicherheitsschloss

jetzt kaufen Farbe: Hellblau

etc.

jetzt kaufen

Contact with ad that refers to he last shopping basket.

‘Dynamic control’ – Starting point: sale As soon as one sale is completed, the process of obtaining the next one starts: if a user has indeed bought the product they viewed, the next time they come into contact with the ad they are shown products that go with what they bought and are likely to match their interests. The probability of successful cross-selling is significantly increased.

First purchase process

SHOP

Second purchase process

WWW

SHOP

99% in 24h

99% in 24h Impressum

Produkte

Impressum

Produkte

Modell Rollo Quick, Schwarz, 2 Rollen Über dieses Produkt

Trolleys

Kulturbeutel Reisetaschen Rucksäcke Beauty Case

Aktentasche Business, Schwarz, mit Umhängegürtel

Silber

Über dieses Produkt

mit Zahlenkombination

jetzt kaufen

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Kulturbeutel Reisetaschen Rucksäcke Beauty Case

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schwarze Aktentasche

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SALE 1

SALE 2 etc. Data from the purchase history enables precise retargeting.

‘Loyalty’ Finally, there are also campaigns that run through customer loyalty. This form of retargeting is geared towards existing customers and regular users of a website. This group’s history (e.g. past website visits and purchases) provides particularly valuable information, which can be used to nurture and increase the user’s loyalty to the online store. Products can be presented, for example, that are based on past purchases: very much on the lines of ‘customers who bought XXX are also interested in XYZ’. If the customer has created any wish lists, these can also be used to show highly personalised advertisements.

User’s history

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Customer interests get recorded.

Personalised ad gets shown.

Summary The aim of all of retargeting options mentioned before is to increase conversion rates and ultimately to lower the cost of gaining customers. They are also designed to improve customer loyalty and to cut down on any stumbling blocks within the information process right through to the purchase decision. Whether a retargeting campaign will really make sense can be seen from the number of visitors to a company’s online store/website. If the question ‘Do you get more than 100,000 unique users a month?’ can be answered with ‘Yes’, there is nothing to stop your company being able to run a very successful retargeting campaign.

You have sufficient unique users on your website? Then enjoy success with retargeting!

4. How does QUISMA Reprize work? A potential customer’s behaviour is the key factor that can bring success. A user may, for instance, view a variety of different products while visiting a website, QUISMA Reprize then logs this user, notes their interests and uses this data for personalised product recommendations. If, after leaving the site, this person is encountered again within the QUISMA network; they then get shown a product recommendation in real-time based on their surfing behaviour. The user thus gets retargeted during a period of acute interest, gets taken back to the site they originally visited and gets persuaded at the second attempt to make the purchase. On the creative side are varied and dynamic ads that by virtue of their personalisation neither bore nor overwhelm the user. Via sophisticated recommendation algorithms new products also get interspersed, conveying to the customer a genuine shopping experience and representing clear added value. Technical implementation could not be easier: firstly two pixels get integrated on the website. The first is put on the product detail page, the second incorporated into the ‘Thank you’ page. A content management system helps to enable the first pixel to be integrated on all relevant pages. These two pixels are used to exchange key data with the ad server in order for the retargeting campaign to achieve optimum success. The next step is to load ads and product data into the QUISMA system. This is generally done via a defined feed containing the online store’s product data. The average time taken to implement this is about 2 hours, keeping technical resource to a minimum.

The key to success: correct targeting at the right moment with a pertinent message.

5. Retargeting banners The ads used are of great importance to the success of retargeting campaigns. As potential customers go through the process of deciding to make a purchase, it is essential to make contact with them regularly so as not to lose them to the competition. There are various different possible creative approaches and one ad form is extremely successful: Personalised dynamic banners (banners showing relevant product offers) On banners like that the advertising company stays in the background. The focus is placed on the products viewed on the website and targeted at the customer on the basis of their interests. As the ads can be dynamically customized, every banner is totally up to the minute and personal: image, product description and even the price can be customized to the interests of each individual user.

data gets loaded dynamically into the ad:

Image

productdescription

price

Red suitcase

Four rollers, height 66cm, outer pocket(s), soft luggage, combination lock, inside pocket/compartments, reinforced corners, size index: M

â&#x201A;Ź 110 3

Buy now

6. Technical implementation At this point we take a closer look at the two most important factors in the technical implementation. The first building block is the interface to the product catalog – a prerequisite for using QUISMA’s Reprize technology. First an update cycle has to be defined. A frequency of once a day has proved to work well. The product information gets reloaded into the system during this cycle. The following formats are supported: TXT, XLS, CSV and XLM. The following product information must be included in the product catalog provided:

• Product number • Product name • Product’s image URL • Product’s click link (deep link to product detail view) • Product category • Sales price (optional) • Availability (optional) • Product description (optional) As already mentioned, two pixels (tags) are used within the Reprize technology. Using the tag on the product detail pages, the products shown in detail are being transferred to the system. In order to be able to implement this, the depicted product’s product ID has to be assigned to the tag.

For example: TAG: <iframe width = „1“height = „1“frameborder = „0“ src=“https://tracking.quisma.com/l.cfs?action=counter&qupi d=30480&CID=7&productID=[productID]“> </iframe>

Only one product ID can be assigned for the product currently being depicted. The format is: productID=[productID].

For example: Fertiger Beispiel-String für das Produkt mit der ID 12345: productID=12345

At the same time the second tag is used on the ‘Thank you’ page to communicate a successful purchase completion to the system.

For example: TAG: <iframe src=“https://tracking.quisma.com/s.cfs?qupi d=30480&CID=10&OrderID=[bestellungid]&TotalPrice=[pre is]&CurrencySymbol=EUR&Note=[bemerkung]“ width=“1“ height=“1“ frameborder=“0“> </iframe>

7. Conclusion Users make on average seven website visits before their interest is converted into a sale. At the same time the click rate for banner ads is approximately 0.15%. In order to be successful, advertisers must therefore either go to enormous effort, expenses and deliver a huge number of ads â&#x20AC;&#x201C; or structure the control of their campaigns more efficiently.

Retargeting using QUISMA Reprize helps to reduce wastage dramatically and at the same time to achieve a significant increase in conversion rates: with over 80% coverage on the German Web, including AGOF Top 50 with 100% transparency with suitability for all lines of business with loyalty targeting for tapping into cross-selling potential with personalised targeting by means of dynamic banners with large-format ads achieving high conversion rates with risk-free billing based on CpO, CpL or CpC

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