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Press Release

Many E-Commerce Sites Should Optimize Retargeting for Better Results

Augusto Beato, CEO of Portland SEO, advised retailers who outsource their advertising processes to correct the poor recommendations given by their product recommendation engines.

"Consumers have been seeing ads for products they’ve either purchased or are similar to what they just bought," Beato pointed out.

Many retailers misjudge how much they need to be retargeting in the first place, and more of them are simply not getting retargeting right at all.

According to a survey by ​Nanigans​, as many as 77% of consumers report they often see too many retargeting ads from the same retailer, while 88% report seeing retargeted ads for products they’ve already purchased.

Another defect is that retargeting is optimized toward the wrong metrics such as last click attribution, where any vendor or any ad is given credit for a sale if a consumer clicked on that ad and ended up going to purchase.

"However, it doesn’t take into account whether that user was predisposed to purchase anyway," Beato added.

Retailers hoping to boost online sales can coordinate with ​Portland SEO by clicking here.

While 43 percent of e-Commerce marketers use return on ad spend (ROAS) as the primary metric to measure digital ad performance, it’s not the only metric retailers can use to measure ad success. Incremental returns is also another important metric, in that it’s specifically designed to measure sales that a retailer wouldn’t have seen without the advertising in the first place.

There was even 14 percent who said they use six or more KPIs to measure campaign effectiveness.

Up to 83 percent of e-Commerce marketers believe some of the sales they attribute to retargeting ad campaigns would have occurred organically without advertising at all, but only 28 percent have a way to prove it, the report said.

One solution would be to “borrow” a measurement tactic from traditional advertising: lift testing. Marketers were quick to abandon this technique when they shifted to digital advertising, according to Kelly, but that was a mistake.

With 53 percent of retail marketers saying they plan to increase digital ad spend over the next 12 months at an average projected increase rate of 24 percent, the stakes for improving digital advertising’s ROI are high.


Contact Portland SEO:

Augusto Beato
(503) 278-5580
111 SW 5TH AVE Suite 3100,#3102 Portland, OR 97204